Free Article – Ten Ways to Enhance you Value Proposition
Learn how to stand out from your competition
Key learning outcomes:
- Learn that fine-tuning your value proposition can put you ahead of your competition.
- Develop strategies to build on your knowledge and expertise to secure your place in the market.
- Recognise the benefits of conducting customer reviews and responding to both positive and negative feedback.
- Acknowledge that your value proposition should be reviewed regularly given the dynamic marketplace.
It does not matter what type of business you are in, your customers these days most likely have a choice. So what will make them decide to deal with or buy from you rather than your competition? It comes down to your value proposition. If you offer more value than your competitors, then there is a good chance the customer will not just choose you, but will be prepared to pay a higher price for your product or service.
It is essential that you are clear on the value you offer your customers. In this article we outline 10 ways you can enhance your value proposition.
- Know what you are good at
No business can be all things to all people. If you attempt it, all you do is spread yourself too thin and end up not doing anything well. An example is a restaurant that provides an extensive menu with pages and pages of choices for customers. This often leads to a disorganised kitchen, makes stock control difficult and often culminates in an average end product due to a lack of specialty and expertise. In contrast, you will often find the most highly regarded and awarded restaurants have a quite limited menu – they always follow a theme and then they own what they do. This level of specialty allows them to perfect their dishes, always use fresh ingredients and consistently deliver high-quality products and services to the customers, who in turn are willing to pay more.
- Become an expert
Knowledge and expertise are two things people value considerably. This is because it has been proven that authority and expertise are two of the key elements to successfully influencing others to say “yes” more often. Look for ways that you can portray a high level of knowledge and expertise when dealing with potential customers. Examples are becoming a leader within your industry group, publishing a newsletter or blog, displaying your qualifications or speaking at local or industry events.
- Enter awards
Industry or business awards provide your customers with third-party evidence that you are good or even the best at what you do. Think about how hotel groups use awards to encourage customers to choose to stay with them. An award that states that the hotel is the “best” at something appeals to customers who are looking for that type of accommodation. For example, “best family resort” will appeal to families. The most important thing about awards is to ensure that you use them to your advantage by thanking your customers for their support and make potential customers aware of them through your branding and marketing.
- Ask for reviews
Reviews and testimonials also provide your customers with valuable third-party evidence that you do a good job. People will tell others about experiences that stand out for exceeding their expectations, or, on the flipside, that fail to meet them. Encourage people to review your business as close as possible to the time of their experience, when it is fresh in their mind, to achieve a high response rate. You can do this by sending customers a survey or providing them something on the spot that has a link to the review site to make the process easy for them. It is important to monitor the reviews so you capture and deal with any problems customers might have experienced and thank customers for good reviews.
- Ask better questions
The more you know about what your customers want and why they would choose to deal with you, the more you can tailor your value proposition to attract future business. For example, a small wine bar might think that they are busy during happy hour because they offer discounted drinks. However, you may discover that customers keep flocking back, not because of the cheap drinks, but because of the complimentary tapas plate that is provided for each table. Once you are clear on what your customers like and value, you can use these elements in your marketing and attraction strategy.
- Be a great storyteller
People like what other people want and have – and you can use this to your advantage to help build your value proposition. Being able to recount how other customers found value in your product or service by using case studies and examples will help to convince potential customers that you are the right choice for them too. For example, a bridal shop may have a section on their website with photos of brides and a testimonial from each of them. They might also have a photo album for potential customers to look through in the shop that showcases their work and how the bride felt about the experience of dealing with them.
- Offer more
One of the best ways to enhance your value proposition is simply to offer the customer more value for their dollar. Continually think about ways that you can be better, faster or cheaper than your competition as this will enhance your value in the eyes of the customer. Remember, with any offer or promotion it is important to analyse and track the results to ensure the costs don’t outweigh the benefits.
- Focus on benefits
People buy benefits. When you are working on your value proposition, you need to articulate the benefit to the customer. For example a car may have a “feature” of reverse parking sensors. The advantage is that the sensors will alert you if you are in danger of hitting something. However, the real benefit is the peace of mind and confidence you gain by being able to reverse without the fear of hitting something or someone. There are several learning articles that will help you with benefit selling in this section of the website.
- Be able to quantify your value
Being able to provide some hard evidence to back up your value proposition gives it weight. For example, a tyre outlet may offer an express service for people that need their tyres changed while they wait. Rather than just promote the service as being fast, highlight that it offers more value to the customer because, for example, “we offer a guaranteed 30-minute turnaround with our express service”. Numbers and statistics can be very powerful when they are used effectively.
- Let people know
There is no point in having a great value proposition unless you let people know about it. Ensure that your value proposition is included in your marketing materials, on your social media and on your website. Again, it is important to include the benefits rather than just the features of what you have to offer.
One final word – ensure that you and your team are clear on the value that you offer potential customers. It is a worthwhile exercise every now and again to sit down as a group and to brainstorm and challenge your value proposition. Is everyone in the business clear on what the business offers in terms of value? For many long-established businesses, the value proposition may have changed over time as the marketplace changed. We suggest that you do a review every 12–24 months to ensure your value still holds true.Did you enjoy this complimentary article?
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