What is a Customer Value Proposition?
A Customer Value Proposition, or CVP, is your marketing message. It defines why a person would choose your business, product or service over another and therefore helps you attract the right customer.
At a high-level, a typical Customer Value Proposition (CVP) might be built around themes such as:
• Fast delivery
• Quality materials
Why are Customer Value Propositions important?
By expressing what your ‘customer value proposition’ is more easily and quickly, brands can create a greater sense of engagement and feel more relevant to your ideal customers.
Your CVP should can be crafted around 3 strategic principles; Authenticity (a promise you can deliver on), Differentiation (sets you apart from competitors) and Relevancy (resonates with your ideal customer/employee/investor).
A brand will define its CVP, with its key target audience in mind. You may even have alternative versions of your CVP, if you have different types of customers. That’s because their needs, values and desires could be very different. For example, put yourself in the shoes of someone who shops for price; who thinks primarily in terms of financial returns. Or a different customer; who thinks in terms of a purchase’s quality, status and experience. Do you want to appeal to one, or both?
How to create your Value Proposition?
So now you know what a Customer Value Proposition is, now how do you go about creating one? Always start with research. Knowing what your ideal target audience values about your business, product or service are the key foundation to crafting a Value Proposition that attracts. You talk with your customers day in and day out. What are their major questions, roadblocks, challenges and how are you well placed to provide the best solution? Understanding this value exchange is at the heart
of your proposition.
Additionally, it’s important to also research your market place. What are your competitors claiming as their Value Proposition? How can you be different to them, while still being true to your offering?
Once you have sign-off on your Value Proposition themes/pillars at a strategic level, you will need to craft them into a narrative that uses your brand’s tone of voice and speaks directly to your ideal
audience. The more easily and quickly you can express why your offer matters to an audience the
more effective your marketing dollars will be.
If you need help crafting your unique Customer Value Proposition, please reach out. We’d love to hear about your businesses and discuss how we can help you attract more of your ideal customers.