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Worldview from the customers' point of view
Every person interested in entrepreneurship and business management should be able to give a clear, decisive and reasoned answer to this simple but important question in order to be certain about the future of his business:
What value do you want to create for your customers that they would be willing to pay you for?
Many businesses expect a quick customer response when they offer a product or service. They spend a lot of time perfecting their product without even asking their customers for feedback. So when customers don’t pay attention to their product, they realize that they have gone down the wrong path and failed. For this reason, one of the key issues in successful business leadership is to accurately understand the needs and demands of customers, and this means paying attention to creating right value propositions for customers.
So it can be said that the quality of value proposition drives the business engine and ensures its survival and growth.
For this reason, the importance of correctly understanding the concept of value and creating value for any business is so high that it has been tried to be addressed specifically and in detail in this article.
What is Value?
The word value means « to be valuable » and when we talk about valuing something, it means that it is worth paying a price to get it. Sometimes this price is money, sometimes time and sometimes even our lives! You said that the value of everything is not the same in our opinion.
There is a direct relationship between the value of a thing and human need for it; In the sense that when we need something, that thing seems very valuable in our opinion.
In other words, the sum of things (material and non-material) that we get in exchange for having a specific asset is called “value”; Therefore, the value of each type of property can be different for each person.
Types of Value
Different aspects of life have their own values; For example, “Economic value”, “Ethical value”, “Cultural value”, “Strategic value”, “Exchange value”, “National value” and… some types of value are mentioned below:
Economic Value
“Economic value” is a measure that shows the benefit provided by a good, person or service.
In today’s age, we may think that economic value is the same as price; While economists believe that “Economic Value” is something beyond prices.
Ethical Value
Ethical values are the principles and rules that form the basis and framework of our decisions.
When you are in a situation where you have to choose between several options, you first discard the options that are not compatible with your values and then choose the best option from what remains.
Use Value
Here, the key question is how useful a product is for you.
It is clear that Use Value is largely subjective and relative, and everyone has a different assessment of it.
For example, when evaluating a purchase from a particular brand, this evaluation can be due to the pleasure you get from having that product or a level of quality and design that you believe is only available in that brand. However, Use Value is not unrelated to price; But it is not necessarily affected by it
Exchange Value
Exchange value is what we usually know as price. When we pay a certain amount for a product or exchange it for another product, its exchange value is determined.
Exchange value is not only a function of use value; But the competitive factors of the market also affect it. For example, an increase in supply or decrease in demand can affect the exchange value of many products.
Strategic Value
Anything that has a high exchange value and a high price does not necessarily have a high strategic value. This means that the point of view of the business leader can determine whether the issue or something has strategic value for that business or not.
Added Value
Added value and creation of added value is an economic concept of creation. Added value becomes meaningful when something is added to the value of raw materials and the cost of other production factors.
Value proposition design
According to the concept of value and its types, the value proposition describes the benefits that customers can expect from your products and services and is the commitment that the company undertakes to provide to customers. These values can be a good mood for the customer, a distinct personality for him, access and quick performance, less risk, more trust, etc.
Either way, your value proposition should go deep into the problems you’re trying to solve for your customers. In designing and creating value proposition, it is better to get help from creative thinking to create a unique and attractive value for customers.
A value proposition should clearly explain how a product fulfills a need, state its added benefit features, and explain why it is better than similar products on the market.
Without a value proposition, customers have no reason to buy from you. They may even buy from your competitors simply because they have a clear value proposition and articulate it clearly in their marketing and sales process.
One of the most important topics related to value proposition is the concept of business branding and brand value. Brand value expresses the unique personality and identity of the organization and differentiates the organization from its competitors. Every business must define its brand value and define what its products/services will help people or solve a problem in society.
Types of value proposition
Your business value proposition creates value with a distinctive mix of elements that meet the segmentation needs of target customers. The nature of the values of a business can be one of the following two states:
- Quantitative values (such as price and speed of service)
- Qualitative values (such as product design and customer experience)
Value proposition design questions
When designing your value proposition, you should think about the following key questions:
- What are products and services?
- Who are the target market of the product and service?
- What value does the product and service create for the target market?
- How is this product and service different from similar products and services of competitors?
How to make value proposition?
Step 1: Identify the customer's core problem
This requires some initial research, but you can talk to your team members to tell you what the customer’s problem is. Customer service representatives, marketing specialists, and salespeople interact directly with customers and identify customer problems.
Step 2: Identify the benefits of your products
Very simply, list and describe the benefits of the product. These benefits should be brief and focused on the customer’s needs.
Step 3: Explain what makes these benefits worthwhile
Now add another sentence that explains why this benefit is important to the customer.
Step 4: Connect this value to the buyer's problem
At this point, align the buyer’s problem with the elements that make your product or service valuable. If they align, you’re ready to create your business value proposition to differentiate your offering from the competition. If they don’t match, repeat the above steps until you find a specific need from the buyer and a suitable solution from your business to address it.
Step 5: Position yourself as the premium provider of this value
Finally, polish your business value proposition to make it unique. What special services do you offer customers that others do not? Do you offer additional services that other companies charge too much to provide? These elements can help differentiate your business’s value proposition from competitors while focusing on the buyer’s needs.
Step 6: Use a template to help you brainstorm
Once you’ve gone through the previous 5 steps, you can easily implement them into value proposition templates. For example, the template suggested by Steve Blank offers you a simple way to do this
Value Proposition canvas
The Value Proposition Canvas is a visual tool that helps you align your business product or service based on customer needs. The value proposition canvas defines how you present your value to the market. You can use the value proposition canvas when introducing a new offering to the market or when developing an existing offering.
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