Assess Your Value Proposition

 The High Costs of Low Perceived Value

  • Lower Margins from Frequent Discounting

  • Pressure to cut costs and skimp on service customers value

  • Customer Defection and negative word of mouth from price oriented, dissatisfied customers

  • Greater difficulty winning good, profitable new customers than firms with high value and a better reputation 

The Benefits of a Compelling Value Proposition

  • Higher Margins from Value that meets emotional and financial needs

  • Justification to invest in the service customers really value

  • Positive word of mouth and referrals from value oriented, more satisfied, more loyal customers

  • Easier to attract, win, and grow your loyal, profitable customers 

Assess Your Value Proposition

  • Are you customer focused? Answer the 5 key questions below.

  • Rank yourself on a 1 to 5 scale, where 1 = NO and 5 = YES. Then click SUBMIT at the bottom.

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Customer Value Propositions in Business Markets

In my favorite article from the Harvard Business Review on Customer Value Propositions, the authors distinguish between three kinds of value propositions:

  • All Benefits: All the benefits customers receive from a market offering; the problem is customers may not agree with the benefits you assert. (Fair)

  • Favorable points of difference: All favorable points of difference a market offering has relative to the next best alternative. Answers "Why You", but could presume customers value these differences. (Good)

  • Resonating Customer Focus: The one or two points of difference whose improvement will deliver the greatest value to the customer for the foreseeable future. Requires knowledge of how your product or service impacts a customer's business and gets at the heart of the value you provide. (Excellent)

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