How to Determine value proposition of a product or service?

determine your product value proposition

Determining the value proposition of a product or service involves identifying the unique benefits and value that it offers to customers compared to alternatives in the market. There are several methods by which you can determine that. The following steps will help you ascertain your product or service’s value proposition:

  1. Understand Customer Needs and Pain Points: Start by understanding the needs, desires, and pain points of your target customers. Conduct market research, surveys, interviews, and focus groups to gather insights into what motivates your target audience and the problems they are trying to solve.
    • Example. Brissy Studio offers a business starter aid package which is designed to help new business starters with the simple yet time consuming steps they need to take to start their business. Here we are trying to address a pain point that we have identified working with business starters for many years. We designed a package that helps with all aspects of business setup. The service will save customers time and money as the cost is reasonable and tax deductible at the end of a financial year. This means the business starters can spend their time developing their business plan rather than managing business registration, setup and branding.
  2. Identify Key Features and Benefits: Identify the key features and benefits of your product or service that address the needs and pain points of your target customers. What makes your offering unique or superior to alternatives in the market? Consider both tangible features (e.g., functionality, performance) and intangible benefits (e.g., convenience, peace of mind).
    • Example: the business starter aid package benefits are
      • Setup a business using a proven method. doing it right the first time.
      • Save customers time doing the leg work and giving them the freedome to focus on the business.
      • Reasonable and affordable pricing that is tax deductible at the end of the year.
      • Laying strong and effective foundation by leaving the setup to system professionals.
  3. Highlight Differentiators: Determine how your product or service differentiates itself from competitors and why customers should choose it over alternatives. Focus on aspects such as quality, innovation, customization, price, customer service, or brand reputation that set your offering apart and create value for customers.
    • Example: Our first business starter package is unique because
      • It is offered as a one stop shop solution. The customer will be dealing with one team and one project manager.
      • It is affordable and easy to manage.
      • It requires minimum time from the customer. Time is a luxury that a business starter don’t have.
  4. Quantify Value Proposition: Quantify the value proposition of your product or service by calculating the tangible benefits or savings it provides to customers. This could include cost savings, time savings, increased efficiency, improved productivity, reduced risk, or enhanced outcomes. Provide concrete examples or case studies to illustrate the value in real-world scenarios.
    • Example : Tangible benefits of Brissy Studio Business starter package:
      • Offering saving of nearly $5,000 on average for a business starter.
      • Saving over 30 hours of setup management, supplier management and follow ups by dealing with one team.
      • Saving an immeasurable amount of headache and pain in the long run by doing it right the first time. We make sure of that because of our experience building small business for the last decade.
      • Reducing risk by outsourcing the work to a professional team who have been doing this for many years.
  5. Communicate Clear and Compelling Messaging: Craft clear and compelling messaging that communicates the value proposition of your product or service to customers. Use language that resonates with your target audience and highlights the benefits and solutions your offering provides. Focus on addressing customer pain points and demonstrating how your offering meets their needs effectively.
  6. Test and Iterate: Test your value proposition with real customers to gather feedback and validate its effectiveness. Conduct A/B testing, surveys, or focus groups to assess customer response and refine your messaging accordingly. Iterate on your value proposition based on insights gained from customer feedback and market testing to ensure it resonates with your target audience.
    • Going back to our example, we have tested the outcome of the offered proposition (The business starter package) in the last five years and have gathered 100s if not 1000s of feedbacks from customers and users from different businesses. The feedback is essential to improve the product or service. Even if it is perfect, there is always room for improvement.
  7. Monitor Competitors: Keep an eye on competitors and how they position their products or services in the market. Identify gaps or areas where competitors fall short and leverage those insights to strengthen your own value proposition. Continuously monitor market trends, customer preferences, and competitive landscape to stay ahead of the curve.
  8. Align with Brand Identity: Ensure that your value proposition aligns with your brand identity, values, and positioning in the market. Consistency in messaging and branding helps build trust and credibility with customers and reinforces your unique selling proposition.

By following these steps, you can determine the value proposition of your product or service and effectively communicate its unique benefits and value to customers. A strong value proposition not only differentiates your offering in the market but also attracts and retains customers by addressing their needs and delivering meaningful solutions.

If you need help, reach out to our friendly team and a system specialist will assist you with more tailored advice to your business.

Picture of Johnny Hummel

Johnny Hummel

System Architect | Senior Digitalization Advisor | Software Engineer

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