Defining Your Value Proposition
When it comes to parting with my wallet, it pains me to hand over hard earned dollars unless I know I’m getting an incredible value in exchange. Whether it is for a new desktop, Nike’s Air Force Ones, or Dragon Ball Z XenoVerse for PS3, there has to be a clean message that the consumer is purchasing something worthwhile. Perhaps I’m cheap, but exchanging money for an item without clearly understanding the value exchange is ridiculous. There must be proof that you’re satisfying my need through your product that I can’t find in another company, or using the same dollars to buy a ticket to Durban, South Africa. It’s just in my nature to be cheap.
To be clear, I’m not cheap by financial situation.
You can have an innovative product, but if the value proposition and price tags do not match, then it’s an uphill battle. Let’s take the segway for example. Analysts, investors, government officials and distinguished entrepreneurs alike believed the segway would be adopted throughout metropolitan cities, replace vehicles and move us towards the 21st century. Where is it now? Nowhere. Among all the analyses stemmed from this apocalyptic failure, the one which stood out the most is botched message of the segway’s value proposition to its end users. Its price point, design and “efficiency” couldn’t convince mass consumers to spend $X,XXX compared to a Kawasaki Ninja, Yamaha or Harley-Davidson of a similar expenditure. Simply put, it couldn’t stack up against the competition.
Which would you rather buy for $6,897?
Now bringing it back to this article’s point, imagine not only having to prove your worth, but convincing others to purchase yours over rivals, adjacent competitors and above all the noise. Adding to the problem, throw in the theory there are many people who are just as cheap, or even more, than me.
Conviction in the value proposition gives a company an edge over others.
Get consumers on your side by communicating your product satisfy their wants; better yet, their needs. Needs triumphs over wants any day. Wanting soda may win over water, but when it comes right down to it, water is a necessity. Hit the need, capture the audience.
Craft the value proposition, and analyze the results.
Agree? Disagree? Tweet it out to me @BrandonTLuong!