Is your pudding really as good as your marketing makes it out to be?
What is a proposition or value proposition?
USPs, distinctiveness, slogans such as ‘We are unique’, ‘Not just any bank’ and ‘Renewed formula…’. These are all slogans and terms to show that your company and your service provision are different from all those other products and services offered by the competition. As the English say so beautifully: “The proof is in the eating of the pudding”. In other words: it is not (only) about how beautiful the pudding looks or how well it is promoted (read: the marketing), ultimately the proof of a good pudding lies in the product itself, when you eat it! Of course, good marketing is essential for the growth of a product, because you don’t eat a delicious pudding that doesn’t look good or that you’ve never heard of. But just as important is the foundation of what you sell: the value proposition of your product or service.
A proposition is in the narrowest sense of the word a proposal or an offer that you make to your customers. With this offer you solve a problem of your customer. Think of the baker around the corner. The baker offers you the advantage of baked bread. In other words, you do not have to bake your own bread, it has already been done for you. If you look a step further, the value proposition becomes even clearer. You can also buy bread in the supermarket. Your baker around the corner therefore offers something extra in addition to the baked bread:
- it is freshly baked;
- available in different flavors that are not for sale elsewhere;
- in addition to the bread, the baker also bakes delicious cakes, pies and puddings… mmm;
- there is a nice interaction in the bakery;
- there is a home delivery service for the weekend.
The proposition of this baker contains all kinds of advantages that make a certain customer group prefer to go to this baker around the corner than to a supermarket. A good proposition is therefore the foundation of your company and the basis for growth, success or the lack thereof. The definition of a proposition as I often use it is:
“A value proposition is a combination of benefits that purchasing your product or service offers for a specific target group.”
— Proposition Hero
2 parts of a value proposition
A value proposition consists of two parts: a product and a customer part. In order for a product to be valuable to a customer, these two parts must fit together like puzzle pieces.
- Product proposition: the product offers a combination of benefits and/or solutions to a problem.
- Customer needs: the customer has a problem or a challenge that he/she wants to have solved.
Back to the example of the baker around the corner. For students who have to survive on a smaller budget and who prefer to spend their money on a night out, the supermarket’s proposition with slightly cheaper bread is more attractive than the baker’s with more expensive bread. On the other hand, the baker’s proposition appeals to young dual-income couples. In the weekend, for a little extra money, they opt for the feeling of luxury with the delivery service. What is a brilliant proposition for one target group is therefore a bad one for another. The challenge is therefore to offer the right benefits to the intended target group, so that they choose your product or service. When you have found the right proposition(s), you will notice that sales and marketing will be a lot easier. After all, you are swimming with the flow by offering a good solution to an existing problem for a suitable target group. In short, the pudding not only looks delicious, it is too!
Are you curious how you can improve your value proposition? Read more on our approach.
