Is it time to renew your proposition?
5 questions that every entrepreneur should ask themselves
Due to the increasing speed of innovations, new technologies and changing customer needs, your products and services are becoming less relevant faster than ever. An organization that is able to continue to renew itself has an edge over its competitors.
In recent years, many organizations have come under considerable pressure. For example, no less than 90% of SMEs are not growing or are barely growing (Dutch Committee for Entrepreneurship and Financing, 2017). A common cause of this is that their product and service offerings are not keeping up with the times.
What unique value do you deliver to your customers?
In a proposition, you describe the benefits of your product and what it delivers for your target group (see also our blog; what is a proposition?). A good proposition is seen as the central foundation of your company.
But products and services that still deliver value to your customers today might quickly lose their value tomorrow. Just think of parking posts. Indispensable until about 5-10 years ago, but now largely replaced by parking apps.
Of course, you want to prevent that for your company. Therefore, make sure that you regularly, certainly once every three years, critically review your value proposition. Do you want to grow? Then dare to innovate!
5 questions for renewing your proposition
How do you know when it is time to renew your proposition? With these five questions we will help you on your way.
1. What makes your proposition unique?
It starts with orienting yourself on what is happening in the market, because you only stand out if you distinguish yourself from your competitors or alternatives. Just look at Tommies Tomatoes and Looije Honey Tomatoes. Or, like Bloom-on, you can offer your products in a different form, for example in subscription or lease form.
2. What are the pain points of your customers? What makes your customers happy?
A strong proposition stands or falls with insight into the pain points and wishes of your customers. Your product is only relevant if you solve a specific problem or fulfill a customer need.
Does it happen regularly that you have to say ‘no’ to your customers because you do not offer the requested service, payment method or delivery? Or do customers increasingly select other options over your product? Then that is a clear signal that there are opportunities to improve your products and services.
3. Which new technologies or trends will influence your product?
You have probably heard the terms Robotization, Blockchain or Internet of Things, VR and subscription economy. Even if these technologies are not yet widely used in your market, you can see how they can be relevant to your company. Once a competitor enters the market with these technologies, you are already 1-0 behind. So ask yourself, what new technologies can help improve the value for my customers?
4. Is your proposition understandable and clear?
Make sure it is clear what your product does and what customers can call you for.
You can quickly test whether your proposition is clear and easily understood. Tell ten total strangers that are potential customers in one minute what your product is, who it is for and what is unique about it. Do they understand? Then at least the proposition is well explained and understandable.
You can do the same test for your website, called a 5-second test. Can they tell you later what you offer and for who it is? Then you are good.
5. Is your product or service profitable or growing?
It is also possible that you consistently earn too little. No matter what you try, with good sales, marketing or process optimization, it does not help to grow again. Do you have to push to sell your product? Then customers are probably no longer that enthusiastic or your product is at the end of the Product Life Cycle. Time for innovation!
Do you find it difficult to answer these questions properly? Then it is high time to take a closer look at your proposition, see how we can help.
