An article in Harvard Business Review shows there are 3 ways to create a value proposition for your customers. The best approach is called Resonating Focus, although each has its charms and drawbacks:
- Benefit Assertion. This is a laundry list of all the features and benefits your product or service has. The challenge is, that with a few exceptions, your competition will have the same list. It’s hard for true differences to emerge, and the customer might not see the value of your solution.
- Points of Difference. Start by saying why your product is different from the competition’s. Of course, this assumes that the differences are of value to your customers, and that they know why.
- Resonating Focus. Pinpoint two differences from, and a similarity to, your competition based on what’s important to your customer: “Yes, we do that, but we also do this and this better, and that’s why you should work with us.” This approach requires a careful probing of customer needs before presenting solutions.
By determining what resonates with your customer, you’ll create a true value proposition.
