5 Steps to Creating a Value Proposition
A value proposition, otherwise known as your unique selling proposition (USP), is what separates your business from the rest of the companies in your market. It’s what makes your company and your product unique. Your value proposition should appeal directly to your intended target audience and should speak to their needs or concerns. Having a strong value proposition is essential in today’s world. With countless competitors in virtually every market, it’s necessary to make your product stand out and prove to potential buyers that you’re the right choice.
- Research your market – First, you need to know the audience you’re trying to appeal to. Conduct some basic market research and learn what type of users you think will use your product. How old are they? What’s the work or education background look like? Knowing these pieces of information will allow you to create a more accurate value proposition.
- Conduct a competitive analysis – Next it’s time to research the competition. Look into other companies who are going after your intended target audience. How does their product work? What are their price points? Conduct a competitive analysis and analyze the competition.
- What problem are you solving – Now that you know a little more about your market, you need to decide exactly which problem your product is aiming to solve. Fill in the template – “I want to achieve [outcome], so I use [product name]”. Using this template will guide you towards the problem you’re trying to solve.
- Elevator pitch – Now that you know what problem you’re solving for, it’s time to create a quick and concise product pitch. Creating an elevator pitch will allow you to quickly and clearly impress potential investors or business partners.
- Create and market your product – Lastly, it’s time to bring your product to life. Now that you know you’re target audience, know your competitors, know the problem you’re solving and have your pitch down, it’s time to start creating. Get your website live, start email campaigns, and go outbound to potential users. Work off their feedback and constantly be iterating your product to match user expectations.