The only way for the business to truly benefit from spending its scarce resources on marketing is if the customers those $ attract return not occasionally but regularly.
But, if the marketing has been a façade, a false skin, over the actual business, buyers will experience buyer’s remorse and let everyone know about it. The business will now be worse off having spent its scarce resources without sufficient return.
So what is Value Proposition?
Simply put, it’s how well your business solves your target customers‘ key problems or meets their key wants or needs. The key words being “how well”.
How can a business tell whether it has a good or poor Value Proposition?
Two thing: Margin and Repeat Customer%.
If a business has exceptional Value Proposition your Target Customers will come back. Not only come back but be willing to pay a higher price. Which means very good margin for your business.
What’s a good retention rate? In my opinion better than 70%.
What’s a good margin? Much, much better than your industry stat.
Remember Industry statistics means the overall Average!