Money is a Scarce Resource
The only way for the business to truly benefit from spending its scarce resources on marketing is if the customers the money spent attracts 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 things: 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 a 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!
List of Seven Really Good Value Propositions
- CrazyEgg – Website Behavior Tracking at an Unbeatable Price
- LessAccounting – Bookkeeping, Without the Hassle
- Digit – Save Money Without Thinking About It
- Slack – Be More Productive at Work with Less Effort
- Unbounce – A/B Testing Without Tech Headaches
- Apple iPhone – The Experience IS the Product
- Uber – The Smartest Way to Get Around
Read the entire article about why these are really good examples of value propositions:
Now, what is your unique value proposition?