by Annie M Manzi

Created on: August 25, 2008   Last Updated: September 04, 2008

Let me explain what a value proposition is. It is a clear cut reason why consumers should buy your product or service over a competitor's. It is not a mission statement that lists goals nor is it a motto or logo. A value proposition explains in a simple and short manner on how customers can benefit from your product. You are promising the customer that buying your product will result in an overall good customer experience. It is a promise that has to be accurate and believable. If you try to fool the customer, you will lose them in the long run.

Who needs to write a value proposition? If your company is selling something or providing a service, then a value proposition is needed. Even small companies should have one. A well written value proposition will drive customers to your company and increase sales. The company must be able to back up their claims or they are going to lose out.

As a consumer, I want to know why a company thinks their product is the best and what it can do for me. Is it the quality, the ingredients, workmanship, the type of raw materials, the customer control that makes worth my business? A value proposition is an outline of the total experience that a consumer stands to gain and should expect.

A marketer who is writing a value proposition better know the company's product well. All shareholders in the company have to be on the same page in order to accurately discern how the product and service will benefit the consumer. If the customer is not receiving the promised experience as outlined by the value proposition, then the marketing campaign will be less than successful.

For example: The Robinsons own a Bed and Breakfast. Their brochure promises clean sheets everyday, hot healthy breakfasts, separate bathrooms, and cozy rooms all in a bucolic setting. In actuality they serve a cold, although healthy breakfast, and the inn is set on the edge of town next to the grocery store. The quality of their service is not what they promised and the customer is not getting the total experience promised.

When writing a value proposition, list the product's core attributes in order of the importance. Why should a customer stay at the Robinson's Bed and Breakfast as compared to staying at the one down the road? Does their inn exceed expectations over the other one? Do they give a higher quality service? Do they provide the experience they pledged? Just make sure you backup your promise with the experience promised. If you don't, your reputation could be lost and you will lose customers to the competitor.

To keep customers, increase customers and increase the company's brand recognition, a company must provide a believable and clearly stated value proposition that accurately describes the product or service being offered. Providing consumers with precise convincing reasons on why they should buy a product or service is a good way to draw them into making a purchase. The overall customer experience should match the promises the value proposition makes. If it does, the company gains credibility and customers and the value proposition was a success.

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