Once in a while, an idea so good comes along that investors jump, employees get excited, and customers can’t buy enough. What makes that concept worthy? It's part of a comprehensive business strategy, executed at the most opportune time.
At the heart of a sound business, planning is the concept of a value proposition – the commitment that the organization will provide value and that customers will feel its worth. A value proposition can apply to an entire organization, or specific sectors, such as product distribution or operations. A value proposition could also be applied internally to an organization’s employees, or externally to vendors and customers.
Let’s look at examples of value propositions:
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Products and services that utilize new technology have the potential to innovate entire industries. Organizations bold enough to demonstrate the value proposition of innovation take risk but have the potential to lead the cutting edge of technology.
The value proposition of speed can give companies working in a local market the advantage of winning bids and keeping customers. Mid-size companies who can maintain rapid delivery can successfully compete in larger markets.
In the marketplace, agility is the ability to change direction rapidly at the first sign of economic, social or legal constraints. Because market conditions fluctuate, being adaptable is the difference between thriving and going under.
Is your business available 24-7? Have you removed all barriers to potential customers accessing your goods and services? Dominate the value proposition of accessibility by serving local demands and utilizing technology such as mobile marketing and social media.
5. Bang for the Buck
The value proposition of bang for the buck is about providing quality service for the cost charged. Businesses who demonstrate this value proposition to their customers consistently outperform competitors who charge more but can't explain why.