Creating a meaningful value proposition has a simple step-by-step process, and it all stats with spending ample time observing what your identified customer’s experience. Make sure to physically write down or type each and every answer to the questions in this process.
Step 1: Identify what matters to your customer. Try coming up with at least three items for each question. (10 minutes)
1. What tasks are they trying to complete?
2. What problems they are trying to solve?
3. What needs they are trying to satisfy?
Step 2: Identify your customer’s pain points and what they absolutely hate! Make sure to write down everything that comes to your mind. (15 minutes)
1. What loses have your customer experienced in the last year? In the last month? In the last week? In the last 24 hours?
2. What risks does your customer regularly have to take?
3. What negative experiences has your customer experienced?
Step 3: Identify the gains your customer would like to receive by using your product. (10 minutes)
1. What outcomes are your customers looking for with a product or service?
2. What benefits are your customers looking for with a solution?
3. What would surprise your customer if it was included in a solution?
Step 3: Start outlining your product or service offering on both a practical and emotional level. (10 minutes)
1. What possible ways are there to bundle your product offering?
Step 4: Identify how your product alleviates your customers pain points. Before, after and during trying to get the job done. (10 – 15 minutes)
1. While your customer is conducting a task, how does your product or service remove a their pain points?
2. How does your customer feel after using your product?
3. What customer pain points are not addressed by your product or service?
4. If there are customer pain points that are not resolved by your product or service, is it necessary to reducing your product to address those?
5. Will addressing these pain points add value or unnecessarily increase the complexity of your product?
Step 5: Identify the actual gains your customer receives by using your product. (10 minutes)
1. What are the positive benefits our product creates for EACH gain?
2. How does using your product or service relieve your customers frustrations?
3. How does your customer feel after using your product or service?
Step 6: Review all the answers you wrote down and create your value proposition. (10 minutes)
1. What trends are you seeing with each of the answers?
2. What three independent states address what you discovered by engaging in steps 1 – 5.
3. Which of the three statements you wrote down best describe the value you add to your customer? That’s the value proposition your should start working with.
4. Refine your value proposition, as needed.