The value proposition is the category that needs the most attention of the business. In some cases in the B2B market, customer value propositions directly affect:
- Connecting with customers’ business.
- Prestige and perception of the business.
- Existence and growth of your business.
As a supplier, you need a long term business strategy and the right mindset to deliver an optimal value proposition in the B2B marketplace.
The importance of customer value proposition
The customer value propositions for B2B businesses are demanding. It should both provide value for the business, and satisfy the connectivity between the business and its customers.
A strong value proposition results in:
- Minimize customer losses
- Increase sales
- Faster marketing time
- Improve productivity
- Increase market share
- Improve customer retention
For businesses to accept “pouring money” into their products or services, a proposal of optimal value is crucial.
What is the customer value proposition?
The value proposition is the Vietnamese meaning of the term: Value proposition or Customer value proposition. A commitment, a promise of a product’s benefits. The value proposition is also known as the value proposition or value proposition.
A customer value proposition describes the advantages that customers can expect from your product or service. The customer value proposition is a simple, clear, understandable statement of the benefit a customer receives from using the service.
A value proposition must come from market demand. It must both address the customer’s existing problems and fulfill the user’s potential needs. This shows that the value proposition drafter has to be someone who knows what their customers are looking for and what they will need.
In the B2B market, the value proposition is also the belief of the business when it comes to buying products and services with the desire to optimize costs and maximize profits. The customer value proposition is considered a guideline for sales strategies, a bridge between businesses and their customers.
A poor customer value proposition
Many businesses have trouble determining their value. They cannot convey to customers what benefit this product is, is suitable or not, is it worth it. This makes the brand’s value and image obscure in front of potential customers.
Remember, it is better to have no better than a poor customer value proposition.
Here’s a value proposition for a web designer:
“We partner with our customers, enhancing their online marketing, web strategy, and online campaigns. We are dedicated to building long-term relationships through superior customer service, beautiful design, advanced programming, and implementing SEO / SEM best marketing practices. “
The proposal above does a great job of demonstrating how efficient and optimized the provider is. But one crucial factor is missing. The suggestion above does not say what the supplier will do for its customers.
Looking deeper into the problem, this proposal does not demonstrate an understanding of the business areas and challenges facing businesses.
The prerequisite of a good value proposition
A good value proposition should have three things:
- Value: Specific benefits that customers receive.
- Relevancy: Service product solving a customer problems.
- Uniqueness: why customers should choose your products, not your competitors.
A value proposition is not a race for letters. They need to be presented in the closest way to the customer. Customers need to easily understand what you are trying to convey to them.
In terms of form, when posting on the website of the business, the value proposition the customer should have:
- Title: Describe the final benefit you want to address to the customer
- Subtitles: clearly state what your products and services provider, to whom, product differences, and competitive advantages, …
- Key benefit statements: Strong statements about the positive influence a product or service has on the customer’s business.
- Visual factors: Images, videos to add appeal to your value proposition
Three levels of the customer value proposition
When your client is a B2B business, the value proposition isn’t just about optimizing the benefits and saving costs but also overriding the competitor’s proposal.
You – the client manager needs to clearly distinguish three elements of value in order to design and choose the right type of proposal. The three factors of value include:
- Equilibrium score: The same basic factors and values as the competition.
- The difference: The factor is superior or not comparable with other customers’ options.
- Debate point: Factors that you and your customers need to agree on.
According to James C. Anderson – Professor of Distribution Business at the Kellogg Northwestern School of Management, James A.Narus – Professor of Marketing at Wake Forest University, Wouter Van Rossum – Professor of Commercial Management and Strategy at the University Twente school, The Netherlands. Split the value propositions into 3 levels. These three levels correspond to the following three types of recommendation.
Level 1: All benefits
This value proposition includes all the customer benefits that come from your product or service. This proposition answers the question “Why ought to our company acknowledge your proposition”.
With this recommendation, you only need to list as much as possible the value that the product or service can bring to customers. This type of proposal requires a bit of acumen and minimal knowledge of customers and competitors.
Because of its simple structure and easy implementation, the cost of this proposal is less than the other two proposals. However, this simplicity has a major downside: The advantage is not asserted.
With all the benefits suggested, your customers will not know what is the outstanding advantage of the product or service you provide. Without highlight, your proposal cannot impress your customers.
A proposal from you can include many benefits from technical, economic, social, service, … delivered to customers. But keep in mind that competitors can make such proposals.
Level 2: The vantage point of the difference
Overcoming the disadvantages of the above method. Claiming customer value by stating the vantage point of the difference makes your business proposal more valuable.
The value of difference includes all the advantages of differentiating your product or service from the next best alternative. The next best alternative is the value proposition by the rival company.
The difference vantage point answers the question: “Why should our company accept your proposal instead of accepting the proposal from your opponent.”
In order to apply this recommendation, you first need to have a clear understanding of the customer’s industry and business. Furthermore, in order to propose a difference, you need to understand the competitors’ other alternatives.
Level 3: Focus on resonance
Proposed resonance focus includes an equilibrium point and two, three distinct points. The value factors all bring the greatest value to customers in the near future. This proposition answers the address “What is the foremost profitable thing our company ought to be beyond any doubt around your proposition.”
Proposing resonance values requires that you grasp the key issues of the business of your client’s business.
Business clients need value propositions that are simple yet powerful and attractive enough. Customer insights are an indispensable factor when drafting proposals.
The concentration of the proposed values is very effective, but not easy. You need to do customer equity research to gain insights to build them up.
For an attractive value proposition
A good value proposition is not enough for a B2B firm. What they expect is a convincing value proposition. To get this, you need:
- Understand customers’ business.
- Prove your values to declare your worth.
- Documents worth transferring.
- Turn value proposition into a key business skill.
Before you target B2B businesses, you need to target their customers. Meeting customers’ needs while minimizing costs is what businesses want.
You need to outline a value proposition based on your client’s needs. The sketch helps ensure that the product or service is positioned around what customers value and need.
The canvas model is a suitable value framework for businesses to understand both the existing and potential needs of customers.
Prove customer value proposition
How do you convince your customers to pay a premium for the service your company deserves? It’s not just a simple proposition that is persuasive. You need to be able to prove and document them.
A few notes to make your values more convincing:
- Note the language used: Use popular and popular words. It is best to use the language of the customer.
- Use equations of values in the text. This allows you to spot the differences between you and your competitors.
- Get the data evidence. This shows that using your product or service really saves money or increases revenue for the user.
Best value proposition example
The customer value proposition is an important element of your business’s marketing message. The following are the units with highly effective value propositions for the user. You can view it as a reference for your value proposition.
Not too successful in the Vietnamese market though. But Uber’s customer value proposition is unique.
In its first appearances on the market. Despite being a new product or service, Uber has professionally shown its appeal. The convenience of the ride-hailing application is at the forefront such as:
- Tab the app, get a ride
- The driver knows your location
- Cashless payment
Compared to the traditional ride experience, this convenience of Uber has left a good impression on users. At the same time ushered in the era of smart ride-hailing application.
Iphone – The Experience IS the Product
“Experience is the product” – This aspirational message is also Apple’s value proposition. Apple product lines are always welcome and occupy a large market share of smartphones.
Apple products are known for their beautiful, elegant, and elegant designs. Iphone affirms its value through a simple aesthetic foundation, compact, full of sophistication.
The company “apple” understands that only focusing on the unique features of the Iphone is not enough. So, instead of focusing on a particular feature, the company chooses to focus on the user’s product experience.
Apple’s value proposition is just as unique as its approach to product features and aesthetics. Recommended by emphasizing the overall experience of using the product.
The above are customer value propositions in the B2B market. We hope to bring you new and useful information. Any additional comments or suggestions please contact or leave a comment below the article.