Customer Value Propositions
Attract, engage and retain the right customers with your Customer Value Proposition (CVP).
Do you know why people love to buy from you? If not you may be struggling to attract the right customers. It is through your value proposition that you can gain a competitive advantage and increased ROI from your branding. In an increasingly competitive landscape, where time is of the essence, a customer value proposition quickly conveys through messaging how your products and services are different from competitors. It conveys the benefits you bring to your customer. A strategic process, creating a CVP is the foundation of your Brand. It is a messaging platform that underpins your business strategy and therefore helps you attract, engage and retain the right customers to help you achieve your business objectives.
A CVP definition sums up ‘why choose you’.
It should be authentic (a promise you can deliver on), differentiating (sets you apart from competitors) and relevant (resonates with your ideal customer/client). Building your brand through these strategic pillars ensures alignment with your marketing and business objectives.
Your customer value proposition helps drive sales by making the purchase decision easier. To create an effective CVP, you need these essential ingredients:
1. Know who you are: First, it is essential to know the primary purpose or what the organisation does to thrive in a given market. This will help identify your strategy to grow as a company and set you apart from competitors. In addition, it will also help to create a compelling mission statement and customer message.
2. Customer understanding: Knowing your ideal customer is key to developing your CVP. A product or service offers different relevance and therefore benefits for different types of customers. By clearly defining your ideal customer profile, you will more likely be able to craft a compelling and successful CVP.
3. Product or service benefits: The customer benefits or the advantages of using your product or service are essential foundations of your CVP. The clearly and more quickly the customer understands why utilising your product or service will benefit them, the more likely their purchase decision becomes more straightforward.
4. Point of differentiation: The easier it is for your target audience to know the exact difference between using your company's product in comparison to competitors, the more brand loyalty it will help build. The customer value proposition clearly defines the point of differentiation and how improved the customer's life becomes after using your product or service.
Your Customer Value Proposition defines the value exchange for the benefit of the customer. Your unique proposition helps to differentiate one offering from another.
The importance of a strategic-led customer value proposition lies in the following fundamental characteristics below:
1. CVP tells customers why they should buy your products or services
2. CVP helps define marketing communications messages across various media channels
3. CVP helps improve customer loyalty and ROI
4. CVP helps create brand differentiation in a given market
To give your CVP meaning, you have to start with research.Both qualitative research (think interviews and focus groups) and quantitative (think surveys and statistics), can add immense insight as to how your business, product or service is perceived. Without this your brand is flying on assumptions which can be very costly. Add to this further with market research that looks into industry and macro trends plus how your competitors are positioning themselves – now you have context! Only through evidence can your CVP can be crafted to be authentic, relevant and differentiating (rather than just nice-looking).
While every CVP is unique, we follow a proven framework built from the ground up.
To enhance the ‘values-matching’ exchange between brand and customer, you need your CVP to be crystal clear. Crafting a compelling customer value proposition requires a strategic approach. While businesses vary greatly depending on the industry, target audience needs and product offering, there is a best practice process that helps you compose a successful value proposition;
1. Analyze the perception versus reality gap of customers and potential customers as to what they see are the benefits.
2. Analyze the competitive landscape. Define the strategic ‘white space’ that only your brand can own.
3. Based on data, write 3-4 strategic messaging pillars that are authentic, relatable and differentiating.
4. Test the CVP with business leaders and your customers. Refine.
5. Apply your brand’s tone of voice to make your CVP more ownable.
Once you’ve created your distinctive CVP messaging, the next step is to add a layer of visual story-telling around it. This is your brand – be it for a business, product or service. As experts in branding, we conceptualise different creative approaches based on your CVP, including a Tagline (short punchy positioning statement), to help share your unique story to all your key stakeholders; internally and externally. Your branding must be flexible enough as it speaks directly to your various target audiences through the complete life-cycle; from awareness, engagement, consideration, purchase, retention and advocacy. We can help you embed and operationalise your brand through all your customer touchpoints.
Ready to win customers who become brand advocates?
Businesses have different approaches to creating value propositions. Companies must develop a compelling customer value proposition to ensure their product or service is effectively communicated to prospective customers, highlighting its unique benefits.
Belong Creative helps companies craft a relatable CVP that attracts the right customers. To know more about how we support brands to win customers through their CVP, schedule a consultation with one of our experts today!
What is Art Direction you ask? Here’s an analogy that will explain the role which Art Direction plays in the realm of advertising and communications (plus it will probably make you hungry at the same time).