Value proposition: What it is and how to create one for your company

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proposta de valor INT


Being the first choice in a competitive market is always cause for celebration. Especially in times of economic crisis, it is crucial to understand what leads the user to choose your service or product instead of the competitor’s. It is hard not to follow the easy road and think, “My company has the best products in this market segment” or “I offer the best experience for my client”. More than acquiring something, the consumer needs to see value in what is being offered, and this process is based on the needs and expectations of the client – and not on the aspirations of the company. Learn how to be assertive when developing value propositions to turn your prospect into a loyal customer.  



First, you need to understand what it means to create a value proposition for your business. By definition, it is the sum of the benefits that customers can expect from your business, consisting of items that have virtues for a particular market segment and, consequently, generate the perception that an offer is valuable enough to be worth of engagement.
Successful negotiation depends not only on how good your product or service is, but also on the consumer’s perception of the value of your brand and what you are offering. It is necessary to explain the characteristics of what you offer, making clear its differential, so that the potential customer understands that your product or service is the most suitable to meet your needs.



And how do you come up with a result that adds value to your business, attracting potential customers? The consumer will only have the exact perception that your business is the best choice when the value proposition is developed from the perspective of your target audience. This is what Steve Blank, a renowned Silicon Valley entrepreneur, calls Customer Development Model. Assertiveness is the keyword to speed up your business.

Customer Development is a business model that consists of a continuous process of interaction with the consumer, which aims to test and validate your assumptions about customers, product and market, based on quantitative and qualitative research. That is, you must listen to the customer. Use empathy, step into their shoe to understand them and create something that they really want.



In order for it to be effective, your target audience must readily grasp the value proposition you are communicating, that is, you must use the same language to bring them closer and humanize the speech. Interview them, use social networks and step into the customer’s shoe, to better understand the kind of experience he has – or hopes to have – with your business.


Ask the following questions and evaluate whether your current value proposition can answer them:

1. What product or service does your company sell?
2. What is the main benefit that your company offers?
3. Who is your target audience?
4. What makes your offer unique and different?


The answers will guide the development of your proposal, which can be supported by the following guidelines:

1. Define the benefit you are offering in a short sentence;
2. Make a two to three-line paragraph that explains what you do, who will acquire it or why it is useful;
3. Make a brief list of the key benefits or services you offer;
4. Use images that reinforce your main message


Know your competition, step into the customer’s shoes, be clear and brief. A reliable value proposition should include its relevance, differentiation and the benefits of your company to customers.

Innovation in Business Model

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