What do we promise our customers? Hopes? Dreams? Money? Usually, it is the first two words, but they way we implement it - it's magic.
A value proposition refers to the value a company promises to deliver to customers should they choose to buy their product. A value proposition is also a declaration of intent or a statement that introduces a company's brand to consumers by telling them what the company stands for, how it operates, and why it deserves their business.
A successful brand shapes customers’ experiences by embedding the fundamental value proposition in offerings’ every feature. For BMW, “the Ultimate Driving Machine” is much more than a slogan; it informs the company’s manufacturing and design choices. In 2000, Mercedes-Benz introduced a system that automatically controls the distance between a Mercedes and the car in front. BMW would not consider developing such a feature unless it amplified rather than diminished the driving experience.
This statement, if worded right, convinces a potential consumer that one particular product or service the company offers will add more value or better solve a problem for them than other similar offerings will.
- A company's value proposition tells a customer the number one reason why a product or service is best suited for that particular customer.
- A successful value proposition should be communicated to customers directly, either via the company's web site or other marketing or advertising.
- Value propositions can follow different formats, as long as they are "on brand" and unique and specific to the company in question.