The goal of any business is to know its potential customers and what are their specific needs and problems. Then create the appropriate product or service that provides them with a specific solution to their problem and satisfies their needs. In order to persuade potential customers to interact with the brand’s products or services it’s important to give them a value proposition.
What is a Value Proposition?
A value proposition (or value prop) is a clear, compelling statement that explains how your product or service benefits potential customers or a specific market segment. This is the value that your customers will get from the product or service your company offers that they can’t get from your competitors.
An effective value proposition should give a reason for the consumer to purchase the business’s product or service. The statement should include a clear and precise description of why this product or service is the best choice. That is, how could this product or service help customers by answering their needs?
It’s easy to confuse a value proposition with other similar brand assets, such as tagline and slogan.
What is the difference between Value Proposition, Slogan, and Tagline?
All of these three components: Value Proposition, Slogan, and Tagline contribute to increasing the brand’s image and promoting benefits or value to the customer. They have different meanings.
The value proposition informs the target audience of the unique value and benefits of the product. For example value prop of the Coca-Cola Company is that it “gives us a unique experience of happiness.” The brand is uniquely associated with happiness and family meetings through positive attributes like sweet taste and the main benefit of promoting happiness.
Slogans are shorter, attention-grabbing phrases designed to generate brand recognition. They are used in advertising to promote a brand, product, service, or idea and for each product or campaign, there are different slogans.
For example, one of the best well-known slogans of the Coca-Cola Company is “Open Happiness.”
A tagline represents a concept or idea that your business stands for. Most of the businesses have only one tagline that is connected to their brand and makes them recognizable.
An example of the Coca-Cola Company tagline is “Taste the Feeling.”
In the example of Coca-Cola Company the purpose of its value proposition, tagline, and slogan is to bring positivity into people’s lives through its products. By evoking in people emotions such as delight, refreshment, and happiness.
What is the purpose of the Value Proposition?
The purpose of the value proposition is to convince investors or customers that the company or its products or services are worthwhile and stand out from the competition. By highlighting the unique selling points (USP) of the business, you will be able to create a well-defined value proposition that will lead to customer preference.
If the value proposition is weak or unconvincing, it might be difficult to attract and retain consumer interest. This would lead to losing market share to competitors, and ultimately impacting the product’s or service’s success.
Conclusion
For a value proposition to be effective is important to identify and address customer needs, based on which you will create or modify your product or services. This will give a reason for the consumer to purchase the business’ offerings.
