Today, we just felt to go back into one of our old study series. So, welcome to the 6th part of Startup Week Series where we discuss on building value proposition of startups.
In one of its simplest forms, a value proposition can be like a positioning statement that explains what benefit you provide for who and how you do it uniquely well. It describes your target buyer, the problem you solve, and why you’re distinctly better than the alternatives.
Here comes the dilemma in front of entrepreneurs, where to focus on as in the beginning of the business most important thing is entrepreneur is passionate about solving problem and idea start dawning and one succeed to overcome other idea. And here paradigm shift in the mindset of entrepreneur starts happening. Now focus shift from solution to the customer to ‘the chosen’ solution! Entrepreneur starts defending how best is this ‘chosen’ solution over other. This is conviction, passion, motivation, inner drive and fuel to succeed, drive to do impossible, even achieve something never achieved earlier.
Brand Building Process
Brand building process starts only when you converse with the customers and understand their needs. The company should clearly define two things: What they want to stand for? And who do they believe? The answer should be authentic and honest. The job does not end with claiming that you are the leader in the space, but the behaviour or the representation towards the target consumers are very crucial.
Lack of harmony in serving the customers easily gets noticed sub-consciously or psychologically. Because consumers will never express their likes or dislikes towards a brand, but the way they react will determine the authenticity of a brand.
How to Find You Are Unique
Competition analysis is not for the purpose of copying a bunch of stuff you think is working. Instead, your analysis to discover where the competition falls short, and where you are strong.
The quickest way I think to find this is by performing a SWOT Analysis on yourself and your direct competitors.
No matter what industry you operate in, consumer behavior research shows that there are three groups of buyers who can be characterized by the “pain” they experience when purchasing something.
Neuroscientists have defined human spending patterns as a process of “spend ‘til it hurts,” so understanding these different levels of pain points is essential to maximizing your potential sales.
Your value proposition should come from what you do better than the competition, not from forcing copywriters to be clever.
Look at the weaknesses of your competitors & ask yourself:
- Is your website easier to use?
- Can your product be better tailored to the market?
- Do you have a kick ass customer service team?
- Is your return policy or customer guarantee superior?
- Are your prices lower?
- Do you have faster shipping options?
- Is your atmosphere better?
- Realistically, there will be problems you can’t solve.
For example, if you can’t offer free shipping, and the competition can – that’s not a good value proposition, and it could hurt you if you tried to force it without a plan. But being more knowledgeable, having a friendlier staff, or a cooler inventory, are things you could work in to a unique value proposition.
If your value proposition makes the benefit immediately apparent to the customer, you’ll be a step ahead – because everyone else is still trying to compete on features.
Retaining The Brand Position
When a company defines what it stands for, it also decides certain steps that need to be taken to build and measure the brand. For example, understand how your customers perceive your brand. Find out if they are coming to you for a specific product that defines the brand’s unique selling proposition (USP). Luring the customers by creating value additions to the products helps in establishing a leadership position in the market.
Regardless be true to yourself, trust in your potential and be fearless in exploring it and remember there is no failure, only learning.