The success or failure of the growth strategy of a business can have many explanations. But there is a factor that, in most cases, defines the results: the so-called value proposition for the consumer (or CVP, by Consumer Value Proposition).
This is a fact about which we usually work long before starting with the company, but we forget as time goes by and we gain the pressure of the daily operation. And that is a big mistake, since the CVP must be reviewed permanently. Only in this way can we ensure that we are in tune with the market changes, meet the new demands of our clients and have a solid positioning strategy.
These first days of the year, in which perhaps many of your clients are on vacation, are ideal for a reflective exercise on why your current consumers choose you and why others prefer the competition. Therefore, we prepare this list of 5 key questions that you should ask yourself to review and adjust the value proposition of your business.
1. What problem or need are you solving?
One of the fundamental lessons for an entrepreneur is that the most important thing is not your product or service, but the solution offered to a person or business. Clear that the demands of the market, and even the expectations on price and quality, can change throughout the time, or by the technological advance, changes in the economy, new tendencies or the appearance of new competitors.
2. Who is your client?
This includes those people who buy you, but also those who chose the competition. And above all, those ideal consumers for the profitability of the business: that is, those who are willing to pay more for your products or services, and at the same time they will cause you less problems. Check the profile of buyer of your brand taking into account the following parameters: age, sex, place of residence, occupation, income level, consumption habits, family group, main topics of interest (politics, music, sports), hobbies , style of dress and all those details that allow you to individualize your client to the fullest.
3. How are you solving the demand of your consumers?
In general, a problem or need has more than one solution. For example, if someone wants to consume organic tomatoes, you can buy them in a specialized market, in the supermarket, online, and even install a home garden. Through what processes is your company serving its customers? Are they satisfied, or have complaints increased significantly? What are the points of the production and delivery process of products and services that need to be reviewed?
4. What is the relationship of the brand with the customer?
Shared values, trust, empathy and feeling heard are decisive factors for a person to choose a certain product and become a loyal consumer. How would you define contact with your customers: close or cold? Do you maintain a fluid communication with them? Who are the ambassadors of your brand? (salespeople, public relations, influencers) Are you aware of the level of satisfaction with your products and the attention on the sales floor?
5. Are you better or worse than your competition?
As sure as you are about your value proposition, you will always face the latent possibility that your offer will be replaced by that of the competition. Do you have a complete list of who are fighting for the same market segment as you and offering a similar solution? What are the advantages and disadvantages of your products and services? What improvements or innovations did you not take into account, and are they jeopardizing your position in the market?