Help Your Business Find Its Voice: Value Propositions Explained  

2024 is just a few months away and, as we head into a new year, it’s a good time to think about what it is that makes your business your business. What part of your brand stands out in its industry?

The best way to answer this question is conducting a differentiator value proposition (DVP), a marketing strategy that is all about a company setting itself apart from competitors by highlighting what it is they do that others don’t.

This is essential not only for the health of a business but also its ability to thrive. When a business is able to zero in on the key reasons they should be who the customers buy from, they can efficiently target their audience and goals as well as drive sales and ultimately growth.

Below is a break-down of a successful DVP:

Identify What Makes You Special

How well can you tell someone what makes your business special?  Can you put your thumb on it?

Business owners usually start their business to address an unmet need in a certain industry. For a successful DVP, it’s time to dig into the roots of how the company addresses the need and why they are better than any other company at doing so. Think about what technology or method you use to achieve these results.

An example of the proper DVP brainstorm is filling in the blanks in the following:

“Our company is able to solve ____ for our customers in the ____ market because we offer ____  through the application of ____.”

By the end of the exercise, you should be able to pinpoint:

• The competitive advantage you offer your customers through your product or service
• Who your target audience is — what is their demographic, their purchase behavior or their generational footprint?  In industry jargon, you need to develop your Ideal Customer Profile (ICP).
• What makes your products or services relevant no matter the climate?
• Why should your customers choose YOU?

Honing in the Numbers

What many often forget is that unlike a marketing tagline or slogan, a DVP is all about putting words to action. In other words, you need proof.

It may take time to get the numbers you need to prove why your business is the best of the best, but statistics, data and especially customer stories go a long way in developing the trust of a new customer (who doesn’t love a good story?). For example, is your service able to be completed twice as fast as others in the market? Do you have 100% satisfaction among customers? Does your product last 3 years longer than others?

Whether it be sending out customer surveys, collecting quotes from other established companies, conducting customer interviews in person, testing your products against the statistics shared by a competitor and proving their competitive advantage, or getting endorsements, work to get the numbers you need to position your differentiator value proposition effectively.

Understanding What Makes a Unique Value Proposition

In 2015, Microsoft proved that we now have the attention span shorter than a goldfish: you can lose a customer’s attention in about 8 seconds.

This means your DVP has to win them over in 7 seconds to truly seal the deal.

Let’s take a look at what consists of a proper DVP:

1. Clear, concise and impactful— leave no room for questions 
2. A customer should understand why your brand is different from all the rest
3. A customer should see precisely why your product or service benefits their life
4. There are no bold claims or opinions or marketing slogans— just facts
5. It’s broken up with visuals and bullet points and able to be read in 7 seconds or less

Publishing Your Ultimate Message

One more gentle reminder: your DVP is not a slogan like Nike’s “Just Do It” or marketing ploy like “Never seen before results!”. This is a factual, clear and in-depth proposition as to why a customer should choose your product or service. It usually lives on the landing page of your brand website and takes a customer through the journey of your brand.

Convince them they cannot live without you, through facts, data and analysis that is digestible — and direct. Usually, the most effective propositions start off with a powerful headline, offer specific explanations, use bullet points to offer short, impactful snippets of data and employ visuals to share the exact use of the product or service.

Everyday we use countless products or services because they satisfy a need and are easy and convenient. What brands, products or services can you think of that have done a phenomenal job at defining their DVP?  Netflix?  Nike?  Uber?  Apple?  Amazon?

Working with a Trusted Fractional CFO

Identifying and defining your DVP and being able to ensure you track how well it brings in revenue can be a complex task. This is where your Fractional CFO becomes a crucial and valuable asset. With financial expertise and acumen, they can help you evaluate your product or service from a financial perspective and identify the unique features that can be leveraged to create a compelling DVP.

More importantly, CFOs like those at AETucker Consulting can source the gaps your business is presently experiencing and see where the miscommunication between customers and the business value begins. Once identified, your CFO can not only work to ensure your DVP reflects the current realities of your business, but also they can tell you how to get the proof of the numbers (see Honing in the Numbers section) and how to track them for future KPIs.

To this end, your CFO can develop a clear and concise differentiator value proposition for you that will resonate with your target audience, help you stand out in a crowded market, and help you establish yourself as a leader in your industry.

To learn more about AETucker Consulting and how we can be of service to ensuring your DVP is done right, please visit my website, aetuckerconsulting.com and schedule a complimentary and confidential conversation today. I’m a phone call, email or calendar invite away!