The Value Proposition



The Value Proposition


While working at my last job, I was in charge of email communications that would be sent out to a large distribution list. The company sent out usually one to two mass-distribution email a week announcing events, promotions, and reminders. With so many emails going out, it became very easy to write up a quick note that announced the event with the general details and leave it there.

After one such email, I got a phone call from a friend who received the invite to an event. He kindly said, “Kyle, I get invited to events all the time from you guys, but I need you to know I will not be going to this one. It’s not that I don’t want to, but your email gives no value to why I should attend. It simply told me the name of the event, where it was, when it was, but never told me what value I would receive in attending.”

This honesty was humbling, but so helpful in understanding how critical it was to attribute value to what we do and what we invite others to participate in. Attributing value is known in business strategy as creating a value proposition.

Developing a value proposition is based on a review and analysis of the benefits, costs and value that an organization can deliver to its customers, prospective customers, and other constituent groups within and outside the organization. It is also a positioning of value, where Value = Benefits – Cost (cost includes risk)

A strong value proposition does more than just tell your potential client why they should buy your product or hire you for your services. It clearly defines why you are the best solution for their needs and what they will receive in return that goes beyond the immediate need. If all business transactions are a give and take exchange then a value proposition needs to communicate what the incentive is to give time, money, or resources in exchange for coming to the event, buying the product, or receiving the service.

To create value proposition, think of yourself in the mind of the buyer. If you truly have the best product out there or this is an event not to miss, then what would convince you to buy it or show up to the event? Sure there are some traits that are unique to you, but think generally. What sets this product apart? Why is this the best conference to attend on the topic? Create a simple answer. Tie that answer to your marketing, your promotional materials, and your communications.

For more on this topic, check out this article by Kinesis marketing.



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7 responses to “The Value Proposition”

  1. jordan caballero says:

    great post kyle. value is so important with all of the noise online and in the blogosphere. i try my best to keep that in mind with all of my interactions.

    • admin says:

      jordan, thanks for the read and comment. Working with ya to cut through the clutter and offer real value to our clients! How is NuSol going?

  2. Deborah says:

    What a wonderful message! In my own business, i frequently with draft the same sort of mass messages you are speaking of … and sometimes find limited repsonse. Keeping “value” in mind is something I think my team may sometimes overlook, so thanks for the reminder! Great blog. Thank you!

  3. Kevin D. says:

    great article!
    I never knew it was actually called ‘value proposition’, but I have seen this principle used by almost all successful companies. Good example is one online guitar learning website I came across, that allowed free some free lessons and a weekly newsletter. Every newsletter was full of usefull info and an invitation to join the full membership. Of course the benefits of doing so were clearly outlined. I was convinced this is the best offer. I was convinced that I will benefit. At the end of it, I eventualy signed up for full membership, and don’t regreat it by a bit! 🙂

  4. Ernesto88 says:

    Good article.
    I guess this principle, the value proposition, aplies in all types of senarios and situations.

    Unfortunately, it is quite hard to convince the potential customer/stakeholder that this particular deal or offer is the best of the available ones, as every single service or product provider wants to achieve the same goal, – a strong value proposition in relation to other providers of a similar product or service.

    So I really believe that if you want to be successful, you got to invest much creative, analytical, psychological, intelectual and social type of thinking to come up with the best possible plan that would result in the highest possible value proposition.

    Sorry, if I expressed my thoughts in a confusing manner 🙂

  5. Unfortunately, so few companies put themselves in their customers’ shoes. I think that is one of the things that makes companies like Zappos so successful. At every level of their organization, they communicate the value they provide to their customers.

  6. Emma says:

    great post ! value is so important with all of the noise online and in the heliosphere.

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