Product value proposition. Why is this critical in getting user attention?

Hello 👋 Marketing Context Fam!! Welcome to this week’s edition.

In todays edition of startup marketing deep dive we unpack a critical startup marketing process of “Designing product value proposition”. We will cover:

1. Why designing an impactful value proposition important

2. Unpack the core concepts

3. Look at an example

4. Role of a marketer

5. Resources

THE CONTEXT
Why many startups fail in getting their value proposition right.?

In my recent interaction with a startup founder, Jacque, I realised that Jacque had  an amazing product idea at hand with incredible potential. The challenge was, Jacque and his team's inability to articulate his product's value. Result, his potential customers were sailing right by his product and he was finding it difficult to get early users to try and validate his product

This is not an isolated problem and I have found many founders in the same spot. Why is this such a big problem where is the gap?.

Most founders and early marketers struggle  to approach value proposition as a system or a process. It involves a deeper understanding of your market and uses and also your ability to articulate it.

In this article we will unpack the process.

Why this matters

Think of your value proposition as your product's elevator pitch. In a crowded marketplace, you have mere seconds to capture attention and articulate the problem your product solves, the benefits it delivers, and why it's superior to alternatives.

A compelling value proposition has a phycological impact due to its functional, behavioral and self expressive benefits for the end user.

THE DEEP DIVE
Unpacking the value proposition strategy?

Before we get down to designing a value proposition for your product, it is critical to first understand the key components and the derived insights which then forms the foundational elements of a good value proposition.

Let's break down the key elements

Target audience: 

Who are you trying to reach? Understanding their demographics, needs, and pain points allows you to tailor your message effectively.

Once you have your target segment understanding, frame the segment that your product can best serve. This should lead you to your ideal customer profile (ICP), detailing their characteristics and needs

Customer problem:

The customer problem is a critical priority of the "Job to be done" mission of your target audience and if the problem is not part of the mission then it might not be critical enough.

Underline the struggle with the specific problem. It should highlight/reflect the frustration, roadblocks and the anxieties your customer experiences with the current solution or the lack of it.

Value delivered: 

How does your product alleviate their pain point? outline the outcomes and the benefits that your product offer.

Product & service highlights:

Here is the chance to highlight the features and the functionalities of your product that address the defined needs. Focus on how your product's features deliver the desired benefits. Explain the specific mechanisms at play

Differentiation

What makes you unique in relation to the user need as well as competition

Designing the Value Proposition Canvas: A Practical Tool

A good value proposition should be framed on the benefits of time saved, money earned, improved efficiency, or enhanced user experience.

The final output can be a single core benefit or a combination of any of the above factors.

STRATEGIES IN ACTION
How to use the value proposition findings?

Lets consider a hypothetical product: "SpruceUp," a mobile app that connects busy professionals with reliable cleaning services.

What does the customer desire?

SpruceUp customers crave a hassle-free and convenient cleaning service that frees up their valuable time and eliminates the stress associated with finding and managing reliable cleaning professionals.

The key findings through user research:

• Customer segment: Young professionals, families with dual-income earners, individuals with limited time or physical limitations.

• Jobs to be done: Finding trustworthy and efficient home cleaning services without spending hours researching and comparing options.

• Pains: Unreliable cleaning services, inconsistent quality, inflexible scheduling options, hidden fees, difficulty in managing bookings and payments.

• Gains: A clean and comfortable home environment, reduced stress and time saved, transparent pricing and secure payment methods, convenient scheduling and seamless booking experience.

• Products & services: Geolocation-based search for verified cleaning professionals, detailed profiles with customer reviews and ratings, online booking with quotes and secure payments, in-app communication tools.

• Gain creators ( the how behind SpruceUp): SpruceUp utilizes a vetting process to ensure cleaner quality, offers flexible scheduling options, and provides a transparent pricing structure. The app facilitates seamless communication for managing bookings and ensures secure transactions

The product outcome statement:

Now based on the above finding lets draft the "product outcome statement" this statement addresses the stakeholder requirements ( for SpruceUp's product as well the customer needs)

"SpruceUp isn't just about connecting you with cleaning services - it's about regaining control of your time and creating a stress-free haven in your own home. Through our vetted professionals, flexible scheduling, and secure platform, SpruceUp delivers a seamless cleaning experience that allows you to focus on what truly matters."

Key elements of the outcome statement:

• Emotional connection: The statement emphasizes the emotional benefit of a clean and stress-free home environment.

• Focus on benefit: It highlights the key benefits of SpruceUp – time saved, reduced stress, and a seamless experience.

• Differentiation: It subtly underscores the aspects that differentiate SpruceUp from competitors – vetted professionals, flexible scheduling, and a secure platform.

• Clarity and concision: The statement is clear, concise, and easy to understand for the target audience.

The outcome statement speaks directly to the aspirations and frustrations of the target audience, and also effectively communicate the core benefit of the product. This helps position SpruceUp as offering the best cleaning services; as well as addressing the broader emotion need for– saving time and peace of mind.

This shift in messaging can now be used to differentiate SpruceUp's offer and elevate it's value proposition. and positions it as a trusted partner in achieving a desirable lifestyle.

Anchor for the value proposition statement:

The product value proposition should anchor on the best value that your product offers to your target audience and it should be gleaned from the value proposition canvas.

For our example above: The anchor for our value proposition is "value for time and a desire for a stress-free home environment. This insight sits at the intersection of the customer segment's pains (lack of time, stress due to cleaning) and the value/benefit offered by SpruceUp (reduced stress, time saved).

Hence the value proposition statement: "Skip the stress, reclaim your time. SpruceUp delivers a hassle-free cleaning experience with vetted professionals, so you can relax and enjoy a clean, comfortable home."

How we arrived at the statement:

By focusing on the anchor point, we crafted a statement that:

• Addresses the emotional needs of the target audience (feeling in control, having a peaceful home).

• Highlights the key benefits delivered by SpruceUp (time saved, reduced stress, seamless experience).

• Subtly differentiates SpruceUp from competitors (vetted professionals, flexible scheduling, secure platform).

• Maintains clarity and conciseness for easy comprehension.

This shift in messaging can now be used to differentiate SpruceUp's offer and elevate it's value proposition. and positions it as a trusted partner in achieving a desirable lifestyle

USABILITY
How to use the value proposition findings?

• Homepage copy: The hero section of SpruceUp's website should prominently feature the value proposition. A captivating headline like "Reclaim Your Time. Enjoy a Peaceful Home. Download SpruceUp Today!" can be paired with a supporting statement that elaborates on the benefits.

  For example: "SpruceUp connects you with vetted cleaning professionals, so you can spend less time cleaning and more time on what truly matters."

• Landing page: Specific landing pages can tailor the value proposition to address different customer segments. A landing page targeting families with dual-income earners might emphasize "Spend more quality time with your family and leave the cleaning to us."

• Social media ads: Short, punchy headlines in social media ads can utilize the core message. Examples include "Feeling Stressed? SpruceUp can help!" or "Don't waste another weekend cleaning. Get a quote from SpruceUp today!"

• Sales pitch: The value proposition should be the foundation of a SpruceUp salesperson's pitch. After establishing rapport, the salesperson can connect with the customer's pain points and highlight how SpruceUp addresses them.

  Example, "We understand busy professionals like yourself value their time. SpruceUp allows you to reclaim those precious hours by taking care of your cleaning needs."

EXAMPLE
Netflix and how its value proposition captivate its target audience.?

Deconstructing the Netflix Homepage Message for their value proposition:

1. What Netflix offers:

   Netflix offers a vast library of movies, TV shows, documentaries, and other forms of entertainment content. Users can access this content through a subscription model, for unlimited viewing on various devices like TVs, smartphones, and tablets.

2. Pain/Gap addressed:

   The critical pain point Netflix addresses is the desire for convenient and accessible entertainment.

   Limited free time: Busy lifestyles often leave people with limited time for traditional entertainment options like going to the cinema or cable TV. - Inconvenience: Traditional methods can be inconvenient, requiring specific times or locations for viewing. - Lack of choice: Traditional options might not offer the variety or specific content users are looking for.

3.  Value proposition anchor:

   The core "anchor" for Netflix's value proposition is most likely providing a solution for relaxation and unwinding.

   Entertainment as Relief: After a long day, people seek ways to de-stress and disconnect from daily pressures. - Personalized Choice: Netflix caters to the desire for control and choice in entertainment consumption.

   4. Value proposition statement:

   Access a vast library of movies, TV shows, and more. Watch anywhere, anytime, on your favourite device."

This statement incorporates the emotional benefit ( access content anywhere a& anytime) highlights the extensive content library (vast library), and emphasizes the convenience and accessibility aspects (watch anywhere, anytime).

MARKETING MINDSET MOMENT
Role of a marketer: Owning the value proposition

Lets now understand the role of the founding marketing or the product marketing manager in designing a compelling value proposition.

The PMM/founding marketing manager bridges the gap between product development and marketing, playing a pivotal role in crafting the value proposition. They work closely with the product team to understand its functionalities and with the marketing team to translate those features into compelling customer benefits.

Everything that has been discussed above is a core responsibility of the marketing manager as this insights and framework will dovetail into the messaging and the product positioning along with the product value proposition

RESOURCES ON SPOTLIGHT
Free resources to start with.

• Resources guide

  • Value Proposition Canvas by Strategyzer: https://www.strategyzer.com/library/value-proposition-canvas-a-tool-to-understand-what-customers-really-want

  • How to Write a Compelling Value Proposition: https://firstround.com/philosophy/

  • The Mom Test by Rob Fitzpatrick: A guide to interviewing customers to validate your product idea.

  • HubSpot free value proposition frameworks and examples: https://blog.hubspot.com/marketing/write-value-proposition#elements

  • Download my Value proposition framework.

  By harnessing the power of a well-crafted value proposition, you'll empower your startup to attract early adopters, build brand loyalty, and ultimately pave the way for sustainable business growth