One of the biggest surprises I had when coming into corporate-land from the agency side was that so many marketers define seemingly universal things different (or they completely misunderstand what something is). One of my favorite colleagues once protested, "You're too obsessed with the definition of these things!" (This was after I pointed out that he was really talking about a tactic, not a strategy, and his objective had yet to be defined. You know, details.)
Definition or not, there does seem to be a general lack of understanding of what a value proposition is - not to mention what a GOOD value prop is. (Don't even get me started on how people define "brand" - or how some think a good agency can make any video go "viral.")
Yes, it's a promise of what you have to deliver with a believe from the customer and how it will be experienced. But that can be anything. Too many people start here and end up with a watery sentence that might sound great - but is doomed to fail because it doesn't mean anything to anyone.
If you are in a situation where you're looking at a alleged value prop that is pithy, a tagline, employs alliteration or rhymes, chances are it's not a value prop.
Want to be smart about them? Here's how:
1. They need to reflect the business strategy and the current situation. Are you looking to retain customers or acquire? Do you have market share? Or are you number 2 and aspiring to be #1? Are you totally in the toilet and need a hail mary?
- Strategies that are simply retaining customers should focus on the bigger brand message, but those who are trying to get new customers, should focus on the benefits and attributes of the products, not as much of the brand. You have to give them logic to believe your value, not just emotional fluff.
- On the other hand, if they already love you, don't go down the bunny hole of talking features and benefits. Stick to the brand.
2. Are you the market share leader (or aspire to be?) or are you lagging behind?
- If you're the market leader, your job is to defend the category that you lead. Protect the category - protect the brand.
- You can also re-define the category - or create a new one - so you can "own it."
3. Do you really know who your competition is?
- Knee-jerk reaction is to say the name of a competitor. But in many cases, that's not the competition, not really. Consider McDonald's. Who's their biggest competition? Burger King? Wendy's? Nope. McDonald's original value prop of "friendliness, cleanliness, consistency, convenience" puts them in a bigger category than just fast-food, going head-to-head against Mom (which they don't have a snowball's chance in winning that category). Today's McDonald's still holds these values, but has wisely re-defined their category in the fast-food department, which they've owned.
- For example: GE sells an amazing hand-held ultrasound device. In thinking about competitors, the instinct is to look to other competitors who have small ultrasound devices that can be used in office to "see" heart rhythms that are traditionally only heard. In this case, though, the biggest competitor is actually the stethescope. That's the behavior we are trying to change, and the thing that's standing in the way of winning the category.
My point (and yes, sometimes I actually have one) is that buzz words and zippy phrases are fine. But think about the business case first.
Some of the best value props are not sexy. But at the same time, it's our responsibility to understand what we need it to do... and if we're trying to get customers in a market that belongs to someone else, we don't always have the luxury of being cute or sexy.
Boring can be amazing. Sexy can be ineffective. Embrace your inner nerd. It helps your success rate.