According to a recent report, more than 77% of the product launches fail due to a bad product experience or poorly communicated value proposition. Therefore, only paying more for quality is not the key; value proposition matters too. For example, you are a startup and need a CRM.

Some of your friends suggested two CRMs. One is remarkably free of cost and has fewer features but covers all the basic ones. While the other is quite expensive but covers all the basic plus advanced features. Which one will you choose? This time you might prefer the first one. Because since you are a startup, budget matters a lot for you. The first CRM has all the essential features which you require. So, why pay more for some features which you don't even need right now. Thus, you will select the CRM that aligns with the value you are looking for. So now, let us understand "What is the value proposition?" and "How can you use your sales and analytics data to create a great value proposition in the market?".

What is Value Proposition?

Value Proposition is a marketing technique in which a company highlights unique features of their product to make it attractive to customers and promise a value to be delivered and acknowledged. It is an integral part of the overall branding of your product. For example, a CRM company mentioned on the top of their website: "All the basic features, free of cost. Access to more advanced features at a discounted price."

This value proposition example addresses customers' needs. For example, one customer needs a CRM free of cost; one needs all the essential features in a single CRM; one has a budget issue and needs advanced features at a discounted price, etc. Thus, the value proposition outlines the benefits which a customer can draw from their unique offerings.

How to use sales and analytics data to create an exceptional value proposition?

Listed below are some steps on how to create a value proposition.

1. Identify the sales trends

Sales trends show what the majority of customers desire. Which service or product a majority of them prefer. Therefore, you need to identify these sales trends and then rank your product according to them. Check these trends regularly to help you identify the common attributes that customers prefer over a long period. You can then create a value proposition consistent with all those common attributes, which most customers choose. For instance, after identifying the sales trends, you observed something. Most of the time, people prefer to purchase products from the brands that provide the best customer service. So, you can create your value proposition according to that.

2. Identify your customer's pain points

Try being in the shoes of the customer and think about their pain points. Pain points are nothing but the problems which customers want to and are trying to solve. For instance, a majority of customers wanted a CRM which could help them manage their contact list. Since you have identified this pain point, this will be very useful for you to build a great value proposition. You can identify pain points from your customers' feedback, reviews, and complaints. You can pick the one most common in them and then focus on providing a solution for that. Then, you can redesign your value proposition accordingly, i.e., covering the pain points.

3. Identify your product's benefits

Suppose you own a CRM company; you know that a CRM gets things done quickly. But what are its actual benefits which the customer prefers? List out all the primary benefits which are concise and focus on customers' needs. You can create a buyer persona for this. It will help you visualize better what your customers value.

4. Use forecasting to predict future trends

We have learned from our daily lives that trends don't last forever. Similar is the case with the sales trends. Customers' priorities change over time. So, you can use forecasting to predict future trends. First, you can select some points from your value proposition like best customer service, free of cost, etc. Then, you can check which product and service fit into that trend and use your sales data to analyze these trends' performance. You can then modify your value proposition, keeping the top-performing trends on the top and worst-performing out of all at the bottom. According to an analysis, using sales data to identify future trends has helped millions of companies build a great value proposition.

I hope the information mentioned above will help you understand the value proposition better. Then, you can follow these steps and use your sales data to build a great value proposition in marketing.

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