The term Value Proposition is certainly no longer strange to business people. So what is Value Proposition ? What effect does this concept have on consumers' purchasing decisions? In the article below, 1C Vietnam will synthesize the necessary information for businesses to better understand Value Proposition as well as know how to create quality value propositions. Refer now!

1. What is Value Proposition?

Value Proposition in Vietnamese means value statement. This is the promise and commitment of the business about the benefits of products and services when brought to market. Based on that value, consumers will decide to choose products and services that suit their needs.

Not all businesses possess valuable Value Propositions in their Marketing strategies. An ineffective Value Proposition will have the following characteristics:

• The content is rambling, unclear, and obscure.
• Using words with multiple meanings causes confusion or misunderstanding.
• The content is lengthy but does not focus on solving problems for customers.
• Massive content, not different from competitors.

2. Benefits Value Proposition brings to businesses

After understanding what Value Proposition is , businesses will certainly see the importance of this concept to Marketing strategies. Below are the benefits that Value Proposition brings to businesses:

• Helps businesses confirm product quality as well as create a good impression with customers.
• It is the connection point between businesses and customers that helps agreements take place successfully.
• Create competitive advantages and differences in products and services.
• Accompanying the declarations is complete information about the product, helping customers better understand the type of goods they are about to use.
• Enhance customer trust in the business, thereby helping to attract new customers and quickly increase revenue.
• Helps many users know the brand and creates an impression in customers' minds, contributing to brand positioning.
• Helps employees be more confident in the marketing process, convincing customers to buy better products.

3. Value Proposition evaluation criteria

A quality Value Proposition can conquer the hearts of customers as well as bring great benefits to businesses. So what criteria are there to evaluate a Value Proposition? Find out with 1C Vietnam in the section below:

• Short, easy to understand: Usually Value Proposition will come with sentences that clearly explain the values the product brings. These sentences need to be short, coherent and easy to understand to easily attract customers and make them remember longer.
• Focus on solving problems: Value Proposition should be implemented in accordance with customer needs, as an effective solution to help solve the problems they encounter as well as improve the quality of life.
• Intuitive: Intuitiveness helps customers correctly and fully understand the value of the Value Proposition that the business wants to convey right at the first reading.
• Unique and convincing: Providing highly convincing Value Propositions will highlight the reasons why customers should choose the product as well as increase the rate of customers purchasing.

4. Steps to create an effective, quality Value Proposition

In order for businesses to take full advantage of the benefits that Value Proposition brings, 1C Vietnam has compiled the steps to build an effective, quality Value Proposition below. Businesses can refer to this for practical application.

4.1 Step 1: Analysis of customer needs

Today, most businesses own a certain amount of data about customers. Based on that data, businesses can analyze and understand the problems customers are facing as well as their desires for a certain product or service in the future.

Methods that can be used include conducting interviews, surveys, asking for opinions via phone, email, etc. Correctly identify the problem and provide accurate Value Proposition to effectively solve the problem. That will help businesses increase their ability to leave a mark in the hearts of customers.

4.2 Step 2: Determine the benefits Value Proposition brings

Value Proposition is the way businesses declare the values and benefits that their products and services can bring to customers. Therefore, a Value Proposition needs to answer the questions:

• What are the business's products?
• What value is the product capable of bringing to customers?
• Who is the target customer that the product is aimed at?
• What is the difference of the product in the market?
• Why should customers choose this product over other products?

The best Value Proposition usually only ranges from 2 to 3 sentences. Therefore, to be able to answer all of the above questions, businesses need to use short, concise sentences with carefully selected and refined words.

4.3 Step 3: Focus on the values brought to customers

Value Proposition needs to focus on showing the values that businesses can bring to customers through visualization with specific words and sentences, getting to the heart of the problem. Values need to ensure both material and spiritual benefits for customers.

4.4 Step 4: Create competitive advantage over competitors

This is the final step in the process of building an effective Value Proposition and is also the decisive step in the statement's ability to impress compared to other products on the market. Creating a difference not only helps customers pay more attention to products and services but also avoids threats from competitors in the industry.

Hopefully through the above article, your business will understand what Value Proposition is as well as have more useful information to create an effective Value Proposition. If you have any questions related to this issue, please contact 1C Vietnam for support.