Customer Value Proposition

The purpose of the customer value proposition or CVP in the business sector is to operate and optimize value in their services or products to increase the traffic of the customers. It is typically determined by calculating the value of all benefits that vendors give to the consumers. One can demonstrate their brand’s ability to simplify their customers’ lives by acknowledging their needs, requirements, benefits, and obstacles through the value proposition. The umbrella term for value marketing is associated with both the CVP ( Customer value proposition) and the USP (Unique selling proposition). However, they determine different features and can not be conversed.

Customer Value Proposition Examples

After looking at the customer value proposition, Let’s witness some good customer value proposition examples:

1. Evernote- Organising your life

Through the use of appropriate visuals, Evernote conveys its value proposition of flexibility and device compatibility. Furthermore, they briefly outline the key advantages of the platform.

2. NOVO watch

NOVO Watch manufactures handmade timepieces using repurposed pieces of history in Alberta. The copy of the Novo watch is what makes it distinctive from its competitor’s market.

3. Apple iPhone- The experience is the product

Apple’s iPhone remains the most iconic product in today’s oversaturated market for consumer electronics. Additionally, It is quite difficult to have a product with as much potential and competition as the Flagship of Apple, particularly its mobile device.

4. Uber- The smartest way to get around

While Uber does not explicitly tell consumers that its service is superior to that of a traditional taxi, it expertly points out everything negative about taking one. The effective copy conveys the art of its tempting service in terms of service, directions, instructions and cashless payment.

Types of Customer Value Propositions

There are three categories of  customer value proposition types further dividing them into different categories:

1. Beneficial Properties

To simply list down all the beneficial properties in order to target potential customers is a weak market effort as this approach has the least knowledgeable factors relating to competitors and consumers. However, this approach can be modified by incorporating purposeful benefits relating to convenience, experience, style, brand’s identity, reliability, efficiency, compatibility, productivity, risks and challenges, functionality and performance of a product or a service to resolve a certain aim for which the product or service has been created.

2. Differentiating Factors

In the second type of value proposition, the customer is explicitly informed that there are alternatives and the focus is on differentiating one product or service from another counterpart. However, differentiating a product or a service from its counterpart might not be the only factor in bringing target customers as with every differentiating factor, it gets complicated for the consumers to select the ones with the greatest value. Therefore, it becomes crucial to understand the customer’s needs and preferred choices in a detailed manner and impact the worth of fulfilling them. This could also be enhanced by showcasing the difference in terms of little value offered by the competitor to upscale their higher value points.

3. Resonating or Relatability Focus 

The differentiating factor with all the modified beneficial properties in the value proposition for companies creates a customer value proposition. However, the resonating or relatability focus in the value proposition must be the absolute standard. Taking this approach recognizes the fact that managers or owners who make purchases don’t have time to do what needs to be done and have several responsibilities. It becomes crucial for them to work with people who are able to comprehend critical business issues and offer on-point yet convincing customer value propositions.

In order to demonstrate and deliver the customer value proposition, businesses can position their superior offerings on those few characteristics that potential consumers find highly valuable and communicate it in a convincing way with a well-developed understanding of the consumer’s marketplace priorities.

Conclusion

A well-pitched and formed value proposition can promote a company’s standard to be different from its competitive advantage. Every day, the business landscape becomes more competitive and therefore it becomes crucial to optimize its conversions which are achieved by recognizing and fulfilling the purposeful needs of the consumers. Apart from offering a competitive product or a good service is crucial, it is extremely important to communicate to the consumers the reason for choosing one business over the other. Therefore, customer value proposition and even USP play a significant role in determining distinctive perks of a product or service to showcase it more appealing.