How to Create a Compelling Customer Value Proposition
Jul 18, 2024
Written by Sandra Benbow
Recently, I had the privilege of delivering online workshops for early-stage start-ups. One of the most common questions I encountered was, “I have an idea. In fact, I have several. But where do I start?”
Here’s the reality: your first idea is unlikely to be your winning business idea. However, if you’ve gone through the process of designing a customer value proposition, identified your customer's jobs to be done, their pains and gains, and how your product or service can alleviate those pains and create gains, you’re on the right path.
Nevertheless, finding the perfect product-market fit requires further effort. It’s crucial to validate your assumptions with potential customers. This means engaging with them to ensure your ideas align with their needs before you invest significant time and resources into launching your business.
The simplest and most effective strategy is to create a minimum viable product (MVP). An MVP is a basic version of your product or service that demonstrates value to your customer. Avoid spending months perfecting a prototype only to discover it’s not what customers want or need. Instead, quickly test the market by creating a basic website, setting up a waitlist, or even taking pre-orders. If there is sufficient demand, you may be on to something. Launch, gather feedback, and continue to iterate.
I recently read an inspiring story about Spencer Scott in Texas. He identified an opportunity in his neighbourhood where everyone was frustrated with their bin collection service.
@Codie A Sanchez shared this post on LinkedIn:
“He threw up a post on Facebook as a test: Were people serious enough about their complaints to switch providers?
His post received hundreds of likes and comments. So he made a simple offer:
If 200 people signed up at $99 for three months, he’d start a new trash company.
150 people ended up signing up.
In 10 days, he had $15k in the bank. That was enough to get started…”
This is a perfect example of how to test the market effectively.
Engaging with your potential customers early and validating your ideas ensures your start-up is built on a solid foundation. Embrace the journey, be ready to adapt, and you may find the key to a successful business.
Embarking on the journey to define and live by your customer value proposition can seem daunting, but you don't have to undertake it alone.
Are you ready to define your customer value proposition and a path to deliver it?
Book a free discovery call with me today.
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