What exactly do we mean by the word “value”?
Here’s what you’ll get when you Google it:
The importance, worth, or usefulness of something.
Value is what drives companies in the business world. Entrepreneurs set out on the rough tough journey of running a business because they want do create some value in the market, in society, or the world at large. The value of a company is what drives the decisions made in a company and decides their target market.
The Value Proposition of a company essentially summarizes why a customer should buy their products or services- the usefulness of the company’s product to their customers. It tells the world what pain points of the customer the company addresses and what gains their customers would… gain. It articulates what the company does and why it’s valuable to people.
A solid and unique Value Proposition is key to ensuring that the business doesn’t get lost among the crowd and can make a business stand out from its competitors.
Let’s take a look at an example:
Slack is a business communication platform developed by American software company Slack Technologies. Slack offers many IRC-style features, including persistent chat rooms (channels) organized by topic, private groups, and direct messaging. ‘
So we can see Slack’s Value proposition says, “Teamwork can be hard, messy, complicated… and still the best way to work. That’s why we made Slack- a place where people get work done together.”
Let’s break it down.
Slack’s Value Proposition points out their target customers pain points- “Teamwork can be hard, messy, complicated”
It also clearly states how Slack hopes to relieve their customers from their troubles and thereby create worth or “value”- “a place where people get work done together.” Slack aims to address the chaos that is born out of teamwork and streamline communication among team members thereby increasing productivity. At the same time, the problem statement also shines light upon the importance of team work and implies that teamwork is indispensable for the success of any endeavor- “the best way to work.”
Slack’s Value Proposition also alludes to their target market i.e. people working in teams or workplaces. What’s more is that Slack’s Value Proposition is clear and concise.
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Value isn’t just limited to monetary gains. It’s the impact you create with your ideas. Money is a part of the valuation of a business.
So that’s it for this article! In the coming articles we’ll look at HOW to write a killer Value Proposition.
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