Creating a customer value proposition that works

by | Oct 11, 2023 | Customer Experience

Busting the myths of the customer value proposition

Change it like you change your wardrobe

Ever wondered why some people seem to have the perfect outfit for every occasion?

While the rest of us dive into the cupboard and hope to find a decent sweater without holes, others walk into a versatile, adaptable and fashionable closet that has every season sorted and ready.

What if we told you that your customer value proposition (CVP) is like your wardrobe?

It’s how you present yourself to your customers and it changes according to their needs, preferences and expectations. Besides, you can’t wear the same clothes all year round, just like you can’t offer the same value proposition to all customers.

 

What is a customer value proposition (CVP)?

A CVP is a statement explaining what you do and how you’re better than the competition – just like clothes draped over those who walk the red carpet. It’s why customers should choose you over others: the core of your marketing strategy and the customer experience (CX).

But how do you craft a CVP that resonates with your target market when their needs constantly change? And how do you keep it relevant, compelling, and unique?

 

Myth #1: A CVP is a one-time thing

Like any fashion statement, just because it worked yesterday doesn’t mean it’ll work tomorrow. A CVP isn’t static and must evolve with your customers and the market.

One of the most common problems companies face when creating a CVP is resonating with their target market and articulating how their products or services can address them…over time.

How InteractRDT busted that myth

A telecom client faced this problem when they wanted to differentiate themselves based on superior customer experience. They had new product propositions but weren’t sure if they would appeal to their target market.

While testing their new product propositions, we helped the client to understand the mass market’s pain points, needs and preferences for online products and services.

Using desktop research, we gained an overview of existing offerings. We conducted in-person focus groups to understand customers’ unmet needs, current practices, and the likelihood of opting for their offerings.

We also analysed relevant feedback regarding their brand awareness and redefined the best target audience for their new proposition, while identifying low-hanging opportunities.

As a result, our telecom client was able to craft a CVP that spoke to their differentiation, could deliver on unmet customer needs, and effectively engaged their target market.

 

Myth #2: A CVP is purely features and benefits

A CVP is not just a list of the features and benefits you offer to customers. Thing is, you can’t just focus on what you do and how you do it; you need to consider why you do it, who you’re doing it for, what the emotional aspects of your value proposition might be, relative to desired outcomes.

CVP is about solving problems, creating value for your customers, understanding their wants, needs, and expectations, and communicating how you can help them achieve their goals.

How InteractRDT busted that myth

One of our clients in the financial services sector couldn’t understand why they were losing customers to their competitors.

By conducting an exploratory study, we compared their digital offerings with their competitors’ and mapped out current and former customer journeys to understand their pain points and motivations.

With a list of recommendations, our client was able to craft a CVP that addressed customer pain points and communicated the desired outcome. They also improved their customer retention rate and increased customer satisfaction.

 

Myth #3: A CVP is expensive to research

Many businesses believe conducting consumer research for a CVP is too costly and time-consuming, and they don’t have the budget or resources to do it regularly. So they rely on assumptions and outdated data, which is like depending on summer fashion trends to stock your winter wardrobe…

In reality, CVP research can save you money and time. Imagine wasting valuable resources on outdated and ineffective marketing campaigns and product development, while the competitor across the road is using the same capital to make strategic decisions based on real customer feedback.

How InteractRDT busted that myth

Two of our clients from the telecom and financial services industries faced this problem. They wanted to get customer insights on an ongoing basis but needed to find the most effective and cost-efficient ways to do so.

We offered them an online panel solution that allowed them to deploy surveys with sample sizes ranging from 100 to 1,500 respondents as and when needed. The online panel solution is cost-effective, fast, and convenient for both the clients and the respondents, giving them consistent and regular actionable insights to capitalise on quick wins and make strategic decisions faster.

 

Upgrade your wardrobe, win your customers

If only it were that easy, right? Fortunately, market research, journey mapping, and online panels make getting to know your customers easier and more insightful.

Not into fashion or tireless research? Ask InteractRDT; our CX fashionistas are masters of exploration and trends.

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