A value proposition isn’t an arbitrary statement written in a vacuum (and certainly not in a boardroom, either). To create a compelling value proposition that truly sets you apart, you need input. Objective input from perspectives other than your own.

Quality input forms the necessary foundation on which a compelling value proposition can be built. You need to gain insight in three vital areas:

• Your current brand strengths

• What your customers care about

• The competitive environment

Why? So you can discover your company’s sweet spot – the place where all three areas of insight overlap. The strongest value propositions emerge when you can align what you do better than anybody else with what’s most important to your customers and what your competition can’t offer. That, is ultimately where you can deliver unique value that gives customers a reason to buy from you.

The old adage “You get out what you put in” rings true here. Trying to formulate a value proposition from information that’s irrelevant, incorrect or just plain missing won’t get you very far. So here’s your crash course in gathering quality insight – to make sure your value prop hits the “sweet spot.”

Current Brand Strengths

Look honestly at your company’s capabilities. What are you good at? What aren’t you good at – and do you need to be? What could you be good at in the future if you made the effort? Your C-suite can probably give you solid insight into these matters – but the view from the top might be very different than down in the trenches so don’t stop there. Get input from across the organization. People in R&D, marketing, sales, customer service and IT can all bring a unique perspective to the business, and sometimes surprising insight. Plus, it’s a good check to see how aligned the different areas are around your company’s mission and values.

To get people’s real opinions, consider having a third party conduct the research to keep individual feedback confidential. Employees must feel like they can be honest without putting their jobs on the line. If not, they’re going to tell you what they think you want to hear.

No matter how well you think you know your company, it’s important to also look at your brand strengths in the context of how others view you. Talk to current customers, past customers, and the people you wish were customers. What do they think about your brand? Why do they do business with you? Why don’t they? Is there a disconnect between the messages you’re sending and ones they’re receiving? Prospects who aren’t as close to your brand might give you the best insight into how your brand story is being perceived.

Customer Concerns

Besides knowing what your customers think about your brand, you need to know what they care about. Only then can you align your brand story around what’s relevant to them, and build stronger messaging that demonstrates how your offerings solve the problems that keep them up at night.

There are lots of ways to learn what customers care about. If you have them, loyalty studies and satisfaction surveys are a great place to start. You can also tap tradeshows, industry publications and customer relationships to keep tabs on current issues, and use social media listening tools to monitor online chatter on hot-button topics.

Competitive Framework

The key to creating a value proposition that differentiates you from your competitors is to make it different. Obvious, yes. But not so easy – especially if you play in a mature or crowded market space where your competitors have similar offerings. (There are hundreds of marketing and advertising agencies in the Twin Cities Metro area alone. Trust us, we feel your pain).

Start by understanding the value story your competition is telling. If you’re saying the same thing (even if it’s true) it won’t set you apart. If everyone’s saying it, nobody owns it. It becomes table stakes to your customers, not a differentiator.

Conversely, if you’re first to tell a value story no one else is talking about, (even though your competitors could offer it) you may have an opportunity to differentiate, although your advantage might be short lived. Volvo had a good run at successfully owning “safety” from the 1970s through the 1990s. Their advertising promoted it, their cars embodied it and consumers believed it. But now so many other brands have encroached by promoting their own safety records and crash test ratings that car safety has become tablestakes to consumers.

You can keep tabs on what the competition is doing with many of the same tools used to gain customer insights – social media, trade associations, industry publications. Read their websites, blogs and press releases. Leverage your customer relationships where appropriate to gain insight.

Once you understand what your competition is saying, realistically assess your own strengths, looking for areas to bring value where your competitors can’t. Even if the difference is subtle, it can be significant in giving you an edge – if, and only if, it addresses an important customer need. When all three come together, you’re in the right spot. Sweet!

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