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What is Your Value Proposition?

By - Posted under Business

So you’ve picked your niche. Fantastic. Now the real work starts.

We help entrepreneurs and businesses succeed by helping them gain clarity and focus in their market and building digital strategies to reach that market. We’ve been doing this for over 25 years. While the digital landscape is constantly changing, the fundamentals of marketing have not.

The most successful companies understand the power of focus, especially those in highly competitive markets. Let’s take a quick look at the auto industry as an example.

Most people, at some point in their life, will buy a car. So why don't car companies market to everyone? Because they’ve long understood that tastes differ. They spend millions of dollars on market research to identify their target audience and what appeals to them the most. Watch a few car commercials and you can quickly sense what demographics and interests they are targeting.

When you think of BMW, you think of luxury and performance. When you think of Honda, value and fuel efficiency are more top of mind. The comparisons are endless.

Back to my original point. Establishing your niche is only step one. Now you need to find out as much as you can about your market so you can effectively reach them.

Obviously, spending millions of dollars on market research is out of the question. Big brands do it because they know how important it is (and they have the budgets to do it). The good news is, you don't have to spend millions to get the information you need.

Understand Your Market

The best way to understand your audience is to build a profile of your ideal customer in your niche. In marketing lingo, we call this an avatar or persona. Essentially, it is a detailed description of the type of client you want to work with. A persona covers:

  • Demographics – age, gender, marital status, profession, income, location
  • Psychographics – personality, values, interests, motivations
  • Communication – what channels they use (email, phone, text), expectations, language
  • Media – what publications they read, what influencers they follow
  • Challenges – pain points, issues, frustrations

In building a persona, draw from your current client base as these people have already chosen you and are your best source for identifying the ideal traits of your target client. They’re also the best source for understanding your value. Which leads to my next point.

Identify Your Value Proposition

Once you have a good understanding of your ideal client, you can start to craft your approach for reaching this audience. A key part of that approach is identifying and communicating your value proposition. The one compelling reason clients should choose you to do business with.

A great place to start is with your current clients. Ask them questions. Why did they choose you? What do they like most about working with you? What do they like least? What words would they use to describe you? You can gain valuable insights into the value you bring from the clients you currently work with.

Follow this with additional research into your persona. What are the key challenges they face and what solutions do you offer to address them? Focus on what makes you different from everyone else.

The narrower you define your target market (niche) the easier it is to define your unique value proposition. It’s simple. You can’t be everything to everyone. Pick your market. Understand their pain points. Show them your value.

If you’re struggling to make a dent in a very competitive industry, focusing your efforts on a segment of the market may be the key to your survival.

Book a free 1-hour strategy call with us to gain more clarity about your business.

 

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