Your Business Value Proposition (BVP) lets prospects know exactly why they should do business with you, or why your customers should pay for your service rather than your competitors. With a focus on the benefits you provide and the problems you can solve, the key to positive results in any company is to make sure you’ve developed your BVP thoroughly.
But how do you know if your BVP is working, or failing? The proof is in the pudding - look at your results! If you’ve noticed a decline in particular results, or notice that numbers are flat, it could mean that it’s time to revisit your BVP and either make changes or re-write the whole thing.
What’s a Business Value Proposition
You BVP should explain, clearly, how your product or service fills the need of the buyer personas you’ve developed. It should also cover other areas, such as how to communicate your benefits, and why your benefits are better than your competitors. Also referred to as a Unique Selling Propositions (USP).
Your BVP should refer to the value your company promises to deliver. It should also declare your company’s intent, your company values, how you operate, and why a consumer should choose you over competitors.
Companies worldwide use this document to determine exactly how they will target their customers and as a foundational item in their UX strategy.
Understanding your Audience
You need to ensure that you are really discovering your customer-base, not just developing the “ideal” consumer. This means diving in deep and doing user research to find out the exact pains and problems that your users need solving. This will give your company a competitive advantage.
When you’re trying to obtain positive results through continuously developing a better digital product, understanding your customer is key. Your consumers should feel that you really understand them. Meaning that they fully understand what the benefits are of the product or service you’re selling, without needing further explanation, while also feeling like their needs are being met while using your platform.
Develop your Business Value Proposition
The tricky part is actually developing the BVP, but we’ve outlined some simple tips you can keep in mind that will help you drive results in your product design and product marketing efforts.
1. Discovery Process
To find out exactly what your customers’ problems are, and how you are solving them, it helps to know what they’re thinking. This includes user surveys and using data visualization to ensure relevant team members are on the same page. This will also help you with the following step.
2. Speak to the customer directly
When you’re creating your BVP, your consumers and users need to be at the forefront of your mind. Fill in your BVP template in the way you would speak to a user. It helps immensely to ensure that they will undoubtedly grasp what they’ll benefit from spending their money with your company.
3. Using real-life stories
Don’t just make up ideal scenarios. Use real stories from real users. This will help you understand where you’ve been successful, but also where you’ve fallen short.
4. Ask your team for help.
You don’t have to go it alone. You can ask other people on your team for help improving your BVP. If they’re not up to the task, you can look for an external partner that has experience in this process.
Common Business Value Proposition mistakes made by CMOs
It’s safe to assume your ultimate goal is to keep your company profitable and growing. BVPs are a foundational document that all your efforts should be built on - and without a strong foundation, the house will crumble.
Companies change over time, and so do consumers. As we’ve seen with the most recent crisis, there are both internal and external factors that can impact user behavior, and it’s your job to ensure that your efforts are not being wasted. Sometimes the right decision is to take some time out to iterate on past documents, like your BVPs.
Incorrectly Prioritizing Solutions to your Customers’ Pains
Determining what your users’ pain areas is just the first step. Once you’ve got your list of problems, you then need to organize them to help you figure out exactly which should be dealt with first, and which will help you achieve your KPIs. Strategyzer has developed a helpful way to organize your solutions’ priorities.
- Important (There will be serious consequences if this goes wrong)
- Tangible (Users can see a result)
- Unsatisfied (No other company has been able to solve this problem)
- Lucrative (It’s worth paying for the solution because it brings results)
Not iterating on important documents
Laziness is a sure way to see results drop. And you might be saying “I’m not lazy, I’m just really busy.” However true that might be, you cannot build any strategy on a weak foundation. If your company already has a BVP, then it’s probably time to go back over it and see where improvements can be made.
Maybe your user-base has changed slightly, or you’ve implemented new features since, that aren’t being highlighted as benefits to the consumer. In a world that is moving quickly, your company needs to make sure it can adapt, or else get left behind.
Not understanding the value your company offers
To continue driving positive results, you need to ensure you’re setting your company apart from your competitors. Make sure you have clearly outlined the unique experience and value you’re offering, why your product or service will make a consumer happy, how you can solve their problems in a way that no one else can.
Figure out what it is about your company that makes you stand out from the crowd. This can be the visuals you use on your platform, or how smooth a user’s experience is while using your service. These will greatly influence customers and their decision about where to put their money.
Helpful Business Value Proposition and Business Model Canvas templates
You might have already downloaded a BVP template, and had the feeling you needed to dig a little deeper into your company to be able to fill it out. Fair enough! That’s actually a very common feeling, which is why it’s often recommended to fill out a Business Model Canvas first. A business model canvas is a more detailed document that helps you collect the information you’ll need to build your BVP.
Don’t risk your results
Without a strong, regularly validated and updated BVP you run some serious risks of seeing declining results, and therefore profits. Since your ultimate goal is to drive results, you need to make sure you’re targeting the right audience, and that you’re communicating your company’s value clearly and concisely. Potential and existing customers shouldn’t have any guesswork as to why you’re better than your competitor.
Whether you need to build your Business Value Proposition from scratch or iterate on your existing one, it’s always a good time to make sure your targets are on point. Keeping profits on the rise isn’t always easy, but you can certainly take the steps to make it easier by ensuring you’ve developed a strong foundation for your company.
- Business Value Proposition is crucial for your overall strategy
- Understanding your customers’ pains and proving that you can solve them
- Make sure you fully understand and demonstrate the value your company provides
- Filling out a Business Model Canvas can help you organize your thoughts