What makes my product or service attractive?

Introduction:

In the realm of business, one question remains timeless and crucial: "What makes my product or service attractive?" Understanding this is essential for small to medium business owners. This blog, brought to you by HelloLedger, delves into this fundamental question, offering practical tools and techniques for crafting a compelling value proposition.

The Importance of a Value Proposition

Your value proposition is a core element of your business strategy. It should be easy to understand, resonate with your target audience, and communicate specific results that your customers will get. It should also explain how your product or service is different from alternatives. A good value proposition is relevant and compelling. Answering questions about the difficulties you solve, how you solve them, and how you are different from others is crucial in crafting a strong value proposition.

Advertising Insights from Rosser Reeves

Borrowing from the world of advertising, Rosser Reeves of US agency Ted Bates coined the term "single-minded proposition" in his book "Reality in Advertising" back in 1961. He concluded that unless an ad (or any communication) had a core proposition at its heart, then what you are saying is a waste of both the reader’s and the advertiser’s time.

Key Elements of a Great Value Proposition

A great value proposition should:

• Be easy to understand for your target audience and resonate with them.

• Communicate specific results that the target customer will get.

• Explain how you're different from an alternative they might be considering.

A good value proposition must be both relevant and compelling. Clickbait, while often compelling, typically lacks relevance and can lead to disappointment. Instead, aim for a value proposition that genuinely delivers on its promises.

Examples of Effective Value Propositions

Here are some examples of good value propositions from well-known brands:

• Product: M&M’s - "Melts in your mouth, not in your hands."
  

• Service: Avis - "We’re No. 2, so we try harder."

• Location: Disneyland - "The happiest place on earth."

• Price: Walmart - "Save money, live better."
  

Crafting Your Own Value Proposition

To create a compelling value proposition for your business, start by answering these questions:

1. What difficulty do you solve for your audience?
   

2. What do you do to solve it?
   

3. How does your product or service do it differently from other options out there?
   

While it might be tempting to break your business down into different product lines or services, it’s more effective to think about the big picture—your business as a whole. Begin by answering the questions above in a single sentence. It may be a long sentence, but that's okay. Then, start to reduce the sentence to something short and punchy. A good test is to think of it as if it were the only piece of signage you could have that told people passing by what was good about your shop or office. What would it say?

Conclusion:

Identifying what makes your product or service attractive is not just a theoretical exercise; it’s a practical tool for business success. SMEs can greatly benefit from revisiting and refining their value propositions. With the guidance of HelloLedger, we can help businesses like yours define and communicate their unique strengths. By crafting compelling value propositions and using them to inform your business strategies, you can build stronger connections with your customers and drive growth for your business.

Remember, the principles of success are universal. Understanding your customer, knowing what makes your product or service attractive, and setting the right price are key to thriving in any market. Start with the first question, and the rest will follow naturally.