If you don’t think a value proposition is valuable – you’re doing it wrong
There are millions of articles about value propositions out there, but most of them miss a critical benefit of developing one, argues The Royals’ head of strategy Andrew Reeves.
Consult the internet and you’ll find countless references to Value Propositions. 126,000,000 results in fact. Yikes. Yes, people have written endless guides on how value propositions work, why they are important, how to write a great one, and so on.
So let’s add one more to the digital landfill, shall we?
No.
Wait.
I can do better.
I can offer something here.
But why so many articles and references? Well, the good old value prop is fundamental to businesses – it’s business 101. A singular piece of strategy every business needs to connect its product/service to a market need.
Not to be confused with a statement of what the business is or, worse, a set of characteristics that describes what a business needs to have to operate in the market. A great value prop is unique, compelling, and distinctive.
But there’s more to it than that. It’s not just a customer value proposition. The strategic work can be used to define employee value – connecting the motivations of staff to organisational culture, for example.
Nail this, we are told, and you’re halfway there when it comes to your marketing strategy.
As an unashamed strategy nerd, I love value propositions. They are the sorts of projects that get you to the beating heart of organisations and businesses. Developing a value proposition gets you talking to the C-Suite, to sales teams, to customer service teams, and, of course to customers. Value props are at best enlightening, and at worst clarifying.
I love them for multiple reasons – the sharper, and more distinct the value proposition, the stronger the market position of the brand can become. This generally leads to better creative briefs and selfishly better ideas and creative opportunities.
But I also love them for their ability to engage the crowd. Show me a CEO who is not interested to hear more about their business’s strengths, their influence on the company, or their competitors’ weak spots. A value proposition is a hot knife in a tub of butter (at least for a few moments).
But beyond that delicious analogy, I know there are also tangible and unexpected benefits that come from these projects. What the internet boffins generally overlook with their articles on value propositions are the ancillary but no less important benefits that come from these projects:
The internal alignment of stakeholders
Value propositions are not easy exercises to execute; creating one involves multiple teams and disciplines within an organisation. This forces participation from all levels and departments within organisations that sometimes find communicating together challenging and cumbersome.
Achieving collaboration itself is a huge benefit, and an effective way to generate buy-in is to help everyone realise that value propositions are not just for customers; they are equally as powerful to the inner workings of any organisation. They can rein in disparate views, they can get stakeholders to cooperate in new ways, and identify new ways of looking at old problems.
The elevation of a vision
Value props are an excellent way to bottle what is often the magic of a spirited leader. So often the leader’s vision is present in a business, but it’s rarely written down or captured in a concrete form. These visions are generally inspiring and accompanied by myths and stories, which can inform cultural strategies and employee value propositions.
The peacemaking
It’s funny how getting on the same page can also resolve tensions. The process of working on a clear narrative and set of proof points often leads to consensus. Take it to the extreme and you might even be able to find engagement from warring stakeholders.
Fresh perspectives
A value proposition project illuminates. Typically competitive analyses scratch the surface of the comms. A value proposition takes you further – asking customers questions, getting to the core and the proof of the brands in the category. They unlock new knowledge about the competitive landscape.
Summing up
A value proposition, while geared toward customers, is just as powerful to the inner workings of any organisation. It can reignite a passion for the business, help align teams around current and future state activities and initiatives, and also help determine which of those initiatives should be priorities.
So here’s to value props and hopefully a perspective on them that sheds some new light in the infinite feed of marketing wisdom.
Andrew Reeves is the head of strategy at The Royals.
