Connecting with Your Customers: The Importance of a Customer-Focused Value Proposition
A value proposition is a statement that communicates the unique value that a product or service offers to customers. It is a critical element of a business’s marketing strategy because it helps differentiate the business from its competitors and convinces potential customers to choose its products or services over others.
A customer-focused value proposition is even more important for businesses because it speaks directly to customers' needs, desires, and pain points. It emphasizes the most important benefits to the customer and positions the product or service as the solution to their problems. By speaking the customer’s language and addressing their specific needs, businesses can create a value proposition that resonates with potential customers and convinces them to choose their product or service.
The Problem with Generic Value Propositions
Generic value propositions often fail to resonate with customers because they don’t speak directly to their needs or pain points. Instead, they focus on generic features that don’t differentiate the product or service from its competitors. This can make the value proposition sound hollow and unconvincing, leaving customers uninterested in the product or service.
For example, a generic value proposition for a coffee shop might be “We offer high-quality coffee and a comfortable environment.” While these features are important, they don’t meet customers' needs or motivations for choosing a particular coffee shop. Customers may be more interested in a value proposition highlighting the coffee shop's unique benefits, such as the convenience of the location, the friendliness of the staff, or the availability of vegan options.
Here is another example of a generic value proposition:
“Our company provides high-quality products at affordable prices.”
This value proposition doesn’t provide specific details about what the company offers or how it differs from its competitors. It’s a generic statement that could apply to any company in any industry, and it doesn’t speak directly to the customer’s needs or motivations.
To make this value proposition more compelling, the company could focus on the unique benefits of its products or services and speak to customers in their language. For example:
“Our company provides eco-friendly and sustainable products that are affordable and positively impact the environment.”
By highlighting the products' unique benefits and speaking to customers in their language, this value proposition is more likely to resonate with potential customers and differentiate the company from its competitors.
The Problem with Company-Focused Value Propositions
Company-focused value propositions focus on the company’s products or services rather than the customer’s needs and desires. They often use technical jargon or industry buzzwords that may not be familiar to the customer, making the value proposition confusing or uninteresting to them.
When a company-focused value proposition is used, it fails to resonate with customers because it doesn’t speak directly to their needs or address their pain points. This can leave customers uninterested or unimpressed with the company’s products or services.
For example, a company-focused value proposition for a car dealership might be “We have the latest models and the best financing options.” While these features are important, they don’t speak to the customer’s needs or motivations for purchasing a car. Customers may be more interested in a value proposition highlighting the dealership's unique benefits, such as friendly customer service, knowledgeable sales staff, or competitive pricing.
Another example — “Our company is a leader in the industry, with decades of experience and cutting-edge technology.”
While this value proposition highlights some of the company’s strengths, it doesn’t address the customer’s needs or their pain points directly. It’s a generic statement that could apply to any company in any industry, and it doesn’t provide any specific information about what the company can do for the customer.
To improve this value proposition, the company could focus on the unique benefits of its products or services and speak to customers in their language.
Speaking The Customer’s Language
Speaking the customer’s language is essential to creating a value proposition that resonates with potential customers. By using familiar and understandable language to the customer, businesses can create a value proposition that speaks directly to the customer’s needs, wants, and pain points.
When businesses speak the customer’s language, they are more likely to create a sense of connection and trust with potential customers. Customers feel understood and are more likely to engage with the business and ultimately make a purchase. On the other hand, using technical jargon or industry buzzwords can create confusion or disinterest among potential customers, leading them to look elsewhere for solutions that speak to their language.
For example, a value proposition that speaks to the customer’s language for a healthcare app could be:
“Take control of your health with our easy-to-use app that helps you manage your appointments, track your medication, and connect with your doctor. Stay on top of your health with real-time updates and personalized recommendations that make it easy to stay healthy and happy.”
This value proposition speaks directly to the customer’s needs and pain points, using language that is understandable and relatable to the customer. By using words like “manage,” “track,” and “connect,” the value proposition emphasizes the benefits of the app in a way that is accessible to the customer.
Ways to use language that resonates with customers
- Use the customer’s words: Pay attention to the words and phrases that customers use to describe their needs and pain points. Incorporating this language into the value proposition shows that the business understands the customer’s perspective and is focused on meeting their needs.
- Emphasize benefits over features: Instead of focusing on technical details or product features, focus on the benefits the product or service provides the customer. Use language that emphasizes how the product or service will solve the customer’s problems or make their life easier.
- Be concise and clear: Use simple and concise language that is easy to understand. Avoid using complex or technical language that may confuse or intimidate the customer.
- Be authentic: Use language that reflects the company’s personality and values. Customers are more likely to engage with a company that speaks authentically and transparently.
- Highlight social proof: Use customer testimonials or social proof in the value proposition. Customers are more likely to engage with a company that has a proven track record of delivering value to other customers.
For example, a value proposition for a fitness program that uses customer language could be:
“Get fit on your schedule with our easy-to-use fitness program. Our program is designed to fit your lifestyle, with personalized workouts and expert guidance to help you reach your goals. Join a community of like-minded individuals and achieve your fitness goals together.”
Using language that speaks directly to the customer’s needs and desires makes this value proposition more likely to resonate with potential customers and convince them to engage with the fitness program.
Here is an example of how customer language can be incorporated into a value proposition:
Company-focused value proposition: “Our company provides the most innovative and advanced software solutions in the market.”
Customer-focused value proposition using customer language: “Streamline your business operations and get more done with our easy-to-use software solutions. Say goodbye to manual processes and hello to increased productivity and efficiency.”
In the customer-focused value proposition, the language has been changed to directly address the customer’s needs and desires. The phrase “streamline your business operations” speaks to the customer’s desire to simplify their workflow, while “get more done” highlights the customer’s desire to increase their productivity. The value proposition also uses the phrase “easy-to-use software solutions,” which is familiar and understandable language to the customer, instead of using technical terms like “innovative and advanced.”
By incorporating customer language into the value proposition, businesses can create a sense of connection and understanding with potential customers. This approach is more likely to resonate with the customer and convince them to engage with the business, ultimately leading to increased sales and customer loyalty.
Here are a few more examples —
a) Let’s take the example of a detergent powder company.
Example of a poorly written value proposition from the company’s perspective:
“We offer the most advanced formula for cleaning your clothes. Our detergent powder is made using the latest technology and can remove even the toughest stains.”
This value proposition is focused on the features of the product, rather than the benefits to the customer. It does not communicate why the customer should choose this particular detergent powder over the competition.
A better value proposition from the customer’s perspective and in their language could be:
“Our detergent powder gives you brighter and cleaner clothes in just one wash, so you can spend more time doing what you love. Say goodbye to tough stains and hello to fresh-smelling clothes that last longer.”
This value proposition highlights the benefits to the user, such as brighter and cleaner clothes, while also addressing the customer’s desire for efficiency and convenience. The language used focuses on the customer and how the product can improve their lives.
b) A home appliance brand —
Wrong: Our company offers the most advanced, innovative home appliances in the market.
Right: Our appliances simplify your daily chores and save you time with easy-to-use features and smart technology that adapts to your needs.
Pampers
In 1997, Pampers, though it is a superior baby diaper with the ultimate benefit of “dryness”, was losing its market share to Huggies. The earlier value proposition statement for Pampers may have been something like: “Pampers provides superior baby diapers that offer the ultimate benefit of dryness.”
However, after conducting user research, Pampers realized that their focus on dryness was not resonating with parents. They shifted their value proposition to focus on mothers' emotional concerns and babies' health and development. A customer-focused value proposition for Pampers.
“Help your baby sleep soundly and support their healthy development with Pampers. Our Swaddlers are designed for infants, our Cruisers for toddlers, and our pull-ups make toilet training easy. Delight in knowing that you’re giving your baby the best possible start in life.”
By emphasizing the benefits of sound sleep and healthy development for babies and addressing the emotional concerns of mothers, Pampers was able to differentiate itself from competitors and win back market share. This value proposition speaks directly to the customer’s language and needs and is more likely to resonate with potential customers.
Domino’s Pizza
The old value proposition for Domino’s Pizza was focused on convenience and speed of delivery, with slogans like “You got 30 minutes, or it’s free.” However, this value proposition did not address customers’ primary concerns about the quality and taste of the pizza itself.
Through customer research, Domino’s found that customers were dissatisfied with their pizza's quality and taste, which was a major factor in declining sales and poor customer feedback. In response, Domino’s completely revamped its pizza recipe and crust to use higher-quality ingredients and improve the taste.
At the same time, Domino’s also shifted its value proposition to focus on the quality of its pizza and the improved taste, with slogans like “You can taste the difference.” This new value proposition addressed customers’ concerns and spoke to their language and needs for high-quality, tasty pizza.
By improving the product itself and shifting the value proposition to focus on the customer’s language and needs, Domino’s was able to reconnect with customers and improve sales and customer satisfaction.
Pantene
Previously, Pantene categorized their hair products by hair type, such as normal, dry, or oily. However, they found that this approach was not resonating with customers, as many were misdiagnosing their hair type and not getting the desired results from the products.
In response, Pantene shifted its value proposition to focus on the customer’s language and needs. It created new products designed specifically for hair concerns, such as Volume, Curly Hair, or Straight Hair.
This new approach allowed Pantene to speak directly to the customer’s language and needs, addressing their specific concerns and desires for their hair. For example, a customer with curly hair would be more likely to purchase a product from the Curly Hair collection, as they can relate to the language and messaging used in the marketing.
By shifting its value proposition to a customer-focused approach, Pantene improved its sales and customer satisfaction. Customers felt that the products were designed specifically for their hair concerns, and they were more likely to have a positive experience with the products as a result.
YellowTail
YellowTail is a wine brand that has gained significant popularity in recent years, partly due to its value proposition that speaks directly to the customer’s language and needs. The brand is positioned as an approachable and friendly option for wine drinkers who may not be experts in the field. The labelling and marketing make it clear that this is a wine for everyone, not just connoisseurs.
YellowTail’s value proposition is focused on the customer’s language and needs by using simple, straightforward language that is easy to understand. The brand’s tagline, “Great Australian Wine,” is easy to remember and speaks to the brand’s origins and quality. Additionally, YellowTail’s labels are colourful and eye-catching, which appeals to customers who may be overwhelmed by other wine brands' complex and confusing labels.
Let’s take an example of YellowTail’s customer focus—
A competitor’s wine label’s backside might contain content similar to what’s written below —
Chateau D’Arcins Haut Medoc has a dark garnet colour, a toasted nose with hints of black fruits, prunes, raspberries, and liquorice. Well balanced. Fine and ripe tannins leave a lingering finish.
The content can be intimidating and confusing for someone not well-versed in wine terminology. Descriptions like “dark garnet colour” and “fine and ripe tannins” may not be easily understood by the average person.
In contrast, Yellow Tail’s value proposition is consumer-focused and speaks directly to the customer’s language and needs. Instead of using technical language to describe the wine, Yellow Tail focuses on the brand’s story and the experience of drinking the wine.
The description on the back of a bottle of Yellow Tail Merlot reads:
“For 3 generations, the Casella family has been making wine at their winery in the small town of Yenda in South Eastern Australia. Here, [yellow tail] is created with a simple purpose: to make a great wine that everyone can enjoy. [yellow tail] is everything a great wine should be. It’s approachable, fresh, flavoursome, and has its own personality.”
This description uses simple language and a relatable story to connect with the customer. The focus is on the experience of drinking the wine rather than technical details that may not be easily understood.
Nike
In the 1980s, Nike’s value proposition was focused on performance and innovation, and the company’s marketing campaigns emphasized the technical features of its products.
However, in the 1990s, Nike shifted its focus to a more consumer-oriented value proposition emphasising its products' emotional benefits. The company’s “Just Do It” campaign, launched in 1988, encouraged consumers to pursue their dreams and aspirations and positioned Nike products as a tool to help them achieve their goals.
Nike’s new value proposition focused on inspiring and empowering consumers, and the company’s marketing campaigns emphasized its products' emotional and personal benefits rather than just their technical features. This shift in value proposition successfully attracted a new generation of consumers who were more focused on individual expression and self-empowerment.
Today, Nike continues to emphasize its consumer-focused value proposition, with marketing campaigns focusing on inspiring and empowering consumers to achieve their goals, whether in sports or life. Nike has built a loyal and passionate customer base that extends far beyond its products by connecting with consumers emotionally and aligning its brand with their values and aspirations.
Conclusion
In conclusion, a customer-focused value proposition is essential for any business that wants to connect with its target audience and build a loyal customer base. By speaking directly to the customer and addressing their specific needs and pain points, businesses can create a value proposition that is relevant, engaging, and impactful.
Many successful brands have shifted their value propositions from company-focused to customer-focused, recognizing the importance of connecting with customers emotionally and aligning their brand with their values and aspirations. By using language that resonates with customers, addressing specific pain points, and highlighting the unique value that their products or services provide, businesses can create a value proposition that resonates with their target audience and drives customer engagement and loyalty.
In today’s competitive marketplace, a customer-focused value proposition can be the key to success, helping businesses to differentiate themselves from competitors, build brand loyalty, and drive growth and profitability.