Assignment 4 - Techno - Mauricio

1. What is value proposition?
A value proposition is a statement that positions your company within your industry,
and tells customers why they should invest in your product rather than your
competitors’. Value propositions do not beat around the bush - the message and the
intent of a value proposition are clear and obvious. All companies use value propositions
to hook customers and reel them in. When companies fail to take the time to develop a
value proposition, they risk missing the mark with regard to defining their target
audience and reaching their target customer successfully. Value propositions are not
slogans; they are an explanation of how your company is going to solve the customer’s
problem and what benefits customers can expect. As such, value propositions can be
formed using many different elements, not a single sentence alone
2. What is the importance of value proposition?
The development of a value proposition is a vital part of a company’s business strategy.

Since the proposition provides a company with a method to influence the decision-
making of customers, it is frequently displayed on the company’s marketing materials,
such as a website.
The value proposition is a powerful tool to drive sales and build a customer base.
Additionally, a perfect and compelling value proposition can advance the effectiveness of
the company’s marketing strategies. Generally, it is regarded as the most effective and
wide-reaching marketing activity.
3. Describe the characteristics of value proposition.
Needs to be short
– Most organisations try to make it sound as complicated as possible. Not surprising; our
society teaches us to respect the complicated and distrust the simplistic!
Use Simple Language
– Assume the lowest common denominator. This is especially true in complex sales
where you need to appeal to a broad range of people who have an influence on the
decision.
Make it Specific
– In other words what’s in it for me? If you’re in any doubt, sit down and interview your
happy customers and ask them. “What’s in it for you?” A word to the wise here, you
might find as many different answers as you do customers and that’s OK.
Reason to Believe
– A testimonial or third party rating can be helpful here. We can list customers such as a
known name or an unknown name in the case of an SME but give the company name,
CEOs name and say something like they’re very much like you.
4. Give 5 examples of value proposition. Discuss why that value proposition work.
Shopify
Shopify’s value proposition lets you know it can handle all of your ecommerce needs no matter
where you sell from.
Why it works: Whether you’re an established business or sell crocheted dog sweaters
from a pop-up shop during the holidays, Shopify uses simple language to communicate
its benefits to a variety of sellers.
Zoom Video and Web Conferencing

As soon as you visit video and web conferencing service Zoom’s site, you’re greeted by their
value proposition and the reason why you should choose its services — it’s rated the No. 1
video conferencing and web conferencing service by Gartner.
Why it works: Social proof. Scroll down a little bit more, and the company answers the
‘why’ you should choose them by providing five benefits unique to the company. Not
only that, it speaks to some pain points businesses that need video conferencing may
experience: inconsistent experiences, difficult platforms and hidden pricing.
Hello Fresh: Stress-free meals

Why it works: Social In this simple but effective value proposition, Hello Fresh speaks
directly to why it’s ideal customers buy from them — because they make mealtime less
stressful.
Mizzen and Main: Classy, but comfortable dress shirts
Why it works: In this example, the cotton dress shirt company clearly knows its buyer persona —
people who want dress shirts that look like a nice, formal dress shirt, but are built to be
comfortable through an entire workday.
Mizzen and Main captures this value powerfully in just three words, then uses a sub header to
drive home the pain point it solves and also speak to the post-pandemic environment we're in.
Bill Ragan Roofing: Local roof repair

Why it works: "Repairing or replacing your roof isn't fun, we want to make it a better
experience for you." It's simple and human; like they actually understand the pain point of their
customers and care about making their lives a little bit better in this way.
What do they do? They solve your roofing problems. How? By making it their problem, not yours.
5. What are the most common value proposition mistakes?
● not looking at the Value Proposition Canvas as two separate building blocks
Many people struggle to see the difference between jobs, pains, and gains as well as
between pains and pain relievers or gains and gain creators. This is often the result of a
lack of understanding of the customer and over generalizing the benefits of a value
proposition.
●Mixing several customer segments into one canvas
We often experience companies grouping the jobs, pains, and gains of multiple different
customer segments into one Customer Profile in the canvas (e.g. payers and users). This is
wrong since each distinct customer segment has different jobs, pains, and gains. Mixing multiple
customer segments makes it very difficult to know which segment's jobs, pains, and gains are
being observed. It's even more difficult to identify and focus on the highest priority jobs,
pains, and gains and to be able to design a compelling value proposition to address them. It’s
an easy mistake to make and also very easy to correct with multiple options for improving.
●Creating your Customer Profile through the lens of your value proposition
Something that I see time and time again working with clients in both very large companies and
in start-ups is that it’s very difficult for people to remove themselves from their idea or their
product, service, or technology. As soon as they begin filling in the Customer Profile they
immediately start listing only the jobs, pains, and gains that they see their value proposition
resolving. They fail to identify what their customer segments really need and what’s really
motivating them to behave in certain ways.
●Only focusing on functional jobs
One of the exercises that we have people perform after completing their initial Customer Profile
is to have them label their customer’s jobs as being functional, social, or emotional in nature. We
find more often than not that the majority of the jobs that have been identified are almost all
functional jobs. This happens because functional jobs are what’s most visibly apparent.
●Trying to address every customer pain and gain

It’s pretty common to see people trying to link every job, pain, and gain from the Customer
Profile to the products and services, pain relievers, and gain creators on the Value Proposition
Map. It’s unrealistic to believe that you can satisfy all of these things for your customers. Further,
trying to do so is time wasted in a fruitless, unfocused effort to do everything and as result you
end not doing any one of those things very well. Thus you still leave your customer unsatisfied.

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1. What is value proposition?

The development of a value proposition is a vital part of a company’s business strategy.

Use Simple Language

Zoom Video and Web Conferencing

Hello Fresh: Stress-free meals

Mizzen and Main: Classy, but comfortable dress shirts

Bill Ragan Roofing: Local roof repair

5. What are the most common value proposition mistakes?

●Mixing several customer segments into one canvas

●Only focusing on functional jobs

●Trying to address every customer pain and gain

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