Value Proposition Design

Your Value Proposition (VP) is the offering  that you provide to consumers and can be divided into 3 broad categories:

Service offerings

Financial, professional, healthcare and wellness, hospitality, transport, waste management, protection, security...

Physical products

Any product you buy at a retail store or a meal that you eat at a restaurant

Intangible products

Bank account, insurance product, a cell phone contract, computer software, training program, a holiday package...

The importance of a great Value Proposition

Designing a value proposition that will attract the right customers are the most important strategic objective for your business

“The purpose of business is to create and keep a customer.” -Peter Drucker

3 critical elements of a successful Value Proposition

Addresses a specific
consumer need

Is different than what
competitors offer

Priced so that customers and your business get value

A successful Value Proposition will answer the following questions:

Which features are the most important to customers?

Which features are essential, and which are just “nice to have”?

Which features will differentiate me from my competitors?

How much will customers be willing to pay for individual or bundled features?

Which customer groups (segments) will be attracted to my offering?

What is perfect “bundle of features” that will attract the most customers?

Our process: Conjoint analysis

Conjoint analysis, an advanced AI-driven trade-off methodology, will allow you to design the ideal value proposition.

How does it work?

Survey

Customers compare various value propositions and choose the ones they will buy

Predict

Replicates a real-world buying environment to predict customers’ buying behavior

Simulate

Use advanced AI to simulate various Value Proposition design outcomes

Optimize

Design the optimal Value Proposition package that fulfils customer's needs, differentiates from competitors, and grows your financial return

Conjoint analysis is considered by most researchers and business practitioners as the most powerful tool to understand customer preferences since it allows you to simulate hundreds of product combinations and find the best one for your customers

How you can use the insights

Focused Strategy

Informs the strategic choices your company must make

Identify the market fit between customer needs and your value proposition

Customer Needs

Which features resonates with which customers and drives their purchase decision

At what price do you include these in your value proposition

Competitive Positioning

What differentiates you from your competitors

What is the best position in the market for your company

Optimal Pricing

Understand customer’s price sensitivity and willingness to pay

Identify the optimal price point for your value proposition

Drives Innovation

Innovate to address customers unsatisfied, burning needs

Add more value to the lives of customers and stay relevant

Marketing Message

Refine your marketing message to target specific segments

Ensure your marketing message resonates with customers