Read previous article in this series:
Now is time to see something about how to build superior value. Superior value is something that will convert business potential energy in your business in something that will bring prosperity on long road. But building superior value simple is increasing your business potential energy that will be recognizable from your current and potential customers. Here is 3 elements that make this process:
- Peoples that will recognize a superior value. These people must be in our mind constantly when we build our superior value because these people will reward us for our efforts. In this element, we have two different people. First is our current customers because we want to detain them for repeating the business with us and to pay more because of our value. Second people are potential customers. These are that don’t buy from us, but we want to attract them with our superior value.
- Second element is the improvement. We want to improve all our current values to be more superior. This means that we cannot forget our current values, but it is more important to improve them.
- Third element is to find new values that are important for our business and that will attract more attention from current and potential customers. These are values that we don’t have, or we don’t use it to be our superior value.
 |
|
Photo by dylanmaustin
|
I’d like to tell you that you can implement some standardized steps and your work is done, but I can’t, because the reality is more different. There are steps for implementation, but they are not standardized. One business will build quickly superior value and another more slowly. One will perform 4 steps another will perform 6 steps. You cannot find a standard, it’s better to follow your business and your customers. Where is your business and where are your customers, there will be your superior values.
Basic Steps to Build Superior Value Proposition
I will present some of the basic steps that you can perform to build your superior value. But, this is not one time process that you will perform and finished with the process. If you want to become number one on the market and always to stay at that position you must repeat the process from time to time to improve your current superior value.
But, Lets Start:
Step 1: What is the Market Problems?
We must start with market problems. We must ask ourselves what is the purpose of our business, what type of market problems we want to solve, how we will solve that problems and so on. Yes, this step is all about problems that exist on the market where our business operates or where we want to operate our business.
The tasks for entrepreneurs in these steps are to brainstorm all the problems that exist or can exist on the market. What will people love to see in the problem solving process? Think about what have value for buyers and what don’t make value.
After finished this step you will have a list with the possible factors that can bring you superior value. Here are some of the possible factors that you can consider in building superior value proposition:
- Quality of the products or services
- Perceived value
- Brand that will be superior then brand of your competitors
- Experience
- Customer support
- Deliverability
- Warranty
- Bonuses
- Payments
- Business reputation
- Additional service
- …
There are more factors that can be used in building superior offer. This is only as examples and some starting point for brainstorming process.
Some of the mistakes that entrepreneurs can make are that they are focused only on the products or services and their quality. But, as you can see there are 10 more in the example list of basic factors that also, are not the only factors. There can be 20, 30 or 50 factors depending of the business type and market where business operates. Another mistake, especially in this step is to focus only on the values that you currently offer to your customers. Brainstorm every possible value that you can offer to your customers. In this step, it is a not important influence of each value factor it is important to find as much as possible factors and in next steps you will analyze them.
Step 2: What is Superior Value of Your Competitor
This step is something that will add some additional value factors that we don’t have included into our list from previous step, but they are used from our competitors. Sometimes entrepreneurs can go directly to this step. They will copy the proved strategies and tactics that competitors use and then will improve them. On such a process, they will build a superior value proposition. But, it is more powerful for uniqueness of the superior value to brainstorm and include own value factors into the list. If you want to have your superior value that can’t be simply copied from your competitors you must perform the first step. Simple tasks for this step will look like:
- Find the most important competitors. Focus on the most important competitors that are better from you, or they are close to you. Focus on competitors that already have superior value.
- Analyze their superior value. Think about what they offer, where are they’d better from you, and so on.
- Update your list from previous step.
At the end of this step you will have the list with all factors that can increase your overall value to the existing and potential customers.
Step 3: Analyze All Factors from Previous Two Steps
This step is about analyzing of the factors that you identify in the previous two steps. This analysis will give you possibilities to choose the most important factors that you can use in building your superior value. Furthermore, you will see what can be improved, what your current and potential customers want and how much they want something, what your competitors offer, and what you don’t offer that your competitors offer and so on. All of these factors you can put in one table that will have columns:
- Value Factor. These are all previously brainstormed factors that we can use to build our superior value.
- Influence of the factor on your superior value creation? Simply ask yourself question: How much influence on your superior value creation that factor can have? Make ranging from example from 1 to 5 or from 1 to 10.
- Influence on recognizing. Recognizing is the level that current and potential customers can see that value. Make ranging from example from 1 to 5 or from 1 to 10.
- Do you offer that value? Simply answer with Yes or No.
- Did your competitor offer that value?
- What is your current offer about each factor?
- How you can improve your current offer?
Give the priority of second and third column factors. This mean that you must choose to implement first the factors that have been larger ranged in the second and third column.
Step 4: Implement Values
This step is simple implementation and improvement of all values that were brainstormed and analyzed in previous 3 steps. But, again don’t forget to start with most important and most valuable factors for your business. Make a plan and start working.
Step 5: Repeat the Whole Process
The beauty of this process is in the repeating the whole steps from time to time. This will improve your superior value proposition on the continual basis and will always give you a competitive advantage.
Now we have implemented the crucial steps in building superior value. We have value that can be spread to our current customers and our potential customers. In the next posts, we will obtain something about that.
Next Parts:
Popularity: 5% [?]
