What is Value Proposition Development-  Value proposition refers to a clear, concise, compelling, and differentiated story or message of how the benefits of a company’s product or service meet the unmet needs of a customer or market.

When to use Value Proposition Development – At stages like the exploratory phase, maturity, or post-launch phase of a product life cycle, value proposition development can be helpful

• In the exploratory phase: While entering a new market, the value proposition can help the company understand if the market needs the company’s products or services or not. It can help the company modify its offering based on the market dynamics or customer needs
• Testing market–product fit: The value proposition can help in identifying the best product-market fit. It helps in giving the company a correct market understanding and thus helps it to develop the right product that meets the market needs. This in return assures higher satisfaction for customers and greater success for the company
• At the maturity or post-launch phase: The value proposition can be used when a company is planning to add a new feature to its existing product. It helps in identifying the current need gap and helps identify the most crucial feature that the company can focus on. The inclusion of this feature may help the existing customers and thus also help in gaining more customers in the future

Why use Value Proposition Development

• One crucial part of the company’s business strategy is the value proposition development. It’s important as it is a tool that facilitates the company with the right approach to influence customer decision-making
• Value proposition development is a powerful tool, especially when it comes to driving the marketing front of the company. A robust and compelling value proposition can help drive sales and build a customer base

How is Value Proposition Development done: In value proposition development, the customers are exposed to different hypothesis statements based on what the company wants to offer. The customer is then asked to rate the value/outcomes based on what they think the concept will offer. These can be clinical, financial, and/or operational outcomes. A Likert scale can be used to assess the different parameters