A brand value proposition is how a product, service or solution strives to be valuable to customers. The first step in creating a value proposition is to start with the customers rather than the product or service. Find a customer first and then create a product for her instead of creating a product and then finding a customer afterwards. The second step is to look at what are the pain points faced by customers and convert this pain into gain. All customers face inconveniences of various kinds…A brand which reduces these friction points invariably wins these customers.
UBER is a great example. Earlier, in the pre UBER days, when you booked or hailed a cab, there was always some apprehension… Is this driver reliable ? Will this driver over charge me ? Does this driver know my place and the destination ? How will this driver charge ? Is it safe ? Will the car be clean ? These apprehensions get exaggerated when you choose a taxi in another big city – say Chicago or New York… Uber has solved all these challenges because it takes a few seconds to make a booking. You know exactly who the driver is and what car is going to pick you. You know how this driver has been rated and exactly what the taxi fare is. The driver knows your name and your precise location…
Hence the potential apprehensions of a customer are alleviated and the pain points are addressed. UBER’s tagline effectively captures how it delivers value to its customers. Its tagline – the Smart Way to get around is right on the money ! It is no wonder the company has a valuation in excess of USD $ 100 billion.
