The Importance of Value Proposition Quality
Since the Value Proposition drives all downstream business and marketing activities, a sub-optimal Value Proposition can impact the effectiveness of all of your downstream and outboaund marketing efforts.
The quality of your value proposition can be the difference between a business that thrives, and one that struggles to survive. The US Department of Commerce reports that 2 out of 3 business will fail in less than 10 years. The #1 reason businesses fail is the inability to deliver real value to customers. - They offer something nobody wants
- Features don’t align with customer needs and wants
- Fix a non-existent problem
- Target the wrong customer
Failure of a firm to continually revise and evolve their Value Proposition to maintain alignment with current market conditions can result in a "blow-up" of the business. In a market survey of businesses regarding value propostions: - 69% have value propositions,
- 54% had done nothing to optimize their value proposition
- less than 5% were found to have high-quality value propositions.