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Glossario Apparound

This section contains a collection of terms related to the digitization of sales processes, the latest innovations in technology and marketing, each accompanied by an explanation of the meaning or other observations.


Value Proposition or Customer Value Proposition (CVP)

In an increasingly competitive context, the Value Proposition – or Customer Value Proposition (CVP) – is a decisive element for differentiating one's business from the competition, aimed at attracting and retaining customers. It is, in fact, the unique and compelling offering that a company can provide to its customers, delivering tangible value compared to that of competitors.

Let's see how the concept of Value Proposition should be considered for one's organization, its importance in the contemporary context, the components that make it up, and how to create a winning value proposition.

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What is the Value Proposition

Value proposition - di cosa si tratta

The Value Proposition is the promise of value that a company makes to its customers: therefore, it is also definable as the set of benefits and solutions that the company offers to its target customers to better satisfy their needs and desires compared to the competition.

From the unique product or service offering to distinctive market positioning, the value proposition can be considered under different analytical perspectives. Let's find out together what its main components are.

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What is the Value Proposition composed of?

An effective Value Proposition is based on key components such as:

  • Customer Segments: the value proposition must be oriented towards specific customer segments it targets. It is therefore important for the company to effectively understand the needs, desires, and challenges of the target customers to create a value offer that is relevant to them.

  • Value Elements: value elements are the specific and distinctive advantages that the company offers its customers. For example, these may include unique product features, additional services, time or money savings guaranteed to the customer, availability of personalized experience, superior quality, or any other factor that creates perceived value for the customer.

  • Differentiation: the Value Proposition must be distinctive and differentiate from the competition. It must, therefore, highlight what makes the company's offering unique and special, in such a way that based on this proposition, customers choose to do business with this company rather than the competition.

  • Proof: the value proposition must be supported by tangible evidence or testimonials that demonstrate its validity. Among the various examples that can be recalled are positive customer reviews, successful case studies, sharing measurable results, or any other element that confirms the promised value.

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How to create a winning Value Proposition

Value Proposition

To create a winning Value Proposition, you can follow these steps:

  • Market and customer analysis: in-depth understanding of the target market, identification of customer segments and their needs also involves specific research on competitors to understand how to differentiate.

  • Identification of strengths: recognize the distinctive strengths of your product or service. What do you offer that is unique and valuable to customers? What are the key benefits you can offer?

  • Definition of Value Proposition: based on the gathered information, you can create a clear and convincing value proposition that can meet the needs of your target customers. Clearly and concisely communicate the benefits and solutions you offer.

  • Testing and improvement: test your Value Proposition with a sample of customers or industry professionals to get feedback and make any improvements. Ensure it is understandable, relevant and attractive to your target audience.

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The Customer Value Proposition (CVP) is the promise of value that a company makes to its customers. It represents the set of benefits, advantages, and solutions that the organization proposes to its customers to better satisfy their needs and desires compared to what the competition does.

The Customer Value Proposition is a fundamental tool for differentiation in an increasingly competitive market as it helps define the uniqueness of the company's offering, create a valuable experience for customers, and influence purchase decisions.

The key components of a Customer Value Proposition include specific customer segments, the value elements offered, differentiation from the competition, and evidence supporting the validity of the value promise.

To create a winning Customer Value Proposition, it is important to understand the market and customers, identify the distinctive strengths of the company, clearly define the benefits offered, and test and refine the proposal based on customer feedback.

The Customer Value Proposition is the guiding and driving principle of the company's entire marketing strategy: it provides a clear direction for communication, market segmentation, product development, and customer interaction.

The Unique Selling Proposition (USP) focuses on the single distinctive aspect of a product or service. In contrast, the Customer Value Proposition is a broader concept, encompassing a complete and differentiating value promise. The Brand Promise, on the other hand, represents the commitment of a company to provide a certain experience or outcome to customers.

To effectively communicate its Customer Value Proposition, the company must use clear and convincing messages, emphasize benefits to the customer, use appropriate communication channels, and support the value promise with tangible evidence.

The effectiveness of the Customer Value Proposition can be evaluated through monitoring key metrics such as customer conversion rate, customer satisfaction, retention rate, and competitive advantage gained.