What is a Value Proposition?
A value proposition is an implicit promise a company makes to customers to deliver a particular combination of values. Each proposition searches for the unique value that can be delivered to a chosen market. Thus, value propositions help organisations to focus on a selected market and narrow their operational focus (Treacy and Wiersema, 1996; Martinez and Bititci, 2000, 2001).The term “value proposition” is relatively new and places emphasis on companies to change from the traditional functional view of activities to an externally oriented view in the form of value delivery (Bower and Garda, 1985; Martinez, 2003). It looks at a business from a customer perspective, rather than internally oriented activities and can be achieved as a consequence of a reciprocal relationship between organisations and stakeholders in a network (constellation) (Norman and Ramirez, 1999).
Just about every consumer likes the idea of a value proposition. Essentially, a value proposition is the something that helps to provide some form of additional satisfaction to the client as a result of using a good or service over the products offered by a competing organization. Typically, the value proposition is provided in the form of quality customer service, the ability of the product or service to be slightly adapted to the demands of the customers, or some added feature that is unique to the brand. Here are some examples of value propositions that are often used to distinguish a company within a given industry. Setting up an effective customer service department is one way of establishing a value proposition for new and existing clients. All other factors being equal, the presence of effective client support can make the difference between a high level of customer satisfaction that keeps clients coming back for more, and a company that quickly becomes yesterday’s news. Staffin
