Have you ever listened to a presentation and walked away thinking “I really don’t understand what they actually do” or simply “So what? That’s not special". The value proposition describes the benefits you offer your customers at the relative price.
To convince stakeholders of these benefits you need to have a strong and credible value proposition. Learn how to develop this powerful tool to help your stakeholders understand and share your vision in this short video.
NABC Value Proposition
Stanford Research International (SRI) define a value proposition as ‘an important client or market Need addressed by a unique Approach with compelling Benefits when compared with Competition or alternatives.’: The NABC Value Proposition. An NABC comprises the four fundamentals that define a project's value proposition:
- Need: What are our customers’ and users’ needs? A need should relate to an important and specific client or market opportunity, with market size and end customers clearly stated. The market should be large enough to merit the necessary investment and development time.
- Approach: What is our compelling solution to the specific client need? Draw it, simulate it or make a mockup to help convey your vision. As the approach develops through iterations, it becomes a full proposal or business plan, which can include market positioning, cost, staffing, partnering, deliverables, a timetable and intellectual property (IP) protection. If you are developing a product, it should also include product specifications, manufacturing, distribution and sales.
- Benefits: What are the customer and user benefits of your approach? Each approach to user need results in unique benefits, such as low cost, high performance or quick response. Success requires that the benefits be quantitative and substantially better - not just different. Why must you win?
- Competition: Why are your benefits significantly better than the competition? You must be able to tell your customers, partners and end users why your solution represents the best value. To do this, you must clearly understand your competition and to clearly state why your approach is
substantially better. Your answer should be short and memorable.
Develop a pitch which addresses those 4 elements. To do so requires a deep understanding of your users, the overall market for your oer, and the specific target market segment.