Every transaction has three key components - Brand, Product and Experience. The core of your value proposition lies at the intersection of these components.
“Value proposition defines the problem you want to solve for your clients and why your product/service is the best solution”, explained Ajit Narasimhan, CMO, Sundaram MF at Cafemutual Ideas Fest 2022 (CIF 22).
Addressing the attendees, Ajit spoke about some of the key aspects of value proposition.
“Get yourself noticed but understand what clients want.”
Many believe the best way to get noticed is to be seen. This is where branding and marketing come to play. However, visibility is only one aspect. It is even more important for clients to know that you are relevant. You should understand your clients’ needs, where are they coming from and how to fulfil their needs. Bringing visibility and relevance together makes your value proposition stronger.
“As an MFD, your value proposition is a way to show off your expertise.”
Start defining your value proposition by answering four key questions.
- Who are you? - Define your values as a distributor
- What services do you offer? - Talk about your products and services
- What is your process? - Define your approach and what clients can expect
- Why should the client hire you? - Differentiate yourself from your competition
“Build a value proposition canvas.”
An investor segmentation canvas comprises four quadrants - needs, expectations, pain points and investing behaviour. The last quadrant is very critical as you can validate your clients’ needs, expectations and pain points through their behaviour.
Making such a canvas helps in creating a value map, which is useful to create value out of the segmentation done. It entails solutions to specific problems, product benefits and overcoming pain points.
Once you build the value map, test your proposition through marketing channels. Start publicizing the key attributes identified in your map through social media platforms.
“Craft your value proposition.”
MFDs typically provide six key value propositions - Organizing, accountability, objectivity, proactivity, education and partnership.
You should display your value proposition prominently on your site and other client touchpoints. Use clear and easy-to-understand language and communicate specific outcomes. Give it a strong identity by using logos, colours, etc. Additionally, also highlight your key differentiating points.
Ajit lucidly took us through the process of identifying and creating value proposition. In his concluding thoughts, he said, “You don’t need to be unique to the whole world, just in the client’s mind.”
Here is a quick look at the importance of value proposition.
