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How do you test and refine your value proposition based on customer feedback?

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A value proposition is a clear and concise statement that explains how your product or service solves your customers' problems, meets their needs, and delivers benefits. It is one of the most important elements of your relationship marketing strategy, as it helps you attract, retain, and grow your customer base. However, a value proposition is not something you can create once and forget. You need to test and refine it based on customer feedback to ensure that it is relevant, compelling, and differentiated. In this article, we will show you how to do that in four steps.

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1 Step 1: Identify your target audience

Before you can test and refine your value proposition, you need to know who you are testing and refining it for. Your target audience is the group of customers or prospects that you want to reach and serve with your product or service. You can use various criteria to segment your target audience, such as demographics, psychographics, behavior, needs, goals, pain points, and preferences. The more specific and detailed you are, the better you can tailor your value proposition to their expectations and motivations.

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Kimberley Upton

Head of Planning
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Focus on where your growth is going to come from, and go from there. It’s rarely a one-size-fits-all approach. Your value proposition will likely be nuanced based on the unmet needs, behaviours & missions of each segment. For example, the message you’d need to land to create category growth will be very different to if you’re driving reappraisal with your lapsed buyers.

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2 Step 2: Collect customer feedback

Once you have identified your target audience, you need to collect their feedback to understand how they perceive your product or service, what they value most about it, and what they think you can improve. There are many ways to collect customer feedback, such as surveys, interviews, focus groups, reviews, testimonials, social media, analytics, and user testing. The key is to ask open-ended questions that elicit honest and constructive responses, and to listen actively and empathetically to what they say.

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3 Step 3: Analyze and prioritize customer feedback

After you have collected customer feedback, you need to analyze and prioritize it to identify the most important insights and themes. You can use various tools and methods to organize and visualize your feedback data, such as spreadsheets, charts, graphs, word clouds, affinity diagrams, and customer journey maps. The goal is to find patterns and gaps in your feedback that reveal what your customers care about, what they like and dislike about your product or service, and how you compare to your competitors.

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4 Step 4: Test and refine your value proposition

Based on your analysis and prioritization of customer feedback, you can test and refine your value proposition to make it more aligned with your customers' needs, wants, and emotions. You can use different formats and channels to communicate your value proposition, such as headlines, slogans, taglines, logos, images, videos, stories, and testimonials. You can also use different techniques to test your value proposition, such as A/B testing, split testing, multivariate testing, and landing page testing. The aim is to measure and optimize the impact of your value proposition on your customers' behavior and satisfaction.

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Kimberley Upton

Head of Planning
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Value propositions sit on a sliding scale from functional (use us in more ways than you could imagine) to emotional (get more out than what you put in), transformational (we can change your life) to societal (we’re an enabler of cultural change). Comparative research will reveal which spaces you can credibly own, and how far you can stretch to. Test sentiment & consideration alongside price elasticity - the higher the perceived value, the more people will pay.

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5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you test and refine your value proposition based on customer feedback?

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1 Step 1: Identify your target audience

2 Step 2: Collect customer feedback

3 Step 3: Analyze and prioritize customer feedback

4 Step 4: Test and refine your value proposition

5 Here’s what else to consider

Relationship Marketing

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