What are the steps to developing a value proposition for complex products?

2 Analyze your product features and benefits

The second step to developing a value proposition for complex products is to analyze your product features and benefits. Product features are the attributes and capabilities of your product or service, such as functionality, quality, design, or performance. Product benefits are the outcomes and results that your product or service delivers to your customers, such as cost savings, increased efficiency, or improved satisfaction. You need to identify and prioritize the most relevant and important features and benefits of your product or service for each customer segment. You can use tools such as feature-benefit matrix, value chain analysis, or SWOT analysis to evaluate your product features and benefits.

3 Evaluate your competitive advantage

The third step to developing a value proposition for complex products is to evaluate your competitive advantage. Competitive advantage is the reason why your customers choose you over your competitors. It is the unique value that you offer that sets you apart from the rest. You need to identify and emphasize your competitive advantage for each customer segment. You can use tools such as competitor analysis, positioning map, or value proposition canvas to assess your competitive advantage.

4 Craft your value proposition statement

The fourth step to developing a value proposition for complex products is to craft your value proposition statement. This statement should be concise and clearly explain how your product or service solves your customer's problems, delivers benefits, and differentiates you from the competition. It should answer three questions: What do you offer? How does it help your customers? Why should they choose you? You can use templates, formulas, or frameworks to structure your value proposition statement. For example, you can say “For [customer segment], who [need or problem], our [product or service] is a [category or solution] that [benefit or value]. Unlike [competitors or alternatives], we [competitive advantage or difference]”. Or, you can say “[Customer segment] can [benefit or value] with our [product or service], because we [competitive advantage or difference]”. Additionally, you can express that “We help [customer segment] [benefit or value] by [product or service], unlike [competitors or alternatives] who [competitive disadvantage or weakness].”

5 Test and refine your value proposition

The fifth step to developing a value proposition for complex products is to test and refine your value proposition. A value proposition is not a static or final statement. It is a dynamic and evolving message that needs to be validated and improved based on feedback and data. You need to test and refine your value proposition for each customer segment and ensure that it is relevant, clear, compelling, and credible. You can use tools such as A/B testing, customer feedback, or metrics to measure and optimize your value proposition.

6 Communicate your value proposition

The sixth and final step to developing a value proposition for complex products is to communicate your value proposition. A value proposition is not only a statement, but also a strategy and a story. You need to communicate your value proposition effectively and consistently across all your touchpoints and channels with your customers, such as your website, sales pitch, marketing materials, or customer service. You need to tailor your value proposition for each customer segment and situation and use storytelling, visuals, testimonials, or case studies to support and illustrate your message.

7 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?