How can you create a value proposition using customer data?

I love customer segmentation. This is very important because it allows you to understand the behavior and habits of your clients. If you sell a product , it would be important to know who your low spenders are verses you mid to high spenders and the contribution they make to your revenue pool. This would help you understand how to set campaigns and also remedy any shortfalls.

Every business owner knows the significance of understanding their customers. While gathering all data and segmenting customers can help provide personalised services to targeted groups, it is vital to start small and learn quickly. Businesses should begin collecting data with minimal effort, continuously gather feedback, and learn from it, without waiting for CDPs or system integration.

Customer’s data is crucial in segmentation for both B2B and B2C businesses. In B2B, it helps identify businesses with similar needs, goals, challenges or preferences. In B2C, it allows companies to divide their consumer base into distinct groups based on demographics, behaviors, or preferences. By understanding the unique characteristics of each segment, businesses can tailor their offerings and messaging to better meet the specific needs of different businesses or consumers. Customer segmentation provides valuable insights that inform marketing and sales strategies, ultimately driving success in the competitive marketplace.

1. Customer Profile: ?List tasks your target customer wants to achieve, encompassing functional, social, and emotional aspects. ? Identify challenges or frustrations faced while trying to perform these jobs 2. Value Map: ? For instance, if a pain is “time-consuming tasks”, a reliever could be “automation features”. ? If a desired gain is “boosting efficiency”, a creator might be “workflow streamlining”. 3. Achieve a Fit: ? Ensure your solutions genuinely cater to your customer segment’s jobs, pains, and gains. ? Upon verifying your solutions address real problems, confirm there’s a sizable market for them. 4. Test & Iterate: ? Validate hypotheses through methods like A/B tests or pilot programs. ? Feedback & Adjust

In my early days as an entrepreneur, I co-founded a tech startup that simplified project management for small businesses. We initially focused on the value proposition of "Streamline Your Projects Easily," assuming it would meet users' needs. To test this, we created two landing pages: one highlighting "easy use" and the other emphasising "advanced features." Through targeted PPC campaigns, we drove equal traffic to both and analysed user engagement and conversion rates. Surprisingly, the "advanced features" page had a 30% higher conversion rate, indicating a stronger resonance with our target audience's actual needs. This insight helped us greatly improving our product-market fit and customer satisfaction.

Major points to consider for creating value proposition using customer data are: 1. Compare the data with global reference. 2. Create value based out come. 3. Improvise on future data generation wrt defining key parameters limits.

Using customer data to create effective value propositions can look different at different organizations. For example: Analyzing hiring metrics to improve clients ATS to source more qualified candidates. Digitally surveying customers to learn about frequent buyers' habits and presenting them with exclusive discounts and loyalty perks. Investigating customer support ticket details to find the most painful issues affecting the organization and creating a proposition to reduce IT workload through automation. Analyzing spending trends to shape offerings centered around more valuable rewards for customer spending more money on a platform.