A value proposition is a crucial aspect of any company’s business model as it indicates what impact is expected for customers and the economy. Indeed, the statement should concisely explain why the offered product or service exists and the benefits of purchasing it (McKeown & Durkin, 2016). Companies display propositions at their official sources; however, they frequently fail to deliver their promises in practice, causing conflicts and negative customer experiences. Thus, more attention from executives and employees is necessary for developing appropriate values and following them consistently. This paper aims to discuss the personal understanding of the meaning of value proposition companies’ business models and customer experiences.
A value proposition is used differently: companies perceive it as a core to their long-term business strategy development, building their daily operations, or setting marketing campaigns. Regardless of the initial purpose, statements must be clear to each employee, executive, and customer to make proper decisions and have a correct image (Payne et al., 2020). Value proposition serves as an expression of internal positioning developed by the executives through messaging understandable to the target customer (McKeown & Durkin, 2016). Furthermore, statements display a company’s competitive advantage; therefore, being specific about distinctions is essential. Delivering the promises is crucial for a positive customer experience, and most businesses build their operations around the statements.
According to modern companies’ strategies and operations, value propositions are mostly applied for business model development and positively impact consumers’ perception of a brand. For instance, Lush, a British sustainable hand-made cosmetics producer, indicates that their product is not tested on animals and all materials are harmless to the environment (Lush, n. d.). These conditions are reflected in their operations, influence prices, packaging, marketing, and attract specific client groups; thus, a proposition serves as a core to their business strategy and image. Customers tend to associate themselves with companies they prefer, and a person who advocates for ecology would positively react to the brand’s campaigns where their values are displayed. In my understanding, Lush is an example of a successful value proposition because its statements are clear to millions of consumers worldwide, and the company has fully delivered its promises for many years.
I have experienced the influence of correct value proposition from the perspective of being a customer who makes their purchasing decision and a company employee whose responsibilities depend on the statements. As a consumer, I do not expect to see the promises of good quality or reasons to buy a product on each package. I seek sufficient actions from the company to display their merits, such as design, functioning, and price determination, that would be appropriate to me and align with my worldview (To et al., 2020). I worked at Nike in the past, and from the employee’s perspective, a value proposition is a key to correct decision-making. The famous brand aims to demonstrate that sport is available and appealing to everyone. Therefore, my interactions with clients in stores required me to deliver the experience through which their motivation to do athletic activities increased along with their loyalty to Nike.
A value proposition is an aspect of strategy development applicable to all businesses regardless of what they offer because these statements determine what to expect from customer experience. Indeed, brands build their marketing and operations around the internal positioning that expresses their merits and initial reasons for launching a company. My understanding is based on the course materials about what should be delivered in the values stated and how it can be noticed through campaigns and actions. My experience as a Nike employee and average consumer also served as significant assistance in identifying how the propositions influence different businesses’ operations.
References
Lush. (n. d.). Our values. Web.
McKeown, N., & Durkin, M. (2016). The seven principles of digital business strategy. Business Expert Press. Web.
Payne, A., Frow, P., Steinhoff, L., & Eggert, A. (2020). Toward a comprehensive framework of value proposition development: From strategy to implementation.Industrial Marketing Management, 87, 244-255. Web.
To, C. K., Chau, K. P., & Kan, C. W. (2020). The logic of innovative value proposition: A schema for characterizing and predicting business model evolution.Journal of Business Research, 112, 502-520. Web.