Customer Value Proposition

A Customer Value Proposition is a company value proposition whose target audience is their customers.

• Context:
  • It can (typically) define the unique benefits or value a company offers its customers.
  • It can (often) focus on solving specific customer pain points, improving customer satisfaction, or addressing the needs of a particular customer segment.
  • It can (often) be a critical component of the overall business strategy and serve as a foundation for marketing communications.
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  • It can range from being a broad message applicable to a wide audience to a specialized proposition tailored for a niche market.
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  • It can highlight key features or benefits of a product, service, or brand that are most relevant to the target customer group.
  • It can be represented through various forms such as a tagline, slogan, or more detailed descriptions on marketing materials.
  • It can influence customer decisions by emphasizing the value offered in terms of quality, price, or experience.
  • It can also guide product development and innovation by aligning features with customer expectations.
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• Example(s):
  • An Apple Inc. Customer Value Proposition that emphasizes premium design and innovative technology for users seeking high-quality electronics.
  • A Walmart Customer Value Proposition focused on providing "Everyday Low Prices" to budget-conscious customers.
  • A Tesla Customer Value Proposition that highlights sustainable, high-performance vehicles appealing to environmentally conscious drivers.
  • A LegalOn Customer Value Proposition (LegalOn value proposition).
  • ...
• Counter-Example(s):
  • A Shareholder Value Proposition, which targets the value offered to investors rather than customers.
  • An Employee Value Proposition, which focuses on benefits provided to employees rather than customers.
  • A Supplier Value Proposition, which targets the value provided to suppliers, such as reliable procurement and long-term partnerships.
• See: Unique Selling Proposition, Business Strategy, Marketing Communications, Organizational Value Proposition.

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References

2024

• (Wikipedia, 2024) ⇒ https://en.wikipedia.org/wiki/Customer_value_proposition Retrieved:2024-9-30.
  • In marketing, a customer value proposition (CVP) consists of the sum total of benefits which a vendor promises a customer will receive in return for the customer's associated payment (or other value-transfer).

    Customer Value Management was started by Ray Kordupleski in the 1980s and discussed in his book, Mastering Customer Value Management.

    A customer value proposition is a business or marketing statement that describes why a customer should buy a product or use a service. It is specifically targeted towards potential customers rather than other constituent groups such as employees, partners or suppliers. Similar to the unique selling proposition, it is a clearly defined statement that is designed to convince customers that one particular product or service will add more value or better solve a problem than others in its competitive set.

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