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5 Steps to Developing a Unique Value Proposition for Auto Repair Shops

Businesses succeed by providing value to customers. The unique value proposition is the statement of the means by which value will be provided to a specific target audience. In the course of building a business model the statement of unique value proposition is the lynch pin of the entire definition. The unique value proposition aligns service offerings with customer perceived value. It also establishes differentiation and competitive advantage. The actual end product of any service offering is value provided. And if value provided is closely aligned with value sought – successful long term relationships will result. Following are keys to developing effective value propositions:

Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation … Robert S. Kaplan

  1. Define the Market the Value Proposition Targets – Value propositions must be developed to focus on a specific target market. The overall objective is to specifically address the needs of a customer profile in such a way that their experience is exceptional as compared to other alternatives.
  2. Identify What the Market Considers Most Valuable – Any target market will consider a short list of benefits as most significant to their satisfaction. The best information will come directly from the prospects or customers themselves.
  3. Formulate Marketing, Service and Delivery Methods – The purpose of defining what a group of customers considers as value is to create methods that highlight and provide value as the customer perceives it. Marketing messages that stress customer perceived value, service offerings that align with their desires and delivery methods that satisfy their primary objectives will create the most optimal mix of value components.
  4. Identify Alternative or Competing Options – To ensure the impact of your value proposition it’s essential to identify and compare alternatives that the customer may pursue. This exercise will provide a realistic view of the competitiveness of your offering. This comparison should not be viewed as confirmation but rather should identify areas of excellence.
  5. Substantiate the Uniqueness of Your Proposition – A unique value proposition is only effective if it is in fact unique and if it provides a superior offering in the view of the customer. The name ‘Value Proposition’ indicates that the objective is to provide the value that the customer seeks. The term ‘Unique’ means that the delivery of value is done differently and in a superior way to alternative options.

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