How Unique is Your Value Proposition? Part 2

"Doesn't everybody do that?"  It's the question marketers dread most. You've worked hard to construct a value proposition, only to have prospects view it as nothing unique.

How can you differentiate to rise above the market noise?
My advice is simple:  bust your value proposition into two pieces. What is your value in terms of price/performance?  What is your business proposition? By examining each piece of the equation, you can re-assemble your value proposition into something unique in no time.

In Part 1, we started with the meaning of value. By way of review, ask yourself "How does my solution perform at a price that is superior to alternatives?"

If your price/performance is competitive, you're in great shape. If it isn't, fear not. The "proposition" side of the equation can pump more value into your offering. And, it's the proposition piece that usually brings unique attributes to an offering, especially those that have fallen into commodity status.

"Let me make you a proposition."

We've all heard this phrase before (especially from car dealers). A proposition if an offer to do business. Propositions are used to structure deals. Simple cases include money-back guarantees or warranties.

How business propositions extend value.
Think of a time you had bought off on a product's price/performance - but still weren't buying, so the seller sweetened the deal by offering a "way to do business" or a unique proposition that a competing seller wasn't willing to provide.

Business propositions extend base price/performance, often at little or no expense to the seller. A money back guarantee might have tipped you into the seller's court, but if was never invoked, the seller won your business over the competition, not from superior price/performance but from the business proposition they were willing to make.

JetBlue offers a perfect example. Though its price/performance is more competitive than other airlines, JetBlue's executives were smart to realize they couldn't rest on that for long. As other airlines have matched their price/performance, JetBlue has remained in the lead with a superior proposition:

"JetBlue is a low-fare, high service airline, where all seats are assigned, all travel is ticketless, all fares are one-way, and an overnight is never required."

JetBlue stays out of the noise by differentiating themselves with more than price, using service and convenience to extend their value. Think of other examples, where you as a buyer, awarded your business to the seller with the more compelling business proposition. In fact, you'll soon recall many cases where price/performance was less competitive, but you were willing to pay due to the seller's more compelling deal.

Think about it. Does anyone go to the Hard Rock Cafe for the food? By getting back to the basics of value proposition, you can start differentiating more effectively.