The customer value proposition is t he strategy a company chooses to separate themselves from the competition. The three categories of value proposition are; 1. Customer Intimacy, 2. Operational Excellence, and 3. Product Leadership. I invite you to read the above sentences again. In this article we are going to define these three fundamental business models, which are also known as the three categories of customer value propositions.
The best companies will clearly communicate their value proposition in their targeted advertising campaigns and clearly integrate their customer value proposition in their daily operations. It is important to not confuse the customer value proposition with the unique selling proposition.
While they sound similar and have similar qualities, they are very different. Go here for a very helpful article that explains the difference between the two:. Unique selling proposition vs value proposition with examples.
When a company chooses their value proposition strategy, they have important decisions to make that have a profound impact on:. Then, of course, this highly impacts sales and marketing strategies and how messaging is communicated to the customer.
Snap fitness cheaper hour key club and Walmart are examples of this strategy. Companies that choose the product leadership strategy are saying you should choose us because we offer a higher quality product than our competitors. Apple, Orange Theory and Cisco Systems are examples of companies that succeed because of product leadership. Interestingly, product leaders act fast and avoid bureaucracy at all costs because it slows decisions and time to market.
