3. Identifying Your Value Proposition /

3.1 Describing your value to customers

STANDARD:

We can explain what makes us the best choice for customers.

To meet the standard in full, you can explain what makes you better than your competitors at reaching customers, solving their problems, meeting their needs and wants, and ensuring that they come back.

To be successful as a social enterprise and make an impact, you will need a product or service that customers value.

In any business, customers assess what you offer based on some combination of price and perceived value.

Bain and Company have usefully identified 30 universal elements of customer value. These satisfy customer needs from very basic functional needs through to providing life-changing transformations.

Knowing what customers value is essential if you are to attract more customers and encourage them to come back again.

You can use a Value Proposition Canvas or similar tool to help clarify your customer’s needs, and design products and services they want. You might find this helpful in finding that magic fit between what you produce or provide and why people buy it.


But how can you check whether you are achieving customer value? There are many ways that companies express and measure this. This includes performance measures relating to:

  • Customer referral
  • Customer reach
  • Customer experience
  • Customer satisfaction
  • Customer loyalty

You can find out more about customer value in Course 3 of the Impact Practice series, and associated performance indicators in Course 5 (Using Performance Indicators).