Understanding Value proposition is a key thing for any Business. Unless you experience(feel just like the customer) as to what is a strong value proposition you are offering, there is no way you can actually create one. A very interesting story of a simple independent venture makes me wonder – Is it possible that every business venture(aka service offering, product offering, …) can offer a solid value proposition to all(at least majority) of its customers. And I am not talking about a plain vanilla satisfaction but a very compelling one which brings the customer back and again even if there is no need for him to buy it(services, products…).
I’m talking about Veekes and Thomas Restaurant which has five principal offerings
To begin with they are really cheap for a plate. For about 100 bucks($2) a plate(for the most exclusive non-veg stuff) and a lot many lower than that, you are spoilt for choice in continental food. Best of all it has very simple things to offer which includes a simple menu and simple cooking without strong marinades and spices, no fuss order online concept(without payment – they collect on delivery). They do not have a place to sit so you enjoy your food at home(there is no choice here). Delivered in boxes which are bio-degradable and recyclable. The packaging is simple with use of traditional disposable plates and fork. Inspite of all this the food tastes awesome and authentic and you do not feel you had a low-scale dining experience. That is because you always place an order to a person who is excited about the food they serve. They are enthusiastic, aware and want to recommend items. You feel you had a fine dining experience at home.
All in all it’s the whole customer experience which matters and which defines the value proposition in a business like this.
Bottom-line: With a good quality product/offering if you are excited , positive about the offering you have and accentuate it with uncomplicated offerings you are bound to make an exciting value proposition to your costumers.
What do you need to have this
· Understand to whom you are offering what you are offering. What matters more?
· Focus on listening well to your customers – continuously and vehemently.
· Attention to details makes the experience complete.
· Stay excited about your work and hire equally excited people to make that positive impression.
Of course internally you have to
· Understand your constraints right and play well (work out a clear financial model)
· Focus vehemently on quality as a default objective. You don’t have to have correction systems.
I can’t help but to compare this to my previous post about compelling innovation. If you connect the dots, a compelling innovation has to have a strong value proposition but not necessarily vice versa (any thoughts on this?). Also maybe a compelling innovation makes no sense for me..and hence no value proposition. (what would go-gurt mean to a lactose intolerant person?)
Is it an observation for you that very innovative things are often simple?
Is it also necessary that a value proposition is often based on simplicity? How complex can it get?