What is Your Unmatched Customer Value Proposition?

Have you noticed that it is getting harder and harder to compete in today’s marketplace? As customers demand and expect more, we must ensure that we offer an unmatched value proposition to our target customers. In the book, “The Discipline of Market Leaders,” the authors explain that there are 3 key value proposition models and each of us must focus on one and only one of these propositions, while, at the same time, giving appropriate attention to one or both of the other two. The three propositions are described below:

Operational Excellence - If we serve a broad audience, we must ensure that our products or services are delivered in the most cost-effective manner. We don’t necessarily have to offer the lowest possible price, but should be perceived as the lowest total cost provider; e.g. “hassle-free” service. Southwest Airlines and Wal-Mart are two of the best examples of “Operationally Excellent” companies.

Customer Intimacy - Perhaps you cater to a very narrow segment of the population; your emphasis here must be on developing deep, lasting relationships and providing tailored solutions. Nordstrom is an excellent example of a “Customer Intimate” company.

Product Leadership - You may operate a highly innovative organization that thrives in a dynamic, ever-changing market. This type of organization must continuously create new products or services that meet the rapidly changing needs of its target audience. Disney, for example, was already working on its next blockbuster shortly after introducing The Lion King. Another organization, Intel, tries to make its own products obsolete before its competitors do.

Again, the trick is to focus on one of these key customer value propositions without ignoring the other one or two. One of the reasons Southwest Airlines has been exceptionally successful is that it is not only operationally excellent, but that their people go out of the way to make their customers feel welcome.

Have you determined your unique value proposition? Would your staff agree with the model you’ve selected?

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