Opus Magnum

A Value Proposition is a promise of value to be delivered to a customer. It represents a bundle of products and services that create value for a specific customer segment and need or desire

It is the main reason customers choose one company over another.

I am going to use the word product here to mean product or service.

A Value Proposition is one of your most important conversion factors. It is the first thing a visitor should see when visiting your web site. It is the most significant thing that determines whether people will bother reading more about your product or service.

A Value Proposition is not a slogan or a positioning statement. Rather, it is used to define a promised value for a single product or a specific product bundle. Each value proposition should address a specific customer segment. Depending on the variety of products, or the variety of customer segments, you can have one value proposition that covers the whole business or one for each different product or product bundle. In many cases, there is a difference between the value proposition for your company and your product. If so, you should address both.

Wikipedia states: “A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.”

Even if you provide the same product to different customer segments, it is important to have a different value proposition defining the specific value for each customer segment. If you find it difficult to differentiate, you might be too vague in your definition of the customer segment.

When writing a value proposition, always strive for clarity. If the readers must look through a lot of text to understand your offering, you’ve got it wrong. Sufficient information for clear understanding is crucial for converting readers to customers, but you need to draw them in with a clear, compelling value proposition first.

Before you embark on creating your value proposition or propositions, you should do the following:

1. Clearly identify your product and its benefits. Do this for each product if you have more than one.
2. Identify the target market to whom your product will provide its benefits.
3. If you have more than one product repeat step 2 for each product.
4. If you have more than one target market for each product repeat step 2 for each target market.
5. Identify your competition and their competing offerings.
6. Determine how your offering differs from the competition.
7. Identify social and physical proof that your product does what you claim.
8. Identify any options that your target market has to acquiring and using your product.

Now you are ready to start creating.

Here are some suggested elements of a Value Proposition:

• A headline – describing the benefits
• A sub headline or paragraph – explaining what, to whom and why
• Bullet points (optional) – listing benefits and/or features
• A visual element – image or video

Consider each of the following questions:

• How do I make it clear and easy to understand?
• Who it is for and how it is useful to them?
• Have I communicated benefits or results a customer will get from purchasing and using my products?
• How is my offer different or better than my competitor’s offer?
• Have I avoided hype, superlatives and business jargon?
• Can be read and understood in about 5 seconds?

Creating a Value Proposition is one of the focus tasks undertaken in the Reality Business Game “Follow That Dream” You can find out more about the game by sending an email with the subject line – game Information request to peter@www.opusmagnum.com

Meaningful conversation energises us and stimulates our creativity. We are hardwired with a neural network that not just allows us to connect but drives us to connect with others.

The level of connection depends on trust. At the lowest level that means lack of threat, at the highest level that means confidence that the behaviour and response of another will meet our expectations.

All human connections will trigger our neural chemistry and create emotional and logical responses based on level of trust. We communicate to build relationships. In this article, I am primarily addressing business relationships.

So, let’s think in terms of three levels of communication:

1 – Transactional; which basically means telling and to ask and answer questions to discover something. This is usually the first level of interaction with someone new to us. This usual behaviour for low or unestablished trust.

2 – Positional; is to use power and influence to engage, advocate/Inquire, this translates to giving away some of ourselves in terms of knowledge or feelings as well as probing others for a greater depth of discovery. This involves a medium level of trust, one that is perhaps building or has reached a working level.

3 – Transformational; is about sharing and discovering at the deepest level and requires the highest level of trust. This is about creating a future that involves mutual success.

Our prefrontal cortex enables us to build relationships, use good judgement and build trust. We are designed to pursue partnerships and to form teams.

However, communication can create threats in terms of insults, denigration or pressure.

if we feel in any way threatened by the communication then our amygdala kicks into action and concentrates on defensive or aggressive response strategies. When this occurs, blood flow is effectively cut off from the prefrontal cortex and we no longer perform with rational judgement but instead draw on our history of negative experiences and respond accordingly.

If we put this in terms of a request to connect on, for example, LinkedIn. A recipient of the request may view it suspiciously and engage negative responses or may see it as an opportunity and look at it positively. That may depend on the content of the request and the profile of the requestor.

If after agreeing to connect, there is an early attempt to influence, dominate or use the connection, then it becomes a threat instead of an opportunity.

My purpose in connecting is to seek long term interactions that involve sharing of experiences and ideas, inevitable that is mutually beneficial. So, is this aimed at increasing my business? A mutually beneficial outcome should always improve something for both parties, and not necessarily directly but through mutual connections. This however, is a long- term result and can only be achieved by moving through the three levels of communication introduced above. It takes time and effort.

Unfortunately, too many people are in a rush to get results and may damage a relationship before it matures.

Not every connection is destined to result in a meaningful exchange or relationship. But every request is like someone coming up to you at a networking event and offering a handshake. You should treat it with courtesy and see it as a possibility. You never know where the strangest relationships might take you.

How can we win at business in this uncertain and competitive environment today?

Gamification is one of the fastest growing business tools. We apply gaming principles to the business process to increase the chance of success srate.

Is it serious?

Making a game of something doesn’t make it less serious. In fact, it might well make it even more serious. Consider how seriously people take some games. Olympic sports for example, have you noticed how emotions can run high in card games or gambling. The moment of participation in an important game can generate amazing focus, energy and emotional levels.

Gamification is the term used for the application of gaming principles and game design elements to serious activities. It includes:

• The application of game-design elements in non-game contexts to make them more fun and engaging.
• A game environment that leverages people’s natural desires for socializing, learning, competition, achievement, status and self-expression.
• Making rewards for accomplishing tasks visible to other players by providing progress and score boards.

What value does it have?

Gamification is a powerful mind tool with proven outcomes. What can it do for you?

• Produce better business results
• Accelerate learning
• increase productivity and motivation
• Increase problem solving skills

It Create positive effects on people, regardless of individual and contextual differences.

Benefits to business

• Developing effective growth strategies
• Building the right business model
• Identifying and mitigating risks
• Setting the right goals and targets
• Testing and measuring progress

What is the difference between simulation and reality?

Simulations create artificial environments with realistic effects that allow you to try things out in theory, reality allows you to work on your real business while playing the game.

There are many very effective business simulation games available, Follow That Dream business startup programme is currently the only reality business game. To find out more, go to www.opusmagnum.com/follow-that-dream