Startup Fundamental # 6 - Speaking Customer Language: Value Proposition 101
Jan 12, 2025
In the world of startups, having a great product isn’t enough – you need to communicate its value in a way that resonates with your customers. Let’s explore how to transform technical features into compelling value propositions that speak directly to your customers’ needs.
Understanding the Translation Process
The Three Levels of Communication
1.Technical Features
1. What your product does
2. How it works
3. Technical specifications
2.Customer Benefits
1. Problems solved
2. Value delivered
3. Improvements made
3.Emotional Impact
1. How it makes customers feel
2. Life improvements
3. Aspirational elements
The Art of Translation
From Features to Benefits
1.Identify Core Features
1. List technical capabilities
2. Document specifications
3. Map functionalities
2.Extract Benefits
1. Time saved
2. Money saved
3. Problems solved
4. Convenience added
3.Connect Emotionally
1. Peace of mind
2. Status achievement
3. Life improvement
4. Goal attainment
Customer Language Framework
Step 1: Listen First
1. Conduct customer interviews
2. Monitor social media
3. Review support tickets
4. Analyze reviews
Step 2: Identify Patterns
1. Common phrases
2. Shared pain points
3. Frequent requests
4. Emotional triggers
Step 3: Create Your Lexicon
1. Customer vocabulary
2. Industry terms
3. Emotional triggers
4. Relatable examples
Translation Examples
Technical → Customer Language
1.Cloud Storage
1. Technical: “Distributed cloud architecture”
2. Benefit: “Access files anywhere”
3. Customer: “Never lose your work”
2.AI Features
1. Technical: “Machine learning algorithms”
2. Benefit: “Smart recommendations”
3. Customer: “Always finds what you need”
3.Security
1. Technical: “End-to-end encryption”
2. Benefit: “Data protection”
3. Customer: “Your information is safe”
Writing Effective Value Propositions
The Formula
[Product/Service] helps [Target Customer] who want to [Goal/Desire] by [Benefit] unlike [Alternative].
Examples
1.Simple
1. “Design beautiful websites without coding”
2. “Get dinner delivered in 30 minutes”
3. “Learn a language in 10 minutes a day”
2.Detailed
1. “Help small business owners save 10 hours per week on bookkeeping”
2. “Enable remote teams to collaborate as effectively as if they were in the same room”
3. “Give parents peace of mind with real-time updates about their child’s location”
Testing Your Message
Validation Methods
1.A/B Testing
1.1 Landing pages
1.2 Email subject lines
1.3 Ad copy
1.4 Call-to-action buttons
2.Customer Feedback
2.1 Surveys
2.2 Interviews
2.3 User testing
2.4 Focus groups
Common Pitfalls to Avoid
-
Technical Jargon
1.1 Using industry terms
1.2 Complex explanations
1.3 Technical specifications
1.4 Internal vocabulary
-
Feature Focus
2.1 Listing capabilities
2.2 Technical details
2.3 Specifications
2.4 How it works
-
Generic Claims
3.1 “Best in class”
3.2 “World-class”
3.3 “Revolutionary”
3.4 “Game-changing”
Creating Your Value Proposition
Step-by-Step Guide
1.Research Phase
– Customer interviews
– Competitor analysis
– Market research
– Pain point identification
2.Development Phase
– Feature listing
– Benefit extraction
– Language translation
– Message crafting
3.Testing Phase
– Customer feedback
– A/B testing
– Message refinement
– Performance tracking
Action Plan
Week 1: Research
– Interview 10 customers
– Review competitor messaging
– Collect customer feedback
– Document pain points
Week 2: Development
– List all features
– Extract benefits
– Craft messages
– Create variations
Week 3: Testing
– Run A/B tests
– Gather feedback
– Measure results
-Refine message
Week 4: Implementation
– Update website
– Train team
– Launch campaigns
– Monitor results
Conclusion
Speaking your customer’s language isn’t about dumbing down your message – it’s about making your value proposition clear, relevant, and compelling. Remember: customers don’t buy features, they buy benefits and outcomes. Make sure your communication reflects this fundamental truth.
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