Companies can no longer rely on product/service differentiation strategies as their mainstay for a sustainable competitive advantage. This is due in part to the increasing sophistication of consumers who now take into consideration the social, environmental, and ethical make-up of the goods and services they select both as individuals and as corporations.
Consumers increasingly expect more from today’s brands, and the implications of falling from the top spots in a category can be substantial. Beyond merely transacting, brands need to form an emotional connection with customers. Technological advances in general—and the internet and social media in particular—have made it easier than ever for brands to form meaningful relationships with customers.
What is a customer value proposition exactly? There are lots of definitions, but our brand consultancy's managing partner, Mitch Duckler, defines value as “…the sum total of the offerings and experiences delivered to customers during their interactions with an organization, product, or brand. If well crafted, it can sharpen the way an organization works by focusing activity to serve customers profitably.”