There are many things that may seem to be the most important factor in your company's success. But the truth is that the only thing that matters is why you are better than the existing options.

Differentiating your product is critical in building a customer base and establishing market share. This is identified as the customer value proposition. This proposition is defined as the “overall advantages or benefits that a customer derives from doing business with a particular vendor.” 

Knowing this, how do you develop an understanding of the benefits and advantages that a potential customer would experience by engaging with your good or service?

Forbes featured a process for establishing customer value that involves three steps:

1. Identifying customer benefits

2. Linking these benefits to mechanisms for delivering value

3. Mapping the basis for differentiation or market play

This may seem easy but it requires extensive research and strategy to implement. And the key to identifying these steps is to understand the distinction between the benefits that you, the company, see and what the customer would see. What are some ways to make this process actionable?

Here are our tips for breaking down this process:

• Make a list of benefits (it’s as simple as a grocery list)

• Find a focus group that includes your team and initial supporters but also involves people unaware of your product

• Start with one sector or market and go through the value proposition process one sector at a time

• Collect customer feedback from anyone engaging with your good or service

• Create a value proposition statement to bring all your research and feedback into one clear area of focus

What tips would you add for developing value proposition?