Value Proposition = Product/Service Attributes (functionality and quality and price and time) + Image + Relationship. (Davis, R.)
Are value propositions all that important? Will a company benefit from it’s employees understanding and being able to explain their value proposition? I believe so. Many companies today do not focus on their value propositions and hire thousands of staff who are unable to recall what the organization stands for. The value proposition is supposed to introduce stakeholders to what the outcome is of what you’re delivering. For example, Tesco, one of Englands leading supermarkets value proposition is “every little helps” as they strive to make everything as convenient as they can. (Evaluation Value Proposition) They have made this phrase their slogan and most customers, and all employees, know this phrase and understand the meaning behind it, and with that have went on to earn massive profits constantly being in the top 5 supermarkets in England.
I think this is very important for a company to ensure that both the employees and customers have a good understanding of the value proposition so they know what they are working towards or what they are supposed to receive. However, as mentioned in the article “Why your value propositon has no value” written by Colleen stanley, it is only as beneficial as you make it. Research shows that the number one challenge most organizations have is how to portray their value. (Stanley, C.)
Thus, businesses should start working on their value propositions making sure they portray it to the employees and the customers, and will reap the benefits in the long run. Employees will feel more motivated, and as though they have a reason to be working, whether they are a sales assistant or the CEO they will feel important in being part of the bigger picture.