Three mistakes we make when communicating the value of our products.
1. Starting in the wrong place.
One of the key mistakes businesses often make when communicating the value of their products is starting in the wrong place. This usually happens when companies focus excessively on differentiating their products from competitors, without first understanding why these differences matter to the customer. While uniqueness is a critical aspect of a product’s value proposition, its relevance to the customer’s needs and desires is what truly makes it compelling.
When businesses jump straight into explaining how their product is different, they risk overlooking the fundamental question of how these differences address specific customer problems or improve their situation. For example, a tech company might emphasise its product’s advanced features, but if these features don’t solve a real problem or improve the customer’s experience in a meaningful way, the message loses its impact. The key is to first establish a connection with the customer’s needs and then frame the product’s unique aspects as solutions to those needs.
2. Leading predominantly with the facts.
The second significant mistake in communicating the value of products is leading predominantly with the facts, focusing only on tangible aspects like features and benefits to justify the price. This approach often reduces products and services to mere commodities, ignoring the emotional and experiential elements that play a crucial role in customer decision-making.
When companies emphasise only the factual aspects of their products, such as specifications, functionalities, and practical benefits, they miss an opportunity to connect with customers on a deeper level. While these details are important, they do not entirely capture the essence of a product’s value. Customers don’t just buy products for their features; they buy them for the experiences, feelings, or solutions these features enable. For instance, a smartphone’s value isn’t solely in its camera megapixels or battery life, but in how it enables users to capture important moments or stay connected without frequent recharging.
This mistake is particularly prevalent in technical or feature-rich industries, where the temptation to showcase product superiority through specifications is strong. However, focusing solely on these aspects can lead to a race to the bottom, where the only differentiator becomes the price. This commoditisation strips away the uniqueness of the product and overlooks the intangible benefits that often hold greater appeal.
To avoid this pitfall, it’s essential to strike a balance between tangible and intangible value. This means not just talking about what the product is and what it does, but also about what it means for the customer. How does it make their life easier, better, or more enjoyable? What emotional needs does it fulfil? Is it about status, convenience, security, or pleasure?
In essence, successful product communication should weave a story that encompasses both the practical and emotional aspects of the product. It should illustrate not just the ‘what’ and the ‘how,’ but also the ‘why’ – the deeper reasons that make the product truly valuable to the customer. By doing so, businesses can elevate their offerings above commodity status, creating a more compelling and resonant value proposition.
3. Overlooking the fact that people make purchasing decisions with both their hearts and their heads.
The third critical mistake in communicating product value is overlooking the fact that people make purchasing decisions with both their hearts and their heads. In the pursuit of logical and fact-based marketing, many businesses neglect the emotional aspect of buying decisions, thereby failing to create a holistic and compelling value proposition.
Human decision-making, especially in purchasing, is a complex interplay of emotion and logic. While the logical side evaluates the tangible aspects of a product, such as features, benefits, and price, the emotional side is influenced by how the product makes the customer feel, its alignment with their values, and the story it tells. Neglecting either aspect can result in a disjointed and less effective message.
For instance, a car might be marketed based on its fuel efficiency, safety features, and resale value — all logical, head-based considerations. However, if the marketing also taps into the emotional aspect — the sense of freedom it provides, the feeling of safety and security for a family, or its role as a status symbol — it resonates more deeply with customers. This dual appeal speaks to the complete range of factors influencing a customer’s decision.
Overlooking the emotional appeal is particularly risky in markets where products are similar in features and functionality. In such cases, the emotional connection can become the key differentiator. It’s about building a brand story that customers can relate to, creating a sense of belonging, or aligning the product with a lifestyle or set of values that the customer aspires to.
To effectively communicate product value, businesses must craft messages that appeal to both the rational and emotional sides of their customers. This means blending factual information about the product’s capabilities and benefits with stories, imagery, and messaging that strike an emotional chord. It’s about creating a narrative that not only informs but also inspires, connects, and resonates on a deeper level.
A holistic approach to communicating product value—one that addresses both the logical and emotional aspects of decision-making—is crucial. By doing so, businesses can engage their customers more fully, creating a deeper and more lasting impact that goes beyond the mere specifications of their product.
Additional considerations for your value proposition.
Overcomplicating the value proposition.
Another aspect for some businesses is overcomplicating the value proposition. In an effort to cover all bases, some businesses cram too many messages into their value proposition, making it complex and hard to grasp. The effectiveness of a value proposition lies in its clarity and simplicity. It should quickly and straightforwardly convey what the product does, why it’s beneficial, and how it’s different. Overloading it with technical jargon, buzzwords, or too many details can dilute the core message and make it less memorable.
A mismatch between the value proposition and the target audience’s understanding or perception.
There’s often a mismatch between the value proposition and the target audience’s understanding or perception. Sometimes, what the business perceives as valuable might not align with what the customer values. This disconnect can happen if the business does not deeply understand its target audience. Regular market research, customer feedback, and empathy towards customer experiences are crucial in aligning the value proposition with what truly matters to the customer.
Effectively communicating the value of a product requires starting with the customer’s needs, keeping the message simple and clear, and ensuring alignment between the perceived value and the customer’s actual values and experiences. Avoiding these common mistakes can significantly enhance the effectiveness of your value proposition.
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