There are several tools available to describe and design a company’s value proposition. However, the "Value Proposition Canvas" method is one of the most well known. But what if there was a better alternative? That's where Mat Shore's "6 Element Method" comes in. In this article, we'll explore why this method is a more effective way to design your value proposition and how it works.
What is a Value Proposition?
A value proposition is "a clear story that explains how your product or service solves a customer’s problem in a unique or superior way." (Mat Shore) It's a statement that describes what sets your business apart from others and why a customer should choose your product or service. A well-defined value proposition is essential for any business looking to stand out in a crowded market and differentiate themselves from the competition.
The 6 Element Method
Mat Shore developed the 6 Element Method as a way to effectively design a value proposition. The method is based on six key elements that help you create a clear story about your product or service and why it's unique. Here are the six elements:
Target
The first element is "Target". This refers to the customers who will buy your product or service, and who will not. In other words, it's about identifying who your target audience is, who decides, uses and/or pays for it.
Insight
The second element is "Insight". This is about understanding the end-user's key insight, their biggest unmet need, what they're trying to achieve, and what is stopping them. This element is crucial in understanding the problem that your product or service is solving.
Alternatives
The third element is "Alternatives". This is about considering the alternatives that are already available in the market, and how customers currently solve their problem. It's about understanding what customers will be comparing your product or service to.
Benefit
The fourth element is "Benefit". This is about explaining the value that your product or service brings to the buyer. It's about how your product or service solves the customer's problem as described in the "Insight" element.
Reasons to Believe
The fifth element is "Reasons to Believe". This is about explaining why the buyer should trust that your product or service will provide the value that it promises. It's about building credibility and confidence in your product or service.
Superiority
The final element is "Superiority". This is about explaining why your product or service is superior to the alternatives, or why it's better than doing nothing. It's about differentiating yourself from your competition and showing why your product or service is the best option for the customer.
The Benefits of the 6 Element Method
The great thing about the 6 Element Method is that it decomposes the often vague concept of a value proposition into six clear elements, and puts them in order so that you can create a clear story about your product or service. It's a simple yet powerful way to articulate your value proposition and set your business apart from the competition.
Conclusion
The 6 Element Method is a great alternative to the "Value Proposition Canvas" for designing your company's value proposition. By breaking down the concept of a value proposition into six clear elements, it provides a clear framework for creating a compelling story about your product or service. So, if you're looking to differentiate yourself from the competition and articulate your value proposition effectively, give the 6 Element Method a shot and let us know what you end up with.
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