The 4 Most Important Questions You Must Ask Yourself in Business

August 9, 2017

Business

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The first question you must ask yourself is what business model value proposition is, and the four questions below will answer that. Today’s consumer, whether B2B or B2C, isn’t only concerned about what your product or service does for him or her, he or she is also concerned about its intrinsic value. To determine your value proposition in a business model, as yourself the following questions.

1. What value does the product or service deliver to the customers?

Imagine you’re a cloud-networking provider. You not only provide storage solutions for your customers, you also provide ease of access and better security among other things. You offer your clients data storage they can log in to from all over the world. You offer them enhanced security. You offer them the knowledge that should something happen to their offices, their data will remain intact.

2. How does the product or service solve customer problems?

Your service saves your customers money, as they do not have to invest in the hardware and software required to store their own data. They also do not have to invest in IT personnel. You offer licensing solutions through business partners as well that allow your customers to save money of software purchases. These are some examples of what you might say in your business model value proposition.

3. How do products and services meet each customer segment’s needs?

Here, you must break down your products and/or services and isolate how each on benefits your customer base. For example, a small mom-and-pop shop might not need cloud storage, but they would save money if they licensed their software through you and ran it off your servers. Your corporate clients would benefit from cloud storage. Break it down as small as possible.

4. Why do you need to break it down that much?

You need to personalize the value you provide your clients because this how you are going to maintain your customer base. Your customers need to see exactly what benefits, aside from financial, they receive from doing business with you. How do you solve their problems? For the mom-and-pop, you offer software designed to increase their operating efficiency and thereby their profits.

This is a basic rundown of what business model value proposition is. Contact a professional company that makes value proposition modeling their business. They will sit down with you and analyze your product or service and how, exactly, it provides value to your customers, which you can then pass on to your current and future clients.