The Key to Crafting Compelling Value Propositions

Value propositions explain why someone should choose your product over anything else. At their core, they show how you create value for customers.

In this article, we break down GIO’s framework for crafting value propositions that truly resonate with your target audience.

Introduction

A strong value proposition is essential for any product. It's the core reason customers choose your offering over other options.

But what makes for an effective value proposition? And how do you convey your product's value in a way that attracts the right customers?

We'll answer these questions and more using a simple framework called ERIM:

• Eliminate - Does your product eliminate problems or hassles for customers? Taking away frustrations is powerful.
• Reduce - Can you make things easier, cheaper, or less complicated? Lowering effort has appeal.
• Increase - Do you improve productivity, efficiency, or returns? More bang for the buck attracts buyers.
• Make Possible - What new things can customers do that they couldn’t before? Opening new doors excites people.

Understanding where your product creates value across these four areas is key to crafting a compelling proposition.

To illustrate, let's look at the evolution of making fire...

The ERIM Framework in Action

Making fire is a basic human need. Throughout history, different methods have reduced effort, increased results, and made the impossible possible when producing flames.

Eliminate

• Creating fire by rubbing sticks together is extremely laborious. Matches eliminate this hassle by enabling fire on demand. The Instant Pot also eliminates the hassle of using multiple appliances by combining pressure cooking, slow cooking, rice cooking, yogurt making, and more into one device.

Reduce

• Though matches are far easier than stick friction, they're disposable and fragile. Lighters reduce the effort even more with reusable, durable construction. The Uber app has also reduced the effort of getting a ride by centralizing transportation options in one place and removing the need to hail cabs.

Increase

• Standard lighters work well enough, but advanced ones like torches improve efficiency with bigger, hotter, more directed flames. More firepower, less effort. Tesla electric vehicles also increase driving range and performance by utilizing battery innovation and efficient motors.

Make Possible

• No one can start fires with their mind (yet!). But voice-activated firestarters now enable flame control simply by speaking. Doing the impossible. Airbnb also, everyday people could easily rent their living spaces to travelers, enabling new income streams and unique stay options.

This fire example shows how different methods map to the ERIM framework based on the evolution of user value over time.

Knowing where your product fits allows you to convey its core benefit succinctly.

Putting It All Together

So when developing your next game-changing product, map it across these four value areas:

• What hassles and headaches does it eliminate? (Instant Pot)
• How does it reduce customer effort and difficulty? (Uber)
• Where does it tangibly increase outcomes for users? (Tesla)
• What possibilities does it introduce that didn't exist before? (Airbnb)

Identifying where your product creates value is the first step to crafting messaging that truly resonates.

Because the customers who need those specific problems solved will come running. ERIM lights the way to awesome value propositions.

The next time you market a new offering, pick what eliminates hassle, reduces effort, increases results, or makes the impossible possible for your customers. That's the key to compelling propositions.

The GIO Team

About The Good Design | Center of Excellence Newsletter

For digital leaders aiming to drive growth through human-centric innovation, the Good Design Center of Excellence newsletter offers an inside look at GIO's approach. You'll gain strategic insights through digestible videos and articles to bridge the gap between vision and execution.

Seeking to unlock the future? Who better to provide the key than Generation Z themselves?

Good Ideas Only will conduct an immersive discovery sprint to reveal transformational insights into Gen Z behaviors and preferences. A limited number of exclusive sponsorships are available for enterprises seeking an inside track to engage this powerful consumer demographic. You can take advantage of this opportunity to gain proprietary intelligence tailored to your brand's innovation needs.

Good Ideas Only is a strategy and design studio that takes an outside-in approach to identify upcoming opportunities. Our "Good to Know" series provides leaders with strategic foresight on evolving consumer behavior and technology trends. We would appreciate your feedback on the first episode and suggestions for future topics. Feel free to respond if you have any problems you would like us to mull over. Our team of innovators and designers is here to help you bridge the gap between your vision and its execution.

Miami | Atlanta | New York | LA