digitalmarketingassignment3s4201643

Converting understanding to actual value : Building digital value propositions that actually matter.

In week 2, we learned that digital marketing starts with strong customer value proposition(CVP). A CVP is not only about what a business can offer, but how well it can solve a customer’s problems while creating meaningful gains(Payne, Frow & Eggert, 2017). The framework starts with segmentation and targeting of the consumer, then uses the value proposition canvas to match customer jobs, pains, and gains with our solutions. This positions the offerings we provide in a way that is different and valuable to the customer.

Another concept that stuck out to me was the four types of customer values by Smith and Colgate. While customers may purchase the same products and services, the value they receive may differ.

A brand that exemplifies this is Grab. As someone who uses grab frequently, I realized how much it understands the needs of its consumers. My job is easy – get to my desired destination in a convenient, safe manner. My pains are surge pricing and long wait times. My gains would entail reliable rides, cashless payments, and rewards from using the service.

Grab also is a good example of making use of customer values, as it provides functional value through reliable transport and real-time tracking, experiential value in its seamless, user-friendly interface, symbolic value by positioning itself as more than a transport app, but a trusted everyday lifestyle platform. Finally, Grab also provides cost value by allowing cashless payment, loyalty rewards, and promotions that saves users both time and money.

This demonstrates how the value proposition canvas aids brands ion focusing on solving the correct problem before communicating their message. In my eyes, the biggest takeaway is that marketing is not about pushing features of a product down a customer’s throat, but tying the benefits and value to a customer’s needs that already existed in the first place.

References

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2015). Value Proposition Design. John Wiley & Sons.

Payne, A., Frow, P., & Eggert, A. (2017). The Customer Value Proposition: Evolution, Development, and Application in Marketing. Journal of the Academy of Marketing Science