Propsicle: When your Customer Value Proposition melts under heat

In business, a strong customer value proposition (CVP) is essential for success. It defines the unique benefits your product or service offers, distinguishing you from competitors. However, crafting a solid CVP is more than just stating what you do; it requires a deep understanding of your customers' needs, your competitive environment, and your own business strengths. Without this, your CVP risks becoming a "Propsicle"—a value proposition that looks solid at first glance but melts away when put under pressure.

Here are four critical reasons why a Propsicle CVP fails, and how to avoid them:

1. Ignoring the social and emotional needs of your customers

If your CVP only covers the “what” and not the “why,” it’s likely to melt under the heat of real-world expectations.

Many businesses fall into the trap of focusing solely on the functional aspects of their offering. While it’s important to highlight features and benefits, a purely functional CVP is like a popsicle that only satisfies thirst, not taste. Customers aren’t just buying products; they’re fulfilling emotional and social needs as well. You need to ensure you ask yourself, How does this service make my customers feel? How does it improve their social standing or identity?

Consider Canva. Canva hasn’t succeeded just because it makes design easy for everyone—it’s also about empowerment and creativity. Canva’s CVP taps into users’ desire to express themselves visually, whether they’re designing a social media post or a business presentation. The platform’s user-friendly interface makes design accessible to all, removing the intimidation that often accompanies traditional design software.

2. Failing to distinguish yourself in the competitive landscape

In crowded markets, a CVP that isn’t distinct from competitors can quickly lose its potency- are you just releasing more vanilla?

If your proposition looks like everyone else’s, customers won’t have a compelling reason to choose you over others. And then it becomes a race to the bottom on price- ick. This is where understanding your competitive landscape becomes crucial.

Take Airtasker. Airtasker stands out in the competitive service marketplace by offering a platform where people can find trusted workers for everyday tasks, from cleaning to tech support. What sets Airtasker apart is its flexibility, user-generated pricing, and the ability to review workers, creating a sense of trust and community. 

To avoid becoming a Propsicle, your CVP needs to clearly articulate why you’re different and better. It’s not enough to be good—you need to be memorable.

3. Misalignment with your current business strengths- and future vision

A CVP that doesn’t reflect what your business is great at today will disappoint upon tasting- and fall swiftly off the shopping list next time.

Many companies make the mistake of creating a value proposition that is aspirational but doesn’t align with their current capabilities. This creates a disconnect between what is promised and what is delivered, leading to dissatisfied customers.

But you can’t just stop there- a strong CVP not only reflects your current strengths but also aligns with your future vision. Businesses that fail to future-proof their CVP risk becoming obsolete as customer needs and market dynamics evolve- and also don’t get the full strategic value from their CVP as a ‘north star’ to help direct business trade-off decisions in favour of customer value.

‘Ownability’ is an essential consideration when it comes to CVP development, and requires the business to be honest with itself about where it excels today, and where it will back itself tomorrow. Don’t be ‘going out there writing cheques you can’t cash’ (one of Jenn’s favourite sayings!)

What’s the upshot?

Avoiding a Propsicle CVP requires a balanced approach that incorporates social, emotional, and functional customer needs, a clear understanding of the competitive landscape, alignment with your current strengths, and a forward-looking vision. By addressing these areas, your customer value proposition will stand strong under the heat of competition, market changes, and evolving customer expectations. A solid CVP isn’t just a statement—it’s a promise that your business can and will deliver, now and in the future.