Value proposition

Why should customers choose your destination or company? How is your offering the best solution to their problems or hopes? How would they know it?

The value proposition describes how your destination or company stands out from the competitors, and what it offers to your customers. This promise aims to benefit the customer by solving a problem or improving the current situation. Customers choose the company that brings them the most value.

Start forming the value proposition with the help of these questions:

1. What distinguishes your company’s services or products from competitors? The value proposition can be related to authenticity, locality, sustainability or even storytelling.
2. What problem does your company’s service or product solve?
   Each customer group must have its own combination of company services and products.
3. What benefits does your company offer to customers?
   Benefits can be innovative or even promises of sustainability. 
4. How does your story support the value proposition?
   When you create a story around your company’s value proposition, customers focus on it. A story makes it possible to stand out from the competition. An emotional story enhances customer loyalty.
5. What is your value proposition to different customer groups?
   Different customer groups have different needs and expectations e.g. couples travelling without children or families with children. Therefore, you should tailor value propositions appropriately for different customer groups.
   (Source: Lappi Luxus Business Model Workbook)

The value proposition is part of a Business Model Canvas (BMC), which is a visual template that includes nine (9) boxes describing the core elements of the destination’s or company’s business concept. 

Watch the video to learn about the BMC contents.

Now read how the value proposition was cocreated for the Sompio destination.

[pdf-embedder url=”https://blogi.eoppimispalvelut.fi/phenomenaofarcticnature/files/2020/11/Lempiainen-ValueProposition_MAKKE-article_in-English-PP.pdf” title=”Lempiäinen-ValueProposition_MAKKE-article_in-English-PP”]

Task: Start filling in the Business Model Canvas for your destination / company. You may use this template(pdf), or alternatively, this Business Model Workbook (pdf) created in the Lapland Luxus – Nature-based Wellbeing
Services and Products for Tourism Industry project.

Start with the Value Proposition.

Continue filling in the slots during the following lessons.

Sources and further reading:

The Business Channel 2016. The Business Model Canvas – 9 Steps to Creating a Successful Business Model – Startup Tips. https://youtu.be/IP0cUBWTgpY.

Lempiäinen, M. 2020. Arvolupaus matkailukohteen kehittämisessä. In Kaihua, H., Koikkalainen, M., Kähkönen, O., Lempiäinen, M., Liimatta, M., Tapaninen, M. & N. Vuontisvaara (eds.) Kohdekokemus – yhteinen näkemys.  Accessed 3 June 2021  https://issuu.com/lapinamk/docs/b_3_2020_kaihua_koikkalainen_k_hk_nen_lempi_inen_l/26.

Panttila, P. 2021. Ruokamatkailun tarinallistaminen. Opas ydin- ja palvelutarinan kirjoittamiseen.  http://www.hungryforfinland.fi/files/2021/12/Opas_palvelutarinan_kasikirjoittamiseen_2020.pdf