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How to Test Effectiveness of Value Proposition Using Market Intelligence Techniques

Customers, competitors, employees and market influencers will give you a credible picture of where you stand from the market point of view.

Value Proposition expresses a description of the benefits the customer will receive from using a company product. When the benefits are relevant and significant in the customer's eyes, he will be interested in the product, which will initiate significant communication between the supplier and the customer, which will lead to the transaction. At any point of contact with a customer (website, exhibition, advertising), your value proposition's quality will affect the marketing activity's effectiveness. Its impact on business success requires you to test whether the Value Proposition you have formulated is effective.

So how can you use Market Intelligence to test if your wording motivates customers to action and is effective?

According to research firm Meclabs, you need to examine four components from the customer's perspective:

  • APPEAL How attractive is the offer to customers?

  • EXCLUSIVITY To what extent is it unique?

  • CREDIBILITY How reliable and dependable is it?

  • CLARITY Is it coherent and simple?

Here are two Market Intelligence techniques to test the effectiveness of the Value Proposition:


A survey among company employees will ask them to rate each of the above characteristics of the value proposition from their point of view. Such a survey can be done immediately, and it will give you a preliminary picture of where you stand.


A competitive intelligence exercise among existing customers, potential customers, competitors, and market influencers will be asked to rate each of your Value Proposition characteristics. Such a survey will give you a credible picture of where you stand from the market point of view.

In most of the cases we have done, a huge gap was discovered between the internal and market tests. Employees of Appeal and Exclusivity almost always attributed significantly higher than the company's customers and market factors.


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