KQ Article

The influence of the value proposition on customer and member loyalty. 

High shopping season has come and gone once again. Most of us automatically buzzed among our favorite retailers, without giving much thought as to why we favor certain merchants over others. 

What really informs these decisions? Is it the obvious factors, such as a store’s proximity to home or the pleasant experience it provides? Or is it something deeper?

Might we choose stores that offer value propositions that resonate with what we value ourselves?

Many go to Walmart, for instance, for its “low prices every day.” Others go to Target for “affordable design.” These value propositions are difficult to separate from the brands — and both exert profound influence on customer loyalty.

Now let’s turn to the banking industry. Why do customers and members choose their financial institution? Do you have a short, memorable value proposition that customers can easily recall
to explain why they bank with you? Like it or not, banks and credit unions provide a retail experience, with many of the same decision-making forces at work. Value propositions matter.

A well-constructed value proposition forces you to rigorously scrutinize the actual worth of your offering in a competitive marketplace. By making decisions through this lens, you will be prepared to allocate scarce resources toward those priorities that align with what your customers value most.

Creating a winning value proposition involves more than generating a list of benefits. It requires removing internal bias and seeing things purely from the consumer’s perspective. You must whittle all of the complexities about you into a simple, clear and compelling statement that people can connect with and recite with little thought. 

When developing your value proposition, set out to answer this question as directly and briefly as possible: How does your financial institution uniquely solve a problem, deliver an advantage or improve a situation for those you serve? You’ll know it when you get there — and you’ll have a powerful new
tool for attracting and retaining today’s discerning customers.

 Our Point of View
1. E xperiences should be rooted in your story.
2. E xperiences should explore and celebrate customer values.
3. E xperiences should be purposeful and inspire the heart.
4. E xperiences must be meaningfully measured.
5. E xperiences live or die by stewardship.

_{© 2012 Deluxe Enterprise Operations, Inc.}