When it comes to building a meaningful strategy, “what” is all about value. What do you bring to your customers, and what value does the market bring back to you? Understanding this reciprocal value exchange is key to creating a strategy that sustains both your organization and the customers you serve.
The Tiny Strategy framework prompts us to examine “what” in two ways: outward, looking at the unique value you provide to your market, and inward, identifying the value that your audience brings back to your organization. By answering both parts of this question, you clarify your organization’s purpose, set priorities, and create a foundation for lasting growth.
What Value Do You Provide? (Outward Focus)
First, let’s look outward. What unique value does your organization provide to the people it serves? This goes beyond simply listing your products or services. It’s about understanding the deeper benefits and impact you create in people’s lives. Whether it’s solving a specific problem, fulfilling a need, or providing a memorable experience, your value should resonate with your audience’s core needs and aspirations.
Why Defining Your Value Matters
Having a clear sense of what you bring to the table allows you to make strategic choices that strengthen your market position. Here’s why defining your value outwardly is essential:
- It Sharpens Your Brand Identity: When you understand your value, you create a brand that customers recognize and trust. This clarity helps you stand out in a crowded market.
- It Focuses Product Development: With a clear value proposition, you can focus on creating products or services that truly resonate with your audience, rather than getting caught up in trends or unnecessary features.
- It Informs Marketing and Sales: A well-defined value proposition helps your marketing and sales teams communicate your unique benefits, making it easier to attract and retain customers who truly value what you offer.
How to Define Your Unique Value
To determine the value you provide, start by asking yourself these questions:
- What Problem Are We Solving?
Great products and services solve real problems. Think about what specific issue or need your audience has and how your offering addresses it. For example, if you’re a productivity app, you might be solving the problem of disorganization or wasted time. - What Makes Our Offering Unique?
Why should people choose you over others? Your value could be a unique feature, a level of convenience, a specific result, or even the quality of customer service. Understanding what differentiates you helps clarify the unique benefits you offer. - How Does Our Offering Improve Our Customers’ Lives?
Beyond functionality, consider the emotional and practical benefits. Does your product save them time, reduce their stress, give them confidence, or bring them joy? Recognizing these deeper values can be a powerful way to connect with your audience. - How Can We Evolve Our Value?
Value isn’t static. As markets and customer needs evolve, so should your offerings. Regularly revisit your value proposition and look for opportunities to deepen or expand the benefits you provide.
What Value Does Your Market Give You? (Inward Focus)
Now let’s look inward. What value does your target market bring back to your organization? This isn’t just about revenue—it’s about the holistic impact your customers have on your organization. Understanding the inward value helps you build a strategy that prioritizes long-term, mutually beneficial relationships over short-term gains.
Why Knowing the Value You Receive Matters
When you’re clear on the value your audience brings back to you, it enables you to make smarter decisions about customer acquisition, retention, and overall growth. Here’s why it’s crucial:
- It Helps Prioritize High-Impact Customers: Not all customers are equal in terms of value. Knowing who brings the greatest impact—whether through revenue, loyalty, or feedback—allows you to focus resources on retaining and growing these high-value relationships.
- It Supports Sustainable Growth: By understanding the non-monetary benefits customers bring, such as feedback, referrals, or brand advocacy, you can develop a strategy that grows sustainably over time.
- It Informs Product Development: Engaged, loyal customers often provide valuable insights and feedback that can improve your offerings. Knowing the value they bring can help you shape your products and services more effectively.
How to Define the Value Your Audience Brings Back
Here are some ways to understand and measure the value your market gives you:
- Revenue and Profitability
This is the most direct measure, but it’s important to go beyond top-line numbers. Consider customer lifetime value (LTV), which measures the total revenue a customer is expected to bring over their lifetime. By focusing on maximizing LTV, you can prioritize long-term relationships over one-time transactions. - Customer Loyalty and Retention
Repeat customers often provide significant value through sustained revenue and brand loyalty. Analyze retention rates and look at patterns among your most loyal customers. What makes them stay? How can you create more value for this group to keep them engaged? - Feedback and Product Insights
Engaged customers provide feedback that can be invaluable for improving your products. Consider setting up regular channels for gathering customer insights, whether through surveys, feedback forms, or community engagement. These insights can be a goldmine for refining your offerings. - Brand Advocacy and Referrals
Customers who believe in your brand often share it with others, providing word-of-mouth referrals that can be more powerful than traditional advertising. Track metrics like Net Promoter Score (NPS) or referral rates to gauge how willing your customers are to recommend you to others. - Market Insights and Trends
Sometimes, the value your audience provides comes from the broader insights they offer about market trends. By understanding what’s popular or in demand among your customers, you gain a sense of the evolving market landscape, allowing you to anticipate changes and stay relevant.
Bringing the Outward and Inward “What” Together
When you understand both the value you provide and the value you receive, you create a balanced strategy that benefits both your organization and your customers. Here’s how to integrate these insights for maximum impact:
- Optimize Your Offering: Use customer insights and feedback to continually refine what you provide. If customers are vocal about a particular feature or pain point, listen and adjust. This enhances the value you provide and shows customers that you’re responsive to their needs.
- Prioritize High-Value Relationships: By identifying high-impact customers, you can target your resources and attention on nurturing relationships that bring the most value back to the organization. This might mean developing loyalty programs, offering exclusive features, or providing tailored support to keep these relationships strong.
- Reinforce Your Brand Identity: Knowing what you stand for and the value you offer allows you to build a consistent brand identity. This consistency not only strengthens your current relationships but also attracts new customers who resonate with your brand values.
Final Thoughts: Why the “What” Question Matters
The “what” question is foundational because it clarifies the core of your business—what you give and what you get in return. When you’re deeply aware of the value you provide, you can focus on delivering it consistently, creating a brand that people trust and return to. And when you understand the value your audience brings back to you, you’re able to make smarter decisions that prioritize long-term growth and mutual benefit.
Answering the “what” question thoughtfully and thoroughly is key to building a strategy that works both for your organization and your customers. This mutual value exchange is what sustains successful, purpose-driven companies over the long haul.
By asking and re-evaluating “what” regularly, you’ll keep your organization aligned with its mission, responsive to its customers, and focused on building value that stands the test of time.