The Best Way for Suppliers to Show Value Proposition: Example of BASF

The Best Way for Suppliers to Show Value Proposition: Example of BASF

B2B Mobile App for BASF: A Brand New Way of Creating a Value Proposition

At the heart of any business model, there is a value proposition that describes the advantages that your product or service brings to the buyer. A value proposition is a clear and simple statement of the benefits that consumers will receive when purchasing a product or service. The presence of such an offer determines the value of your company in the market and gives it a competitive advantage making you diversify your brand.

As our recent case perfectly illustrates, mobile app development gives companies a brand new way to communicate their value proposition to clients. Read on to find out how this magic happens. 

Creating a Value Proposition in B2B and B2C Markets

A value proposition is an articulated benefit to your customers. It explains what your customers will get from their interactions with you. A value proposition helps you stand out from the crowd in the conditions of severe competition and hook your target customers at first sight.

In order to create a value proposition for a company operating in a B2B sector, you first need to realize that business-to business (B2B) and business-to-customer (B2C) marketing differ in three key factors:

  • customers
  • customer value
  • value chain.

The target audience in B2B is much narrower and smaller than in B2C. As a rule, these are legal entities limited by the industry or the market. Thus, a B2B value proposition must be able to stretch and become an attraction for multiple stakeholders taking part in a purchase decision: advisers,  decision-makers, and approvers.  

As for customer value, while B2C focuses on the shipment of emotional gain through product/service functionality, B2B buyers usually pay more attention to the financial value of the proposal.

B2C model allows firms to enter the market in a 1-2 step value chain. For B2B companies this process is complicated and durable. It involves creating multi-stage value schemes that would be appealing to all parties of the value chain and increase brand loyalty

B2B Value Proposition 

b2b mobile app

B2B value propositions are aimed at solving specific business problems. When developing them, you can’t copy the patterns inherent in B2C, because, here, both the target audience and its motivation are different. 

When preparing a proposal, study your competitors and determine what you are more qualified at.  Then, use this data to attract users and increase sales and loyalty or partners. If you find a good way to showcase your expertise and reliability, potential partners will be interested in your offer and choose long-term cooperation even if the cost you offer is not the lowest on the market.

Representing value and selling goods to businesses is more difficult than to consumers: 

  • Before purchasing a product, the customer carefully evaluates both the product and the manufacturer and supplier, tests, and compares other options on the market. 
  • The value of the company’s and product’s reputation comes to the fore in this case. A long transaction cycle is the most solid confirmation of this. 

Mind that in B2B sales, the value of the offer relies on a lot of factors in addition to the product or service itself. These are: 

  1. delivery, 
  2. packaging, 
  3. payment terms, 
  4. availability of returns, 
  5. staff training, etc. 

That is, the value proposition is based on a complex consideration that works towards a final decision. Do not keep the partner guessing and asking for details – clearly communicate all important factors when presenting the value proposition of your offer.

The Case of BASF

value proposition b2b

For over 40 years BASF has been a leader in the production of footwear for the industry. Its value proposition was in the high quality and diversity of material supplied to manufacturers. To showcase this, BASF had to ship material kits which are bulky and expensive to produce and to transport. Thus, the company came to SwagSoft inquiring whether a mobile app is capable of presenting BASF’s value proposition to the customers.

Having the experience of Digital Quiz, a game designed to teach fabric identification at the leading fashion design school in Singapore, behind our shoulders, SwagSoft eagerly took up the project. 

SwagSoft took care of graphics, development, and content to bring to life a Footwear Material App – an application to educate footwear designers and product owners on how materials provided by BASF can create the perfect footwear for different purposes. 

Through the application, BASF has been able to easily disseminate its value proposition. The success of the BASF Footwear Material App was so great, that the company decided to re-engage Swag Soft in 2019 to create an AR app that would showcase how BASF materials can be used for pet toys, furniture, footwear, and other products.

Final Thoughts 

BASF shoe app is a pocket-sized tool that enables the industry to learn about a variety of shoe materials and, thus,make an informed decision. Users are able to uncover the various uses, characteristics, and advantages of different materials. This way, the value proposition of BASF is displayed in a convenient form and is readily accessible to leads and clients. What is more, the installed app constantly reminds clients of a brand and its offers. 

Isn’t it a great way to approach creation of the value proposition in the B2B market in 2020?

We bet it is.