What is customer value proposition?

In marketing, a customer value proposition (CVP) consists of the sum

total of benefits which a vendor promises a customer will receive in
return for the customer's associated payment (or other value-transfer).
In other words, it is nothing but the promises made by the marketer to
his consumers which if he keeps leads to customer satisfaction.

Value propositions can be grouped as follows-
All benefits - all benefits the customer receives from the market
offerings
Favorable points of difference - all the points of differences that a
market offering has in comparison to the other alternatives
Resonating focus - a few point of differences which when delivered
provide greatest value to its users


To create a market place for buyers and sellers,
ensuring safe transactions and provision of a
trusted system especially for markets (products)
which are inefficiently distributed.
To each, the buyer as well as seller, eBay provides a
different value proposition. Its fixed price format
allows buyers and sellers to close transactions at a
pre-determined price set by the seller, but also
allows sellers to signal that they would be willing to
close the transaction at a lower price through the
Offer feature.
Its auction-style format allows a seller to select a
minimum price for opening bids.
Its eBay Stores format enables sellers to exhibit all
of their listings in a single place on one of its eBay
Marketplaces platforms and to describe their
respective businesses through customized pages.
eBay Stores also provides sellers with tools to build,
manage, promote and track their businesses
Their large user base and high percentage of the
market allows them to create a marketing scheme
that emphasizes fluidity, ease of use and
trustworthy transactions.


Its Daily Deals vertical offers a variety of products in
multiple categories at discounted prices with free
shipping
In its Fashion vertical the Company offers its
Fashion Vault, Fashion Outlet and an application for
mobile devices enabled with social media and email
sharing functions.
User- friendly shopping experience
Fixed price shopping with checkout process : the
new eBay 3-step checkout enables online shoppers
to experience easier & faster shopping.
New shopping cart features : Buyers browsing
through the site can now shop for multiple items
from multiple sellers and add them to their
shopping cart.
eBay enables trade on a local, national and
international basis with customized sites in markets
around the world. Through an array of services, such
as its payment solution provider Paisa Pay, eBay is
enabling global e-commerce for an ever-growing
online community.



Vendor/website reliability and authenticity
Quality of product and information
Range of products and categories available
Free shipping and return policy
Customer reviews
Product visuals
User-friendliness and faster interface
Easy shopping procedure
Quick and secured payment mode
Price promotions
Entertainment purpose
Presence of a customer care service

From a customer point-of-view

Easy, user-friendly website
Mega deals featuring on the homepage
eBay deals featuring on the homepage
A page with saved searches, purchase history,
watch list and bids/offers
Payback feature
Partner offers
Refund and replacement policy
Discussion centers
Customer support
Customers themselves being buyers as well as
sellers justifies why they dont have their own
inventory
Mobile app available for easy access
Good, regular communication in the form of
bulletins, interactive message boards and
connectivity to the top level executives of eBay
directly

From a seller point-of-view

Vast reach with many active users-
approximately 5 million users from
3311 cities of India
Gives those marketers a chance
who want to sell out-of-season,
used or vintage goods
Guarantees easy and efficient
transaction via Paisa Pay
No stocking up in any warehousing
required making the buying-selling
very transparent.
Small merchants get a huge
platform


Consumers can be divided into various segments depending on
various factors. A few are described below

Buying patterns - Based on how frequently the consumer shops a
segmentation pattern can be defined.
Frequent buyers - these are people who shop regularly from eBay or
other e-commerce websites. For them, the value propositions
maybe quick delivery, trusted payment system or a promotional
campaign.
Moderate buyers - those who shop once in a while but may browse
regularly. For these types of buyers the value proposition maybe a
good, easy to use website, promotional schemes, etc.
Irregular buyers - these are the most unpredictable ones as what
drives purchase for them is very difficult to find. What excites them
to buy online is very difficult to understand as they have no one
pattern.


Product based segmentation - This can be formulated by understanding
the various products that a brand has to offer. For example -
Home and living - this category will be mostly visited by a 25 - 45
year old, married woman, based in the tier I or II cities, with a child
(children), techno savvy and someone who is comfortable with e-
commerce
Cameras and optics - this category maybe popular with 18 - 40 year
old, men, students or professionals, based in the tier I or II cities,
photography enthusiasts and techno savvy.

Geographic segmentation - This is based on the location of the buyer.
Because this is an e-commerce site, there is no segmentation as eBay
delivers goods to any location all over India at varying charges
depending on how far the dealer location is from the consumers
destination.

Psychographic or lifestyle segmentation - This segmentation is based on
consumers attitude, behavior and interests. The demographic factors like
age and occupation can also be used to describe this category -
The first category can be that of males/females in the age group of
16- 24, students, not earning/ part-time jobs, based in the tier I or II
cities, consuming internet to a great extent and are techno savvy.
The second category can be that of males/females in the age group of
22- 35, working professionals, based in the tier I or II cities, newly
employed/experienced, newly married/ married with children, find it
time saving to shop online due to busy schedules and are techno
savvy.
The third Category can be that of males/females belonging to age
group 18- 40, living away from their families, studying/employed, use
internet often for shopping and tracking discounts across the e-
commerce websites. They are the regular visitors and researchers of
all these websites to look for the best deals.

Shopping involvement - This type of segmentation is based on how
involved the consumer is in the shopping process and how quickly
does he want to acquire a product.
Early adopters - These are the visionaries who are the first ones to
adopt themselves to any new product or technology coming up.
From an e commerce context these are those people who believe in
browsing, comparing and buying any new product of their interest
or any new technology that comes up.
Early majority - These consumers first let some early adopters use
and experience the product and then when they realize its utility
and effectiveness will they go ahead and buy the product. They are
the pragmatists.
Late majority - These people are the majority of late entrants who
are called the conservatives. They are slow at adopting any new
technology or product and are unsure of purchase.
Laggards - These are the skeptics who find negatives in the new
products and technology and may or may not purchase a product. It
is the marketers job to convert these to at least early majority.

Currently eBay India has over 5 million registered users, spread across.
These users come from over 4,306 cities in India
Over 90% of all eBay India shoppers pay via Paisa Pay a secure online
payment gateway enabling credit card, debit cards, net banking, EMI, mobile
payments & cash cards.
Product Purchase Based Segmentation
On an average day on eBay India:
A mobile accessory sells every 22 seconds.
A perfume or cosmetic product sells every 1 minute.
A piece of home or kitchen product sells every 1 minute.
A mobile handset sells every 2 minutes.
A portable storage device sells every 2 minutes. And much more.
Sales Promotion offers targeted to these product categories would help
maximize revenue.
Package deals (free accessories on the purchase of mobile handsets)
Loyalty programs/Membership programs (to avail special concessions)

Buying Patterns
Frequent buyers - quick delivery, ease of
payment, availability, guarantee and warrantee,
variety to choose from, first to acquire, loyalty
programs and rewards, rebates, cross up / sell.
Moderate buyers - easy to use website, unique
products, promotional offers and discounts,
social sharing, purchase milestones
Irregular buyers - reviews from experts, ease to
navigate through the website, exciting products
and offers
Quick Wins (See the last years Holiday
CUSTOMERS, get them back this holiday)
Purchase Milestones (Birthdays, anniversaries)
Cross up / sell (Based on title, brands etc )
Procrastinators (Last minute buyers, rush sellers)
Social sharing (ones who tweet, post etc )
Level of Engagement ( fill up the survey, vote for
their favourite brand etc )


Lifestyle/ psychographic
Tier I or II cities, consuming internet to a great
extent and are techno savvy
Triggered review recommendations form
experts,
price & product comparisons,
product information,
social sharing,

Tier I or II cities, newly employed/experienced,
newly married/ married with children, find it time saving
to shop online due to busy schedules and are techno
savvy.
Quick delivery,
discounts and offers,
availability,

Living away from their families, studying/employed,
use internet often for shopping and tracking discounts
across the e commerce websites.
Heavy discounts,
variety,
price & product comparisons,