Here’s Why You Should Spend Time on Developing a Value Proposition
What is a Value Proposition?
A value proposition is a statement that answer’s the “why” someone should do business with you. It should convince a potential customer why your service or product will be better for them compared to your competitors. You know why your company is great, but do your customers know what sets your brand apart from the others?
Having a good value proposition will give you an advantage over your competitors and is often what your potential customers use to evaluate you. Crafting an effective value proposition may sound easy but the process can be quite challenging. Your value proposition must be distinct, concise and interesting to attract potential customers.
Benefits of Creating a Value Proposition
When creating a clear and compelling value proposition, your brand will start to see many benefits come to fruition.
- Potential customers can quickly understand what your company has to offer.
- Creates a strong differential between you and your competitors.
- Attracts the right prospects and increases not only the quantity but the quality of prospective leads.
- Improves customer understanding and engagement.
- Provides clarity of messaging.
Top Characteristics of an Excellent Value Proposition
- It is concise and easy to read.
- Defines exactly what you do.
- Makes it easy for someone to find you in an online search.
- Explains how your product fixes an issue that your target market has.
- Is displayed on your website and your customer touchpoints, gaining maximum reach.
- Answers the question of why your customer should purchase from you.
Why is a Value Proposition Important?
You don’t necessarily have to share your value proposition with all your customers, but it should be the basis of every product or service you create. It should be embedded into all your marketing strategies.
Value Proposition as A Guide
Your value proposition also serves as a guide for your business decisions. After you have defined your value proposition, you have a clear understanding of the type of services you should be focusing on, what your clients want and what is important to them and to your company.
Companies that do not share or know their value proposition run the risk of losing out on potential business. It is imperative that consumers know why you exist and why they should purchase from you instead of your competitor.
How to Create a Well-Working Value Proposition
There are three parts that comprise your value proposition
- Your Target Audience: Define who will benefit from your product or service, including their needs and values.
- The Problem You Solve: What is the solution that you are offering? How will this change the lives of your target audience?
- What Sets You Apart from The Crowd: Why should someone choose you over a competitor?
Your value proposition is usually a block of text with a visual included. There are many different formulas to follow when starting to create your value proposition but one of the recommended formulas is as follows:
Make this an attention grabber. You have one shot to attract your customer and make them want to read on. This is where you state the end benefit of what you are offering. This is usually one short sentence.
This will include a specific explanation of what you do or offer, for who and why it is useful to your target audience. This is usually 2-3 sentences.
3. Bullet Points
List your key benefits or features.
Images communicate much faster than words and grab the attention of your target audience much quicker than a paragraph. Show off your product or service. This is your hero shot.
So, how do you make your value proposition unique?
Something that attracts your target market and deters them from wanting to go to a competitor?
This requires some deep reflection with your team. It can be hard to spot what makes you unique right off the bat, so having a team to help come up with a unique proposition is key.
You don’t need to be unique to everyone; you just need to be unique to your target audience, hit them at their pain points and evoke emotion.
Does your business have a value proposition?
If not, will you be developing one? It’s important to not only know what you offer and what makes you unique, but it is imperative that your customers and potential customers/leads know it as well.
If you have a value proposition in place, are you having trouble using it in your marketing efforts? The execution of this can be a bit tricky, but it is extremely valuable that you work with your value proposition at every stage of marketing. This gives you a clear and concise message across the board and always ties you back into why you do what you do.
If this is something you are struggling with, reach out to us, and we can help develop a great marketing strategy that hits all the main points of your value proposition. Contact us at WEB ROI to learn more about this opportunity.