Why are value propositions so important for your business? (And how to establish an awesome value statement)
Useful Value Proposition Examples (and How to Create a Good One)
Customer loyalty cards, frequent flyer points, rewards points and dozens (if not hundreds) of other programmes are all designed to get you to come back.
Are they really effective? Obviously the big players think they are but what about small and medium businesses.
I’m not so sure but I do know that having a value proposition is essential, even critical if your SME is to flourish.
So what is a value proposition? Here are a 3 definitions.
A value proposition is a promise of value to be delivered. It’s the primary reason a prospect should buy from you. http://conversionxl.com/value-proposition-examples-how-to-create/
A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. Read more: Value Proposition Definition | Investopedia
So it’s pretty obvious. A value proposition is just that. It is a statement that tells the customer what value they are getting when they purchase your product or service.
In other words, a value proposition is a statement of what your business does that’s better than your competitors. http://www.entrepreneur.com/article/245966
When you attend networking events do many people remember you and what you offer? Can you articulate or paint a picture of your Value Proposition in 120 words or less? If you can get it down to 94 words even better.
Make sure you use the right language
OK we’re not talking about different languages in the way shown in the image.
The language we must use is one that your customer will respond to. Namely what’s in it for them.
They do not respond well if your value statement is all about you you will lose them.
A value proposition is about the customer and what is or will be of value to them.
So what elements make up a good VP?
6 key elements of a great value proposition
- The headline should ‘speak ‘ to the customer
- The sub-head should highlight a benefit and a call to action
- The key benefits should be clearly listed preferably in bullet points
- Include a relevant image
- What do you do that your competitor doen’t?
- How to use Video
A word of caution with video
Do not rely on a video to communicate your value proposition. You must have words that people can read so you capture their attention. The video will then hold their attention keeping them on site longer. If the video is relevant, short and concise then it will be a huge boost.
Your customer already had some chat going on in their mind. They are looking for a solution to a problem and you need to address this. The problem needs to be obvious to the consumer.
The only way to find out what is going on in your customers mind is to ask them. Ask an existing customer, people you network with or use social media.
Use the sub-head to show a key benefit and a clear explanation of what action you want them to take.
Here are a few more ideas.
How to create a winning value proposition?
The best value proposition is clear: what is it, for whom and how is it useful? If those questions are answered, you’re on the right path. Always strive for clarity first.
If your value proposition makes people go “hmph?”, you’re doing it wrong. If they have to read a lot of text to understand your offering, you’re doing it wrong. Yes, sufficient amount of information is crucial for conversions, but you need to draw them in with a clear, compelling value proposition first.
Research by MarketingExperiments says that the key challenge companies have is identifying an effective value proposition, followed by communicating it clearly.
What makes a good value proposition:
- Clarity! It’s easy to understand.
- It communicates the concrete results a customer will get from purchasing and using your products and/or services.
- It says how it’s different or better than the competitor’s offer.
- It avoids hype (like ‘never seen before amazing miracle product’), superlatives (‘best’) and business jargon (‘value-added interactions’).
- It can be read and understood in about 5 seconds.
Also, in most cases there is a difference between the value proposition for your company and your product. You must address both.
Here’s a value proposition worksheet you might find useful.
How to craft a unique value proposition
A key role for the value proposition is to set you apart from the competition. Most people check out 4-5 different options / service providers before they decide. You want your offering to stand out in this important research phase.
So how do you make your offer unique? Often it’s hard to spot anything unique about your offering. It requires deep self-reflection and discussion.
If you can’t find anything, you better create something. Of course the unique part needs to be something customers actually care about. No point being unique for the sake of being unique (“the ball bearings inside our bicycles are blue”).
All supermarkets are pretty much the same, right? Well, no. Here’s an example from Austin, TX of how a supermarket can be unique.
Here are two articles that can help you with finding a “theme” or an angle for your value proposition:
The key thing to remember is that you don’t need to be unique in the whole world, just in the customer’s mind. The closing of a sale takes place in a customer’s mind, not out in the marketplace among the competition.
Boosters for your value proposition
Sometimes it’s the little things that tip the decision in your favor. If all major things are pretty much the same between your and your competitors’ offer, you can win by offering small value-adds. I call them boosters.
These things work well against competitors who do not offer them. Boosters can be things like
- Free shipping
- Fast shipping / Next day shipping
- Free bonus with a purchase
- Free setup / installation
- No setup fee
- No long-term contract, cancel any time
- License for multiple computers (vs 1)
- (Better than) Money-back guarantee
- A discounted price (for a product)
You get the idea. Think what small things you could add that wouldn’t cost you much, but could be attractive to some buyers.
Make sure the booster is visible with the rest of the value proposition.
This video gives you some ideas to work with.
Here are links to some valuable value proposition examples and comparisons.
Marketing Experiments. Powerful Value Propositions
Harvard Business Review. Customer Value Propositions in Business Markets
This site has several classic examples of awesome value propositions.
To find out how we can help you attract traffic to your website and get you more conversions call us on 0414 288 050.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
Image courtesy of stockimages at FreeDigitalPhotos.net