Every business needs one. It's a pivotal element for converting leads and securing customers. It defines and differentiates your company, and your Marketing can't be effective without it. Wondering what I'm talking about? What this elusive element might be?
Well, simply put, it's your business's value proposition.
When we talk about a value proposition, we refer specifically to that unique quality that defines you and differentiates you from your competitors. When people interact with you and your brand, it's your value proposition that helps them decide to stay and engage with you versus your competitors.
It motivates them by allowing them to weigh up the perceived benefit you're offering them, minus the potential cost they may incur in doing business with you. If you’ve got this equation waxed, they'll see that your perceived benefit far outweighs any perceived cost. This makes a massive difference to your ability to convert leads into customers.
It's not uncommon to find businesses dithering when it comes to their value propositions. Sometimes they try to adopt a more generalised approach that leaves them high and dry as they attempt to differentiate themselves. Other times they simply think that their slogan is everything their value proposition needs to be, and leave it at that.
Let's be clear. Your value proposition is not your slogan, nor is it any potential positioning statements you might use to position yourself within your designated market. It's made of specific elements that come together in a clear and concise way to convey maximum value and impact to your target audience.
Ideally, it should consist of the following:
If you haven't got a solid value proposition yet, there's a process you can follow to create one.
Sit down and make a comprehensive list of all the benefits your product or service offering has for all potential customers. It's important to explore all these benefits thoroughly so you can find the edge that'll help you differentiate yourself from your competitors.
Once you've identified those benefits, it's time to link them to your value offering, highlighting the value your product or service can bring to your potential customers.
Here's the important bit; now you need to differentiate and position yourself. You need to clearly define your target audience and customers here, what you're planning on offering them and how you can stand apart from your competitors.
Once you've created your value proposition, measure it up against the following best practices:
There are other factors you can use to help differentiate yourself and your value proposition once you've developed a basic one. You could highlight competitive research, target specific value propositions for specific buyer personas or develop separate value propositions for separate offerings you may have. You can even test out your value proposition across multiple media outlets to see which ones offer the best responsive.
The key is just to take time to start thinking about your value proposition (if you have one), or about creating one if you don't. Ask yourself if your current one is working for you, or reaches your target audience and personas.
Don't assume that the value you have to offer potential customers is obvious – it may not be, or may be difficult to determine. Avoid missing the chance to reach out and improve your business, lead conversions and customer base with this simple, yet crucial, step. Create a value proposition that does justice to the passion you have for your business and your clients.