What makes your business special?
Do you find that you and your competitors answer this question the same way? If so, your value proposition needs some attention.
Lucky for you, we’re going to give you a quick 5 minute crash course on how you can create a strong value proposition. So let’s go!
We like to think that our business is unique and special. Hopefully, it is. While it’s certainly nice to have a healthy sense of pride in your business, we often we perceive our business to be more special and unique than our customers perceive them to be. Just because you think your business is special doesn’t mean that prospective customers think the same way.
This can be a tough to hear because you put your blood, sweat, and tears into your business, But the hard truth is, without a strong value proposition, your business will find it hard to make the cash register ring.
Many businesses we’ve encountered define their value proposition this way: “I sell amazing product X” or “I help my customers solve problem Y.” While selling great products and services is great, thousands of businesses define their value proposition the same way. This makes it difficult to carve out a place in your customer’s where they see you as unique and valuable.
A strong value proposition can make or break a sale.
Be specific. Why are YOU better than your competition and why should your customers believe you?
People need to be motivated before they make the purchase decision. Purchase motivation can be defined with a simple equation:
Motivation = Perceived Benefits – Perceived Costs
Let’s say you run a mechanic shop. Most owners would define their value proposition by saying, “We provide the best service at a competitive price.” It’s like saying you sell the world’s best coffee… do we really expect our customers to believe that when everyone is claiming the same thing? And why should customers choose you?
The key word here is “perceived”. What do customers perceive your business unique strengths to be? These are areas of opportunities for you to improve and where you can build your value proposition. Take a deeper dive into what you find.
- Identity what problems your helping solve and how you’re solving them
- Identify what they stand to gain from your solution that is unique and meaningful to them
- Identify areas where your company can build trust and authority. Here is another valuable article on building trust through your advertising.
- Don’t try to stand for everything. Rather, be hyper focused and keep it simple.
Going back to the car mechanic example. This would be a stronger value proposition: “We educate car owners about the repair process and allow customers to watch what we’re doing by video, so they see the level of service we put into each vehicle.”
There are a few reasons why this is a stronger value proposition.
1. It addresses the a benefit that your customers really value (quality of service)
2. It gives reasons why they should believe that value statement (watch video)
3. It communicates trust in solving their problem (transparency)
4. It’s a simple a focused concept that you can use to position your business and marketing.
So how are you going to write your value proposition now that you know these things? Lucky for you it’s quite simple.
1. Start by Identifying all of the benefits your product provides your customers. List ALL of them and identify which ones are the most important to your customers and which ones solve the most “painful” problems they have.
2. Now take a look at what value this provides the customer.
At first glance this may seem like the same question as above, but the value should tackle the question of what the result of your service is beyond the physical product or service. Going back to the example above, you repair cars, but you go beyond just a simple repair by helping educate your customer on what you are doing to the car and why, so they (value alert!) have the confidence they are getting the best level of service possible.
3. Be clear on who your target customer is and what you offer them that makes you different.
In the example above, the target customer is someone that may not be experienced with car repair but wants to know what needs to be done and be sure it’s being done right.
After this is identified, think about how what you uniquely offer will help relieve a pain point (getting ripped off or overpaying for unnecessary services).
If you’d like some more value proposition examples, check out these: 31 Examples from iMpact
Once you’ve identified your value proposition is, the next step is to use it in your marketing efforts. Make sure it’s included on your website and social media. Focus on it until it’s core to how your customers see you.
The CXL Institute has studied the application of a value proposition in terms of how people interact and respond to it. Some of their findings showed that online prospects for your company:
- Notice the value proposition more quickly when it took up more room on the page.
- Spend more time reading the value proposition than other materials.
- Look at more services offered.
- Prefer information in bulleted lists.
Knowing this can help you optimize user experience on your website, for a landing page, or other marketing materials in a way that will give your business a distinct advantage. Most prospects visit your website and a couple competitor sites before making the buying decision. The clearer your value proposition, the more likely they’ll choose you.
Make sure you format your headline for a website and not just as a “wall of text.” Have a headline, grab their attention. Then dive into the details to convince them further. Leverage that perceived value!
Now that you’re an expert on your company’s new value proposition, don’t just wait around, implement it as soon as possible! Be the company that turns heads and catches the attention of your potential customers, don’t blend in with the rest!
If you have any questions or ideas about how this can benefit your next digital marketing campaign, contact us!