Why should a customer buy your service or product? The answer lies in the value proposition, which is often a term used by marketers and businesses to show why their offering is necessary. Without a solid value proposition, you will likely struggle to sell your products and services. But with one, you can increase customer intrigue and set yourself up for success. With that in mind, we’re highlighting why your business needs a value proposition and what you should consider when creating one.
What is a value proposition?
A value proposition essentially covers what your company does, the key benefits of your product or service and how you are different from other businesses operating in your market. Nail those three questions, and you’re well on your way to creating an excellent value proposition.
It’s also important to remember that a value proposition isn’t a slogan or back-of-the-box advertising. With a value proposition, you’re covering the what, how and why to give potential customers clearer insight into your company’s USP.
The importance of a strong value proposition
You need to convince people to buy your products or services, ideally sooner rather than later. It’s vital to show the added value of a product or service and how it will enhance the lives of your customers. A value proposition is a customer-centric way of doing just that, acting to increase brand awareness and loyalty.
The best value propositions display company ethos and appeal to their target audience, showcasing how you’ll solve their specific needs. For that reason, it’s helpful if you understand your target audience before creating a value proposition.
What to consider before you create a value proposition
Along with knowing your target audience, there are several factors to consider before you create a value proposition. Doing so will help you define a better proposition that has a good chance of resonating with your audience.
- What do you offer? – explain your products and services in a way that strikes a chord with your target audience. Word it in a way that is clear and concise without any jargon
- How are you different from competitors? – your value proposition needs to include a unique selling point that clearly differentiates you from other competitors in your market space.
By taking these aspects into account, you’re covering the most important factors about your business and why people should use it. By addressing customer needs as closely as possible and what your competitors lack, you can craft a watertight value proposition.
Value propositions and their impact on conversions
A well-thought-out value proposition can make a massive difference to your business. When done right, you can increase sales conversation and boost revenue. While a poor proposition can turn customers off your products and services, making it even harder to sell.
As you increase business, you can refine other aspects of the company to keep up the momentum, including upping marketing spending and taking on new hires. But without an excellent value proposition, it will be hard to drive your business forward and reach targets.
Summary: the value in a value proposition
A value proposition is the essence of your business and combines clarity with marketing savvy. You’ll communicate the importance of your product or service, speak directly to your target audience and tell them what makes you a better choice than the competition. It takes time and effort to create a high-level value proposition, but when done right you’ll set yourself up for a better business designed to succeed.