The key to success for any business is being able to communicate the value of its offering to consumers-the best way to do this clearly and effectively is through the value proposition. Here is what it is and why it is critical to have one.
Regardless of what you do and what industry you are in, two things are definitely true for you as well: one, your success depends on your customers; two, you have competitors.
Do you agree?
Good, so it means that the way you promote yourself and make yourself known is a key part of your growth (and earnings).
To make your way in your market, the goal is always to identify and meet the needs of your audience to maximize conversions. The problem, however, is that you often work so hard to improve your offering that you forget to Effectively communicate its value.
Let me explain: it's not enough to create a great product if your potential customers don't know exactly why they should have it. And who, better than you who created it, can tell them?
You need a bridge between what you do and your target audience that defines a whole range of things: why people should turn to you, what motivates them to choose your products from the hundreds of alternatives, what makes your company and your offerings better than others.
The answers to these questions are concentrated in a single element: the value proposition.
Have you ever heard of them?
It is one of the most important aspects of business communication, as well as potentially one of the most critical elements of your marketing strategy: it plays a crucial role in making your product attractive in the eyes of your audience, increasing conversion rates and improving your promotional efforts across channels.
I mean, as you may have guessed, it's something that is critical to your success....
It's just that if I asked you now, "Do you have one?" or "What's yours?" you would find yourself perhaps a little taken aback, starting with the fact that you wouldn't really know what it is.
Or maybe you think you have already formulated it, but you are not quite sure you have hit the mark.
Don't worry, that's what I'm here for: in today's article I explain. what the value proposition is, what it looks like, and why it's really important for your business.
What is the value proposition?
You know it too: the competition is extremely high out there, and every day you have to juggle a myriad of opponents targeting the same audience as you, with more or less viable alternatives to your offering.
And you are also aware that the only thing you can do, besides coming up with something unique and extraordinary in itself, is to find your place in the minds of consumers, so that it is clear to them what sets you apart and makes you different from everyone else (I told you about this well in my article on the brand positioning).
Above all, you need to offer people the thing they seek most: the value. You have to give them what satisfies their needs, wants, requirements (and consequently entice them to put their hands in their wallets).
But it is still not enough: the key step is then to be able to communicate that value, making it clear and obvious to their eyes and ears.
Here, the value proposition serves you precisely to achieve this purpose.
But what exactly is it?
Let's see it now.
The literal translation is "value proposition": a simple sentence which communicates, in a nutshell, why a customer would want to choose your product or service over your competitors.
In general, we can say that it answers the question:
"What do you do and how do you do it?"
Thus, it is a statement in which you set out the advantages or benefits you offer your audience and which allows you to stand out within your market-a kind of summary that highlights product uses, features, and differentiating factors, taking into account the problems, desires, and needs of your target audience.
It basically describes what the customer will get by purchasing your offer, based on three things:
- Relevance: How your product solves problems or improves her situation;
- Quantified value: what specific benefits it offers;
- Differentiation: explain to the ideal customer why they should buy from you and not from your competitors.
But beyond that, the most important aspect (as the word itself says) is that the value proposition contains a promise of value, which distinguishes your brand and strengthens its awareness.
For many it is the first message they come across when they discover your brand, showing them what your business stands for, how you operate and why you deserve their attention, becoming the guiding axis in your communication and marketing strategy.
It is therefore the best opportunity you have to position yourself in people's minds in a simple and effective way. As such, the value proposition should be seen as a way to win customers, retain them, gain a competitive advantage, and ultimately increase sales.
Elements of the value proposition
The value proposition normally consists of. three main elements: a title, a subtitle, and a visual element (such as a photo, video, or graphic). This type of structure allows consumers to "scan" it quickly and grasp the benefits of the product, facilitating communication.
The title of your value proposition describes the benefit to your customer: it can be creative and catchy, but first and foremost it should be clear and concise. It should consist of a single sentence, a slogan that lays out the benefits and knows how to attract attention.
The subheading expands the explanation of the value provided, going more into the heart of why your offer is better than others the consumer might have in mind. It highlights product features, explaining what you offer, to whom, and why. It can be a short paragraph, two or three sentences in length, or a bullet point highlighting relevant details.
Pictures, you know, communicate much faster than words (I also reiterate this in my article On the importance of the graphics in web marketing): that's why a video, infographic or photograph can convey your value proposition even more effectively and be used to capture your audience's attention.
Here is an example from the home page of Kajabi:
Why is the value proposition important?
You may be wondering: why worry so much about the value proposition? After all, with all the advertising you do, people should already know what you offer....
Well, know that this is more than just an advertising slogan (it's actually something completely different). Creating your value proposition is like investing in the foundation of a house: you don't see it when the work is done, but everything else is based on it, primarily ensuring that it remains solid over time.
Here are the top 6 reasons why the value proposition is important for any business:
#1 Center your business
Over time, you may be tempted to change your vision: a well-crafted value proposition works as an investment in keeping you focused on the task at hand and not getting lost, reminding you exactly what your company should be doing.
#2 Captures attention
Consumers have very short attention spans-they are bombarded with so much marketing content that they are sometimes even confused. If you present yourself in an integral, clear and direct way, you will succeed in making room in their minds and gain their interest.
#3 Create. brand awareness
At the end of the day, people don't care so much how many social media posts you make each day or how many blog articles are on your site-their only concern is what your product does and whether it meets their needs and expectations. The value proposition helps them become aware of your brand and recognize real value in it.
#4 Set you apart from your competitors
It is obvious to you: your offer is different from your competitors'. But does your audience know this? Your value proposition allows you to outline what makes you unique in the marketplace: it tells the ideal customer why they should buy from you and provides your company with unique differentiation.
#5 Improves engagement and the loyalty
A powerful value proposition helps people understand how your services benefit them and are their best available option. Not only that, it also reminds existing customers why they have turned to you in the past and why they should continue to do so.
#6 It is the first impression
The value proposition is the first thing users see when they visit your website (if done well) and thus influences conversion rates and sales, as well as enticing them to browse your pages longer.
As you may have guessed, identifying a unique value proposition compared to your competitors is the main pillar that establishes your success, both in marketing and sales, and it is the core of your competitive advantage.
Remember this basic rule, however: the value proposition should focus on the "superpowers" that potential customers gain by turning to you, rather than on the product itself. That is, it should highlight how your offering solves people a significant problem, improving their lives and the way it makes them feel (as if it has superpowers, precisely).
If you already have one, check that it meets the characteristics I have listed. Check that it is relevant and offers distinct and measurable benefits to your customers. It must be specific and focused on people's needs.
If, on the other hand, you are starting from scratch and would like to know how to write it, don't miss the next article, where I will tell you about a fantastic tool you can use to create it.