At its most basic level, a value proposition is a promise of something of superior value – A company’s value proposition is what makes it different from other companies that offer the same services, it’s what you offer to potential customers. The value proposition is an expression of your company’s unique selling proposition. It’s an important part of marketing because it speaks to potential customers in a way that makes them want to choose your company over the others. But how do you go about creating a value proposition? We can walk you through it! A value proposition is a promise of value to fulfill a need or desire.
5 key questions experts answer when developing an appropriate value proposition for a business
What makes the business different? Expert value proposition creators differentiate a business from other companies by talking about what sets the business apart – its unique selling point. The key to a great value proposition is a clear and compelling message that explains why a customers should choose a business over other competitors. For example, if a business is a mecca for movie buffs, an expert proposition creator would make sure to clearly state that it is the best place in town for people who love movies.
What is the business’ hook? After expert proclaim a value proposition, it’s time to reel them in. The value proposition must be anchored by an emotional appeal that entices customers with the promise of an amazing experience and better results. If the business is described as providing “low prices and huge selection,” an expert only needs to back this up by showing these benefits rather than simply stating them. It’s important that this is showed not told.
Is there a ‘call to action’? Once a value proposition is anchored, it’s time to invite customers to take the next step. This is called the call to action – literally, a call to action. When experts create this stage of a value proposition, they use the customer’s name and any other pertinent information to get their attention. For example, he might say “Sign up now before our last seats are sold out” if the business is selling movie tickets, or “Enter your email to receive 10% off of your first order!” if it’s selling products.
Has the point been proven? An expert must prove that the business can provide on the value proposition that it promises. This is also called proof-of-value, because it proves that the business is really as great as it claims to be. If possible, try to grab customer testimonials or reviews – whatever proof is available to show potential customers that the company fulfills on its promises.
Are there Potent Potables? Before closing a value proposition with a final call to action, experts pepper it with a little branded flare. The brand is an important part of a business identity, so experts use the logo wherever you can it can reinforce the company’s image in the customer’s mind.
7 Myths about Value Propositions
- You can come up with a value proposition in a few hours or even days. Just like anything else in business, this will take careful planning, careful writing and more than a little time. Without taking the time to get every single word right, you’ll be sending out a statement that will do little but confuse people.
- The purpose of a value proposition is to pick up new customers. While it’s true that new customers are great for any business, especially if they’re loyal ones who will return to buy from you again and again, this isn’t always what a value proposition is all about. Once you’ve developed a new value proposition, you can use this to find your target market. If you want to find out more about the process of value proposition development for your company, then contact us today!
- A value proposition doesn’t need to be perfect. While imperfect value propositions can certainly still be effective, it’s important to make sure that you’re doing a good job presenting your company in a favorable light. If people can’t understand what you’re offering, then they won’t buy from you, and the world will move on without you!
- If your business is well known, then it doesn’t need a value proposition. Just because you’re well known doesn’t mean that all your customers are aware of what’s on offer at your business. With any new product or service that comes into the marketplace, it’s always worthwhile to think about what benefits this will have for your customers and how it can be presented in an easy-to-digest format.
- It doesn’t matter how you structure your value proposition as long as what you’re saying is clear and to the point. While it’s true that a clear, to-the-point value proposition is always a good way to draw in new customers from Google Searches or from social media platforms such as Facebook or Twitter, it’s important to think about what types of value propositions work best for your business. For example, if your company is launching a new product which could be used by a wide variety of people, then a chronological format might work best for you. If you want to ensure that you make the most of your value proposition, then make sure you test it on a variety of people to see how they react.
- Value propositions are only relevant for big companies offering big products or services. No matter how much money or how much time and energy you’ve put into creating a great value proposition, it’s still possible that nobody will notice. The secret is to make sure that you use what you learn from one value proposition to create the next one – and the one after that. While you’re at it, consider how your value proposition can be used as a marketing tool as well to attract new customers and keep those who already know about your products and services coming back for more.
- A value proposition isn’t necessary if your company is already well known. Even the most well-known brands need to keep their value propositions clear and simple. It’s even more important to be crystal clear about these things if your business is facing competition from companies who might be able to offer the same products/services at a lower cost or with more perks. If you aren’t sure of what you’re offering and how you’re comparing to the competition, then potential customers won’t know either!
While it goes without saying that a business needs to have a good product or service in order to provide a value proposition, every business needs to develop an appropriate value proposition that sets it apart from their competition and promises something worthwhile. Although marketing departments are often charged with defining the value proposition of their products and services, engaging a value proposition expert to carry out this important task could prove to be a masterstroke.
