You may be wondering why you need to create a Value Proposition.
The simple answer is it’s the best way to give you a competitive advantage. It tells your ideal customers why they should buy from you, and it’s such a critical part of your conversion factor that it can make the difference between losing a sale or closing it.
In this article, I tell you what a Value Proposition isn’t, what it is, what elements need to be included, and finally how to write an effective one.
Let’s get started.
Before I answer that question, let’s talk about what it isn’t:
🚫 A description of your product or services
🚫 A mission statement
🚫 A slogan
🚫 A tagline
🚫 A Unique Selling Proposition
So, what is it then?
Above all, the purpose of a Value Proposition is to address your customer’s pain points in a way that makes it easy for them to decide quickly whether using your products or services is the best way to solve their problems.
Therefore, your promise of value should:
◼️ Describe the value your customers will get from using your products or services.
◼️ Explain how your business differs from your competitors’ business.
◼️ Highlight the benefits of using your products or services, such as: (1) the results they’ll achieve; (2) the feelings they’ll experience; and (3) the improvements they’ll enjoy.
◼️ Address your customers’ problems and explain how or why your product or service is the answer.
When your customers see that your products or services solve their problems and deliver undeniable value and benefits, they won’t question the cost.
A Value Proposition has three key elements:
☑️ The headline
☑️ The sub-headline
☑️ Something visual
Your headline is the most crucial element because it’s the first thing your customers see. Therefore, it should tell them about the benefits of buying from you. It’s OK to be creative with the headline, but be sure to choose a clear message over something clever.
Your sub-headline should give your customers details about what your company offers, tell them who your products or services are for, and explain why they need them.
Visual elements capture people’s attention faster and better than words can. For this reason, you should use videos, infographics, and images that support your headline and sub-headline.
You can’t solve a problem if you don’t know what it is. So, talk to your customer service reps, marketing team, and salespeople to determine what problems your customers need to solve.
Specifically, you should ask:
◼️ What task do they need to complete?
◼️ What about doing that task causes them pain or negative emotions?
◼️ What are they worried about?
◼️ What keeps them up at night?
First, let’s talk about how features and benefits are two different things.
In short, features are fact-based accounts of what your product or service does. Benefits are what your customer experiences: results, feelings, and improvements.
With this in mind, start by listing all the features of your products or services. Then, describe at least one benefit for each of those features. The benefits should answer these questions:
◼️ Will they save time❓
◼️ Will they save money❓
◼️ Will they be able to manage their business more effectively❓
◼️ Will they be happier❓
◼️ Will they reach their financial goals❓
◼️ Will they attain their desired social status❓
Focus on the benefits that take away the biggest pain points.
Use videos, before and after photos, and demonstrations to show exactly what outcome your company will deliver.
Each benefit should solve a problem your customer is facing. Not only that, your customer knows how the product or service should perform. In other words, the benefits you describe need to match their expectations or they won’t be willing to make the purchase.
When you connect a benefit to a problem, you’re showing the value of your product or service.
Align each of your benefits with your customer’s problems.
If they don’t align, keep working at your benefits until they directly relate to (and solve) your customer’s problems.
You ultimately need to show your customers how your products or services are different (and better) than your competitors’ products or services.
So, how do you do that? Research. Take a look at your competitor’s Value Proposition.
Identify their strengths.
What do they do well? How are they solving your customer’s problems?
Now, find a way to be better. Can you offer a guaranty? Deliver faster? Better customer service? Free shipping?
Identify their weaknesses.
Look for the gaps. What do you do that your competitors don’t? Do you have more services? Do you do include things that your competitors charge for?
Providing as many details as you can about how your company is better at solving their problems helps them choose your company instead of your competitors.
Use your chosen marketing channels to test your Value Proposition.
To decide whether you’re delivering what your customers want to see, you need to measure their responses.
There are many tools you can use to capture customer feedback. Test different headlines and benefits, and keep tweaking your message until you reach your goal.
Use the steps outlined in this article to help you identify your customer’s problems, show them the benefits of your products or services, and connect the dots between your benefits and their problems.
Having an effective Value Proposition makes it easier for your ideal customer to choose your company.
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