How to Create a Value Proposition in 5 Easy Steps
You may be wondering why you need to create a Value Proposition.
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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 itβs such a critical part of your conversion factor that it can make the difference between losing a sale or closing it.
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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.
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Letβs get started.
Want help creating your Value Proposition? Click here.
What is a Value Proposition?
Before I answer that question, letβs talk about what it isnβt:
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π«Β A description of your product or services
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π«Β A mission statement
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π«Β A slogan
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π«Β A tagline
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π«Β A Unique Selling Proposition
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So, what is it then?
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Above all, the purpose of a Value Proposition is to address your customerβs 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.
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Therefore, your promise of value should:
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βΌοΈΒ Describe the value your customers will get from using your products or services.
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βΌοΈΒ Explain how your business differs from your competitorsβ business.
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βΌοΈΒ Highlight the benefits of using your products or services, such as: (1) the results theyβll achieve; (2) the feelings theyβll experience; and (3) the improvements theyβll enjoy.
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βΌοΈΒ Address your customersβ problems and explain how or why your product or service is the answer.
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When your customers see that your products or services solve their problems and deliver undeniable value and benefits, they wonβt question the cost.
The Elements of a Value Proposition
A Value Proposition has three key elements:
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βοΈΒ The headline
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βοΈΒ The sub-headline
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βοΈ Something visual
Headline
Your headline is the most crucial element because itβs the first thing your customers see. Therefore, it should tell them about the benefits of buying from you. Itβs OK to be creative with the headline, but be sure to choose a clear message over something clever.
Sub-headline
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.
Something Visual
Visual elements capture peopleβs attention faster and better than words can. For this reason, you should use videos, infographics, and images that support your headline and sub-headline.
How to Write an Effective Value Proposition
Want help creating your Value Proposition? Click here.
Step 1: Identify your customer's immediate problem(s).
You canβt solve a problem if you donβt know what it is. So, talk to your customer service reps, marketing team, and salespeople to determine what problems your customers need to solve.
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Specifically, you should ask:
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βΌοΈΒ What task do they need to complete?
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βΌοΈΒ What about doing that task causes them pain or negative emotions?
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βΌοΈΒ What are they worried about?
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βΌοΈΒ What keeps them up at night?
Want help creating your Value Proposition? Click here.
Step 2: List the benefits of your products or services.
First, let’s talk about how features and benefits are two different things.Β
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In short, features are fact-based accounts of what your product or service does.Β Benefits are what your customer experiences: results, feelings, and improvements.
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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:
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βΌοΈΒ Will they save timeβ
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βΌοΈΒ Will they save moneyβ
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βΌοΈΒ Will they be able to manage their business more effectivelyβ
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βΌοΈΒ Will they be happierβ
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βΌοΈΒ Will they reach their financial goalsβ
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βΌοΈΒ Will they attain their desired social statusβ
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Focus on the benefits that take away the biggest pain points.
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Use videos, before and after photos, and demonstrations to show exactly what outcome your company will deliver.
Want help creating your Value Proposition? Click here.
Step 3: Connect each benefit to a problem.
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 wonβt be willing to make the purchase.
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When you connect a benefit to a problem, youβre showing the value of your product or service.
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Align each of your benefits with your customerβs problems.
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If they donβt align, keep working at your benefits until they directly relate to (and solve) your customerβs problems.
Want help creating your Value Proposition? Click here.
Step 4: Explain why your company is the best choice.
You ultimately need to show your customers how your products or services are different (and better) than your competitorsβ products or services.Β
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So, how do you do that? Research. Take a look at your competitorβs Value Proposition.
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Identify their strengths.
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What do they do well? How are they solving your customerβs problems?
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Now, find a way to be better. Can you offer a guaranty? Deliver faster? Better customer service? Free shipping?
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Identify their weaknesses.
Look for the gaps. What do you do that your competitors donβt? Do you have more services? Do you do include things that your competitors charge for?
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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.
Want help creating your Value Proposition? Click here.
Step 5: Test your Value Proposition.
Use your chosen marketing channels to test your Value Proposition.
To decide whether youβre delivering what your customers want to see, you need to measure their responses.
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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.
Ready to go?
Use the steps outlined in this article to help you identify your customerβs problems, show them the benefits of your products or services, and connect the dots between your benefits and their problems.
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Having an effective Value Proposition makes it easier for your ideal customer to choose your company.
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