What value do you offer your clients? This is a very important question that a lot of companies struggle to answer. It's also a question that you have to answer quickly, effectively, and clearly. Otherwise, your prospective client will lose interest and move on to the next brand.
So how will you answer this question? You have to develop a solid value proposition in order to address this key concern.
Value Proposition and Its Importance
Value proposition is a complicated principle that can be defined in numerous ways, but it basically boils down to three things:
- What your company offers
- What users will get from your brand
- Why your company is the best choice
If you're looking for a more precise definition, then value proposition is the promise of benefits that your company will provide to the customer.
Having a clear value proposition is crucial because it helps you to convey how your product or service solves a problem or how it can be an asset to your target market. After all, how can you convince consumers to pick your brand if you can't tell them exactly why they should?
How to Refine Your Company's Value Proposition
While a value proposition sounds pretty straightforward, creating one can take some figuring out. This is because it has to be concise, unique, and compelling to be effective. It also has to be focused on what the user needs; not on what you can offer. Here are some ways you can develop or refine your company's value proposition:
Know Your Buyer Personas
You can't create or refine your value proposition if you don't know who your buyers are. Begin by placing yourself in their shoes. Next, answer key questions like:
- What do your buyers require?
- What problems do they want to resolve?
- What improvements are they looking for?
- What do your customers value?
Never guess who your buyer is or what they want. Do market research to get the answers to your questions. Interview your customers, conduct surveys, or organize a focus group.
Know Your Product
Make sure you know your product well. Look at your product from your customer's viewpoint. You should be able to answer important questions like how the product solves a problem or what hard results does it provide the customer. If you can integrate some verified facts in your answer, so much the better.
Take the case of Unbounce. The software company uses its landing page to boldly call itself "The Conversion Platform for Marketers." In five words, it says exactly what it does and calls out its target market directly.
It then goes on to clarify its value proposition by positioning itself as " the easiest way to build and test custom landing pages, website popups and sticky bars."
Get to Know Your Rivals
No matter how unique you believe your product or service is, there will always be another company offering the same thing. That means you'll need to distinguish what sets your product apart from the others and how it provides more value than your competitor.
Put All The Information Together
Once you have all the information you need, distill all that data and answer the question - “Why should I purchase this particular product?” Try to give your answer in two to three sentences. It will also help if you start your answer with phrases like “My product is better because” or “I want to purchase this product because.”
Uber is a prime example of a company that was able to successfully leverage its value proposition.
The ride-sharing company has a lot of competitors, but what it did better was to push the value of convenience. Uber subtly highlighted all the reasons why people hate taking a taxi before offering its proposition. Its website copy simply states that a car will come to you with just one tap. It also highlighted key points like the driver knowing where you want to go and the convenience of a cashless transaction.
A strong value proposition is essential for a company's success. It makes connecting with your target audience easier and also establishes the base where you can build your brand's sales and marketing strategies. You can easily enhance your value proposition by knowing your buyer personas and brand, using verifiable facts and knowing who your rivals are.