There are consumers who buy their products from a specific retailer. There are hundreds of alternatives out there, but what actually motivates the consumer to choose that retailer and its services? What makes their business and their products/ services better than the rest? Well, the answer is their value proposition.
Consumer choices have never been greater. In fact, you can expect to see 30,000 new products launched each year. The likelihood of such fierce competition and failure is very high, so it’s important to provide value to the target audience. One of the most effective ways is to focus on a value proposition.
Read the full article to know the steps to write a compelling value proposition.
What is Value Proposition?
A value proposition is a value that a company promises to a customer when he decides to purchase its product. These are part of a company’s overall brand value strategy. A value proposition is a statement that introduces a company’s brand to consumers by telling them about the company, how it operates, and why it deserves business.
Developing value propositions is an important part of a company’s business proposition. Smart offers provide consulting firms with a way to influence customer decisions. This is often shared in networking conversations but can be smartly included in corporate websites and marketing materials.
Steps to create a compelling value proposition
1. Research and understand your customer
When creating an entirely new product or feature, there are many assumptions about why it is a good idea. One of them, and certainly the most importantly, is that the target customer has a problem and needs a solution.
However, this isn’t workable data to make actionable decisions. A product’ decisions should be based on data from quantitative and qualitative customer research.
2. Map the data to your brand
A compelling value proposition serves as a promise to the customer base. So, it should correspond with the customer data the company has been collecting. Determine how the product or service will reduce the customer’s problem and what the customer will get by purchasing the product or service.
And don’t stop there. Validate your results by gathering feedback from your customer base about what they like best about the product or service. How is it better compared to other companies? If the brand satisfies your target audience’s needs, then it has good value proposition qualities.
3. Conduct a competitive analysis
Consumers inevitably value your products and services. That’s what they call “perceived value,” and their perception is based on what is already available on the market. In other words, you will know the competition. What value do they offer to your target audience? Is it quality? Is it the price?
By investigating competitors, it is ensured that value propositions are a differentiator. They do not emphasize the same benefits as others on the market. The value proposition becomes clearer and more brand-specific. This makes a marketing strategy to target your audience.
4. Verify the real value
A good value proposition speaks for your services. So, do your research on the customer’s job and how it relates to your brand. Are your products and services helping people complete certain tasks? Will it give them a better? Will it change their perceptions of others?
If the product is essentially functioning, make sure the value proposition emphasizes that function. The same applies to products that have a social, emotional, or personal impact. If you skip this step, you risk compromising the true value of your product or service and your offer may not resonate with your customer base.
In 2017, the CXL Institute conducted an interesting study to test how different presentations of value propositions affect the viewer’s experience.
Bottom Line —
There are no quick rules on how to format a value proposition. You can include two statements. It can be a tagline, a headline, or some bullet points. Communicating concisely is important, but you always want it to be effective.
Ready to grow your business? Speak to our growth experts and learn how to expand your customer base, drive revenue growth, and optimize your business operations.
