It doesn’t matter whether you’re a business of one or the CEO of a multinational firm, if you can’t clearly express your company’s value to your target market, growth will be difficult. Value propositions do that for you. By explaining why someone would want to buy your goods or services instead of a competitor’s, you maintain a competitive advantage.
A good value proposition is critical to success, but there’s an art to crafting one that increases conversions and drives sales. This article explains what a value proposition is, what it consists of, and three steps you can take to create one that gets results.
What is a Unique Value Proposition?
A unique value proposition is a brief statement that tells buyers why they should choose your products or services. What solutions do you provide and what value do they deliver? How well you answer these questions can mean the difference between a purchase and a pass. For this reason, value propositions can be tricky to write, but taking the time to master them is worth it.
Note: Unique value propositions are not the same as slogans, mission statements, or taglines. Slogans are catchy marketing phrases that sell specific products or services while mission statements relay a company’s goals and values, and taglines represent ideas or concepts your business stands for.
Now let’s go into detail on how you can perfect your unique value proposition.
Step One: Create a Buyer Persona
The wants and needs of your target audience need to underscore your value proposition. By creating a buyer persona based on market and customer research, you understand who your ideal customer is, what their pain points are, and how they make purchasing decisions. Use this information to create a unique value proposition that speaks to them. Check out our recent article on how to create your buyer persona.
Step 2: Develop a Value Map for Your Products and Services
At this stage, you start by describing what your business has to offer. How do your products or services make people happy? If you’re a financial advisor, the answer may be that you help your clients maximize their savings and grow their investments.
Now think about their pain points and how your business helps them overcome these challenges. If they’re busy professionals, perhaps you have an automatic deduction service that transfers a set amount every month from their checking to a savings account so they don’t have to worry about doing the transfers themselves.
Step 3: Format the Unique Value Proposition
Your unique value proposition contains three main elements: a headline, a subheadline/paragraph, and a visual element. Together, they make the proposition stand out on your website, brochures, and other marketing campaigns.
- The headline indicates the benefit the customer will receive when they buy from you. Make it clear, concise, and creative.
- The subheadline/paragraph should explain what you offer, who you serve, and why.
- A visual element like an image, video, or infographic can strengthen your message by illustrating it.
Once you format the value proposition, test it. You can ask current customers for their opinion or post it on various platforms and see how it impacts sales. If the results aren’t as expected, be prepared to try a different proposition.
Conclusion
Once you have perfected your unique value proposition, communicate it clearly everywhere you market to customers: your website, marketing materials, etc. By focusing on clarity, using the formula described above, and testing for effectiveness, you’ll have an asset that gives you a competitive advantage no matter what your industry may be.
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