Are you thinking of starting a business? If you do, you already know what products or services you want to provide, how to get your team together, and your target audience. But you need to answer one more question before registering your company, and that is why a prospective customer would buy your products or services. To answer this question and others, you need a solid value proposition.
A value proposition is a statement that clearly explains why people should buy your products and services. It underlines the benefits they will have should they purchase, the problems your products or services solve, and how your offer differs from the competition.
The value proposition is the first thing the prospective customer reads in your flyer, website, or commercial. It is concise, relevant, and specific. The value proposition is not a story and shouldn’t be difficult to read or understand. Ultimately, it is what convinces people to buy from you.
A solid, unique value proposition is a game-changer. To win new customers, your proposition needs to do three things:
By crafting an easy-to-understand and engaging value proposition, you can draw customers in and make them feel like they can't live without your product.
What the value proposition is not?
It's not a tagline, catchphrase or a slogan. This is not an offer of value. It encapsulates the essence of a brand or product.
Nike: Just Do It or Apple: Think Different
And it is not a position statement also. A positioning statement is a brief statement that describes a company's unique place in the market and its position against its competitors.
Starbucks: Strive not just to be a successful business, but also to be an ethical one.
It is not the mission, or vision either.
So, what key elements should a value proposition include to reach its goal? Like most texts written for business purposes, structure is the secret ingredient for success. You should consider a well-structured format even when writing a short text, such as a value proposition.
Therefore, the structure of a value proposition consists of:
The headline represents the main advantage or benefit your customer will receive when buying your products or services. It underlines the top value of your offer, the strength point, and one thing that makes your business unique and valuable. The headline should be catchy, short, on point, and exquisitely written.
The secondary headlines explain in detail all the benefits you provide. They are still concise but provide more information. If you feel one or two secondary headlines are insufficient, you can replace them with a short paragraph.
The list summarizes the benefits and makes them more memorable. It uses keywords and catchy phrases the reader can’t ignore or forget. If you do a video commercial, the viewer should remain with this benefits list after seeing it. Note: This is optional.
The visual element also emphasizes what the reader should remember. Many people are better at remembering visual information, including a picture of your products or services, a sketch of their best features, or an image that supports your message, increasing the chances of delivering a clear and memorable message.
Although a value proposition is a short text, it takes a lot of preparation. It’s your first impression to your customer and needs to be spot on. Therefore, take some time to gather all relevant information and structure it accordingly.
Step 1. List Top Features
Think of the top features of your products or services and list them in the order of their importance. Use one or two words for each characteristic and limit the list to the main features.
Step 2. List Customers’ Top Problems
What customer problem will your products or services solve? As you did with the main features, list the customers’ top problems in order of importance. Conduct thorough research based on surveys and focus groups. Involve marketing specialists, sales specialists, and customer service experts.
Step 3. Link Problems and Features
Now that you have a list of features and one of the problems, link the two, providing a benefit/feature for each problem. You connect your potential customers with your products or services at this step. Ensure they align and you provide valid solutions to their problems.
Step 4. Use Relevant Words
Consider your audience very carefully and write the value proposition using words that are relevant to them. For example, if your audience is young and fashionable, use jargon that reflects their values and lifestyles. In other words, use your audience's language to ensure you convey a message they understand and appreciate.
Step 5. Be Specific
Don’t lose yourself in metaphors and fancy words. Be as specific as possible. Remember that your goal is clarity and information. A value proposition is not a slogan. The text communicates concrete results, underlines what makes you better than the competition, and can be read and understood quickly.
Step 6. Avoid Exaggerations
We all want our business to be the best and provide the best products or services. But if all written in our value proposition are words like ‘best,’ ‘excellence,’ ‘amazing,’ ‘outstanding,’ and so on, the customer will doubt our intentions and honesty. So, present your products or services in the best light without exaggerating and overusing superlatives.
Once you have gathered all the information and established what you want to say and in what words, choose a value proposition template and customize it to fit your company. Here are four value proposition templates to get you started:
Write your value proposition by answering questions, such as “What am I offering to my customers?”, “What problem does the customer want me to solve?” “Who is my competition?” and “What set me apart from the competition?”
Write your value proposition by following the formula “We help (X) do (Y) by doing (Z).” In this method, you focus on benefits and solving your customer’s problems rather than advertising the features of your products or services.
Write your value proposition by following the formula: “For [target customer] who [needs or wants X], our [product/service] is [category of industry] that [benefits].” In this method, you focus not only on benefits but also on who your customer is and in what category of industry your business fits. It is a more precise method that targets a specific market.
Instead of writing your value proposition as a text, you can use a visual template to deliver the information. Graphic elements can easily represent relationships and dependencies and make your value proposition more memorable. Use an intuitive and minimalist style and, for marketing purposes, your brand's color scheme.
Value proposition templates can take you so far. You need examples to understand better what a successful value proposition is. So here is our top 10 list of value proposition examples. If you already know some of them, it’s just because they are such memorable and powerful messages.
Examples of Value proposition covered in detail
Let's start with number one remote communication platform out there.
What makes it a good value proposition: The benefits are clearly stated, as Zoom solves the customers’ problems.
What makes it a good value proposition: The advantages for the client are apparent and appealing. The visual element is informative and catchy.
What makes it a good value proposition: It includes relevant words for its target audience, underlines the main features, and includes a memorable visual element.
What makes it a good value proposition: The information is well-structured and answers all the right questions. The value proposition includes relevant concepts for the brand’s users.
What makes it a good value proposition: It underlines the target audience, the brand’s main benefit, and the main advantage over the competition.
What makes it a good value proposition: Reading just a few sentences, the client knows what the brand provides, its main features, and its target audience.
What makes it a good value proposition: It is engaging without being exaggerated, uses short sentences, and is easy to remember.
What makes it a good value proposition: The value proposition manages to put the brand before the competition while listing the features of its products and services. It also has a vital visual element.
What makes it a good value proposition: The headlines and subheadlines say everything about the brand. And the visual element only makes it more memorable.
What makes it a good value proposition: BeFunky knows its target audience and ensures the value proposition includes the right words. The features are there, as is a dynamic visual element that shows what the brand offers.
Conclusion
A successful value proposition captures the reader’s attention and makes them curious. It’s also relevant and memorable to ensure the reader will speak about it and spread the word. As it is the first thing a prospective customer reads about you, the value proposition should accurately represent your brand’s identity and values.
FAQs
What is the difference between a Value Proposition, a Mission Statement, and a Slogan?
| Value Proposition | Mission Statement | Slogan |
Purpose | It details what the business has to offer, how it solves the customer’s problems, and why it is better than the competition. | It details the company’s objectives and goals. | It is part of an advertising campaign and tries to sell a certain product or service. |
Information | Features of all products/services provided by the brand, benefits, and advantages over the competition. | General statements about the company’s goals, directions, and objectives. | The main feature of a product/service. |
Structure | Headline, a subheadline or paragraph, bullet list, visual element. | Headline, multiple subheadlines, and multiple paragraphs. | A single sentence. |
Length | 2 – 5 phrases | One page | 1 sentence |
When crafting a value proposition, keep the following in mind:
Remember, a strong value proposition should be compelling, concise, customer-focused, and clearly differentiate your offering from competitors.
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