Did you know that around 64% of businesses have established value propositions? While there’s a lot that goes into marketing your business, one thing that can give you a huge advantage over your competition is a value proposition.
Even though a majority of businesses have a value proposition, the fact is that most of these propositions lack effectiveness. Some studies have found that the number of companies that have useful value propositions is only around 2%.
You don’t want to be part of the majority! Here’s what you need to know about why you need a value proposition to reach success as well as how to write a proposition that is effective and worthwhile.
What a Value Proposition Is & Isn’t
In its simplest form, a value proposition is a statement that explains how your product benefits and adds value to a customer’s life. It explains what you do and why a customer should choose to work with your business as opposed to a competitor.
Aside from explaining what your product is and why it’s beneficial, a value proposition offers a compelling reason for why a consumer should become a customer.
While you may think that a value proposition is wordy, they should actually be short and sweet. In fact, most are just a block of text with a heading, subheading, and a bulleted list. Most companies post their value proposition on the website in plain view.
To make them stand out, a graphical element is often added. This way, the proposition pops on the page when a visitor lands on it.
Now that you know what a value proposition is, let’s discuss what they are not. A value proposition isn’t:
- A catchphrase or slogan
- An incentive
- A product advertisement
- A positioning statement
Instead, a value proposition is a promise to consumers that your product is beneficial, worthwhile, and valuable. It’s a promise that your product solves a problem or eases a pain-point that your target market suffers from.
Want to see for yourself? Here are some of the best value proposition examples that are in use today.
Why You Need One
There are many factors that determine whether or not a business will be successful. One factor is a business’s ability to establish itself as being different from its competitors. Having a unique value proposition that clearly explains why a customer should buy from your company instead of another is a step in the right direction. When a prospective buyer reads this information, they know everything that they need to know to decide whether or not to make a purchase.
There are many benefits to having a value proposition. Here are some of the most notable perks.
Improve Customer Engagement
Consumers shouldn’t have any question as to what your business offers. They should also know about the value that your product offers. With a powerful and unique value proposition, customers can easily understand why your product is worth purchasing.
Because a value proposition explains what consumers need to know about your business and product, they’re more likely to become engaged and interested in your brand.
Engagement is a core factor in any business’ success. The more engaged consumers are, the better. Engagement means that your brand is valued, trusted, and seen as an authoritative voice in your industry.
Customers Know What Your Company Has to Offer
Most customers already have a pretty good idea of what they’re looking for when they start searching for a product. But what often impacts the final buying decision is whether or not a product can meet a customer’s needs.
If a customer isn’t sure about your product or isn’t given enough information, they’ll likely look elsewhere to find what they need. This means competitors are likely getting business and sales while you aren’t.
With a value proposition, you can quickly give customers the information they need to explain what your company has to offer and how your product will benefit them. This increases the chance that they will make a purchase.
Explains Why Your Business is Different
No matter your industry or niche, chances are that you have a few competitors. A quality value proposition explains to customers why they should buy from your business as opposed to buying from your competition.
By showing that you’re the best option and that the product you offer is the top solution, it’s more likely that you’ll attract the right prospects. When you attract the right consumers that ultimately become customers, you increase your chances of building a group of loyal customers that serve as brand ambassadors.
Conclusion
There are all sorts of factors that impact a business’s chance of being successful. One thing that you don’t want to be without is a value proposition. When written properly, a value proposition can have a huge impact on brand awareness, business value, and overall customer experience.
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Community manager at Visual Contenting. Jacqueline loves to talk about social media trends, new technology and how they help businesses accelerate their marketing efforts.
