Did you know that a company's value proposition is the key to its competitive edge? It’s a fact! A well-comprised value proposition outlines why a customer should choose your products and services over a rival.
That is to say that value propositions highlight the unique value of the products and services offered by your brand. Better known as USPs (unique selling points), a value proposition is a place to lay out these important claims—an ideal way to hook clients in and deliver them invaluable service.
What’s A Value Proposition & Why Is It Important?
As promised, this blog teaches you what a value proposition is. It also explains what a value proposition is not. A value proposition in marketing is a clear, brief statement to clients. It highlights the benefits customers get from a company's products or services. This statement shows the company's purpose to both employees and the marketplace.
The term first appeared in 1988 in a McKinsey & Co. industry research paper describing value propositions as simple statements outlining the benefits a company offers. These benefits can be tangible or intangible in nature.
Why is a strong value proposition important? Because it ultimately convinces stakeholders, investors, and customers of the company's worth. If the value proposition is weak, attracting either investors or customer interest becomes difficult to accomplish.
But what’s the difference between a value proposition and a mission statement? That’s a great and justifiable question. A value proposition explains what you offer and why customers should pick you. A mission statement describes an organization's objective. Though the two can share common points, a value proposition focuses on products and services, whereas a mission statement is about goals.
Are there consequences of an ineffective value proposition? Absolutely! Should a brand be unable to communicate its worth or value effectively, it risks the decline of profits, diminished access to financial resources, and potentially, a shutdown of operations altogether.
So, how do you curate a worthy value proposition? Start with breaking down the different elements therein.
Elements of a Value Proposition
A value proposition has three basic elements: Headline, Subheadline, and Visuals. Considering that the vast majority of value propositions are found on company websites, don't forget to include them in digital marketing efforts, too. Wherever and however brands deliver these to their audience, make sure they can see it easily and in multiple locations.
Let’s break down each of these elements in detail, shall we?
The Headline describes the key benefit(s) the customer can anticipate receiving from their engagement exchange with your business. The Headline should be creative and catch the attention of the target audience with ease. It should also be clear and to the point without much room for open interpretation. Lastly, the Headline should appear first.
The Subheadline is sometimes referred to as the Paragraph. Because it is the meat and potatoes of the value proposition. This is to say that this is the place to elaborate on the benefits the Headline promises customers will receive. Share the juicy bits that truly cement the customer's interest in doing business or making a purchase.
The third and final element of a value proposition is the Visuals. Aesthetics can make or break a first impression in this saturated digital world. The Visual elements of the proposition can include various media types: images, videos, and infographics. The main thing is to make sure these Visuals speak louder than the words used thus far. Capture the customer's attention in a way that keeps them talking about the experience even when it’s concluded.
All of these elements come together in the template below outlining how to write a value proposition of your own.
How to Write a Value Proposition
How can you write a strong value proposition statement knowing that this statement can increase sales and conversion rates? Keep reading for explicit examples of some value propositions to help guide you along the way. Additionally, you will learn tactics to create great value propositions of your own.
Let’s start by listing the elements of a value proposition template:
- Identify your customer's main problem by mentioning the solution
- Identify all the benefits your product offers to get them there
- Describe what makes these benefits valuable to them
- Connect this value to your buyer's problem tangibly with the solution
- Differentiate yourself from competitors as the preferred provider of this value
Step 1: Identifying the main problem for a value proposition
You may need to do some research on this topic to start. You can begin to understand this part of the value proposition by talking to other team members. Talk to customer service representatives, marketing specialists, and salespeople to help you brainstorm. They can tell you clearly and with experience, what problems your customers want to solve with your product or service.
Step 2: Identify the best benefits of your product offering(s)
Start by making a list of all the product offerings you sell. For each offering, write down its main benefit. Keep the benefit short and about one nagging need of the customer. For example, if your product offerings are linked to a new bit of software, you would highlight each section of the software within your value proposition template. Then, describe its benefit and why a customer would find it useful.
Step 3: Describe the value of the benefits
Next, prepare to write a new powerful marketing sentence. This sentence should say why the benefit is important for the customer. For example, if customers can get similar software programs elsewhere, point out the difference in savings your product offers as the value.
Step 4: Tangibly connect the value to the buyer's problem
After describing the value, match the buyer's problem with the parts of your product or service that are invaluable. If they match, you can start to make your value proposition stronger. If the buyer’s problem and the products offered do not align well during the brainstorming process, go back and do the steps again. Keep doing them until you find a problem the buyer has that your business can solve.
Step 5: Differentiate your product offerings from competitors
Make your value proposition as unique and creative as possible. Keep asking yourself if your offerings are a special kind of customer service that others don't yet offer. Are there extra services you provide for free that other companies charge for? These factors can truly make your value proposition stronger and stand out from the competition.
A final suggestion is to use a predesigned template to help you brainstorm. Grab this free download from Hubspot featuring 15 value proposition templates to help get you started creating yours today. Once you understand the first five steps, you can easily implement them into value proposition templates on your own.
Even though the reasons why someone might become a loyal customer are fewer these days, having a clear value proposition remains important to your overall success. It helps you know who your perfect customer is. It also shows why your business is the right choice for them. This blog article has given you tactics, tips, a framework, and examples. Use them well to make your special value proposition today.
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