What’s a value proposition? A value proposition is a unique declaration of your offer that compels your audience to take an action—like buying your product or service. If you’re not clear what a value proposition is, you aren’t alone. There are many people who are confused about what a value proposition is or does or how to create one. That’s why we put this article together.
A value proposition is the reason customers choose you over your competitors. It’s a promise of results that you fulfill. It’s the key to unlocking their interest, making them loyal to your brand. The best value propositions are easy to remember, unique, and actionable.
A single sentence that describes who you are, what you do, and why it is valuable to your customers. This succinct statement is essential for attracting the right customers to your business, and for making sure that you are offering the right product or service to the right market. When you understand your value proposition, you can use it to refine your business model and marketing message, and it can be a valuable tool in shaping your company’s culture and guiding strategic decisions. There are countless books and resources available on crafting a value proposition.
Who is your ideal customer?
Whether you’re a new startup or an established business, you want to attract the ideal customer. This is the consumer who is most likely to find your product or service either useful or desirable, and who is most likely to purchase and use it. As with any business-related decision, you should start by defining your ideal customer. What is his or her demographic background? What is his or her role? What features will he or she find most desirable? What benefits does your product offer? What are his or her reasons for purchasing your product?
Your value proposition is the first thing potential customers are going to see. It may be the one and only chance you have to capture their interest. It can make or break your business.
Why should your customer buy from you?
Your value proposition is your promise to the customer about why they should buy from you, instead of your competitor. For example, if you have a hair salon, your value proposition is that you will give a person the best haircut they have ever had. If you have a dog walking business your value proposition is that you will walk your customer’s dog at their convenience, give them updates on how their dog is doing, and always be on time.
All great companies have a clear value proposition: remember, it’s a statement that clearly and succinctly describes why a customer should do business with them. Apple’s value proposition is that it produces beautiful, easy to use computers that are also fun to use (I beg to differ, but I probably don’t match their customer profile). Southwest Airlines’ value proposition is that it produces the cheapest air travel around. Nordstrom’s value proposition is that it sells stylish clothes at a great price with excellent customer service.
How can you solve the customer’s problems?
One of the first steps in creating a successful business is figuring out how to solve your customers’ problems. As any good entrepreneur knows, your customers will leave if you do not provide them with the solutions they need. When it comes to writing an awesome value proposition, it is essential to remember that your business is not about you. It is about the people that are trying to solve a problem. Talk about how your company can help them do that better.
You have an awesome product or service. You know that because you wouldn’t have spent months or years developing it if it wasn’t! Now tell the world more about how it solves their problems.
Give a clear call to action.
As you begin crafting your value proposition, be sure to give a call to action that clearly states what you want the reader to take away from your proposition. It is important to take into consideration what your potential client values and develop a value proposition that addresses these needs in order to attract more clients. Remember, a value proposition is not a sales pitch, it is a promise to the reader that they will be satisfied with what you have to offer.
Conclusion
Ever heard of the 80/20 rule? It states that 80% of your business will come from 20% of your customers. If that’s true, why don’t more companies focus on their most profitable customer segments? Your value proposition is a clear, concise statement that highlights your best customers and the most profitable opportunities you have to offer them. Value propositions focus on why your most profitable customers should choose you.
