Why should you even bother with a value proposition?
It isn’t hip. Nor sexy. Even the term value proposition feels like a dirty phrase that out-of-touch university professors discuss in a dingy dark room.
But you’ve been told that without a customer value proposition your business is not going very far —especially not in this very competitive online space. So you build and write one. Use it for one or two of your marketing campaigns. And then wonder “What now?”
Here’s the thing:
When you build a value proposition, you give birth to a hero. And a hero needs the right opportunities to fulfill his/her full potential. The problem is that many businesses squash their hero’s powers before he/she can take off. They put one value proposition to work in one marketing campaign. But never use it for anything else.
I know. I know. I just called the unsexy value proposition a hero. But it really is. Don’t believe me? Well, buckle up. Today, I’m going to show you why.
Let’s start with a basic question:
What is the importance of a value proposition? A value proposition is the foundation of a brand messaging strategy. It’s the guide that ensures the sales and marketing team have a cohesive message whenever they talk to the customers. Also, it ensures that you equip your people with the right words to say so that customers understand exactly what it is that you do.
As you can see, a solid value proposition not only gives your ideal buyers a reason to choose you. But it also directs how your team talks to your leads and customers. This means the value proposition touches every point in the buyer’s journey. It’s the basis of your PPC ads, landing pages, or investor presentations.
So now you’re thinking: “Ok, great! But how does this translate into how I run my business? What should I say to convince everyone in the team that building a unique value proposition is worth spending the time and manpower on?“
Well, here’s your cheat sheet of value proposition benefits to convince your team of the importance of having one.
What are the benefits of a unique value proposition in marketing your products or services?
Nailing your startup’s value proposition affects every facet of your business. Sure. You can use to to find a customer-centric headline for your landing page. But that’s only touching the tip of the iceberg. A compelling customer-centric value proposition also benefits your startup in more ways than that:
- It increases conversions and revenue.
- It provides a unifying message for the marketing and sales team to use
- It makes it clear to buyers why they should buy from you
- It gives you a competitive advantage
- It makes your business irresistible to employees who share the same values
- It builds loyal customers who tell others about you
- It perks up the interest of investors
- It decreases churn and promotes happy customers
- It increases the customer lifetime value
As you can see, a good value proposition benefits your business in many ways. Let’s talk about them in detail.
1. It increases conversions and revenue
A few years back, Copyhackers tested 9 homepages to see if clear value articulation can increase clicks and sign-ups in the pricing page. Their study concluded that optimizing homepage headlines based on the value proposition statement increased average conversion rates in the pricing page by 34%.
I’m not surprised. The homepage is where many of your website visitors land. If you want them to stay, mooch around and check your offers out, you have to make it clear why you’re better than other solutions on the market. Otherwise, they have no reason to hang around. And when they’re not hanging around, they’re not buying anything either.
2. Provides a unifying message for the marketing & sales team to use
How can your customers be expected to understand your value proposition when your marketing team doesn’t?Flint McGlaughlin
A solid value proposition is the foundation of your brand strategy. When everyone knows what it is –and most importantly, agree with it– then you already have the messaging that they can use whenever they’re facing your customers.
Why does this matter? Because customers don’t usually buy your offers the first time they find out about you. They size you up first. They research to check your claims. They ask questions on forums. They read customer reviews. They weave in and out of your sales funnel through many different points of contact. So if you want your offer to be etched in their consciousness, everyone in your team should repeat the same message wherever your customer is. This helps solidify their belief in your company as they slowly whittle down their buying choices.
3. Makes it clear to buyers why they should buy from you
The words you use online dictate whether a person buys from you or not. The words you use are what you have to convince the buyer on the other side of the screen. This means you have to be clear and deliberate with your words so that the person understands exactly what you’re selling. After all, a confused buyer doesn’t buy.
When you have a clear value proposition based on the voice of customer data, you talk to your customers in a way they understand. It calls out their pains or motivations and uses their own words to describe what they’re going through.
4. Gives you a competitive advantage in the marketplace
According to Get2Growth, 100 million startups are launched every year. You know what that means? It’s going to be one hell of a job getting yourself noticed. Many distractions are vying for the attention of the same people you want to attract. Everywhere your customers look, a carrot is being dangled at them to get their attention.
So if you want them to notice you, you’ve got to have something better than a carrot. You need a competitive edge. This edge you get by having a compelling value proposition that appeals to their needs. When you get this right, your target audience will gravitate towards you. When that happens, your competition will be lagging far behind before they know what hit them.
5. Makes your business irresistible to employees who share the same values
If you’ve been in business for any length of time, you know hiring the best people doesn’t come easy. And hiring employees who treat your business not just as a “9-5” job, but one they also care about? Talk about a needle in a haystack. Wanna make this easier? Do it with your value proposition.
It’s not something that many talk about. But a value proposition is your trumpet call to like-minded people. People who believe in your values as a company. When you regularly talk about your value proposition, you also get the attention of potential employees who will be perfect for a job in your company. Why? Because they already share your values.
6. Builds loyal customers who tell others about you
Studies show that consumers don’t just buy products. Those who stay loyal are the ones who share your value. So when you have a value proposition that your buyers care about, they see you not just as a “money-grabbing” business, but one that is instrumental in working towards the greater good.
And when you take care of them and show them that you have the same values, they attach themselves to your cause. They’re not just customers anymore, but members of your community. This is how you get customers who become your evangelists. They’re not with you only for the products you sell, they’re with you because they identify with your values.
7. Piques the interest of investors
You may have to build a different value proposition just for investors. But the important thing to know for now is this. When you need to convince investors to invest in your company, your value proposition plays a big part in quickly making them see the viability of your business. This is how you stand a much bigger chance of getting them to take that leap of faith to invest in your startup.
8. Decreases churn and promotes happy customers
If you don’t clearly tell buyers what they’re getting, they’ll come up with their own ideas. You might meet their expectations sometimes. But often, you won’t. This is how you cause buyer remorse. This is how you get customers who run amok leaving bad reviews because they didn’t get what they wanted —all because it wasn’t really clear to them what you were selling.
If you don’t clearly communicate the value of your product or service, you can’t expect the buyer to instinctively know what it is.
9. Increases customer lifetime value
When customers understand and believe your value prop, it’s akin to “finding their people.”
That’s a powerful lever in your marketing strategy. When customers identify with your company, then you’ve got someone who will stay with you for a long time. And guess what? That’s how you get loyal customers who will buy any product you release and support your cause all the way. Just ask Apple.
If you want to thrive in the cutthroat online environment, it’s time you build a customer value prop
There are many different ways to build a value proposition for your business. Choose any one of them. They all lead you to the same goal. The important thing is that before you build a marketing strategy. And before you get your team to sell your products, build and write down your value proposition first.
This is how you will achieve effective messaging that everyone in your company can use. When you have this, you maximize your chances of product-market fit. You’ll have prospective buyers who are clear on what you sell. Happy customers who are pleased with what you offer. And a team that aligns with your purpose.
Didn’t I tell you? Your value proposition is your hero. About time you give it its wings.
What should be in a value proposition?
A solid value proposition should include who you serve, your company values, what makes you different from the competition, the benefits of using your products, and proof of your claims. It’s also written based on the voice of customer data and not based on gut feeling.