Why should you build a value proposition?
It doesn’t sound hip. Nor sexy. Even the term value proposition feels like a phrase that out-of-touch university professors discuss in a dingy dark room.
And yet, you’ve heard too many times that without a customer value proposition, your marketing efforts have no legs to stand on — especially not in a competitive online space. So before you put into action a marketing strategy, what you really want to know is: Why should I bother? What is the importance of a value proposition in marketing?
A solid value proposition is the big idea behind your product, brand or service that makes customers quickly see whether your offer is the one that they’re looking for. It attracts ideal customers and repels those who are not a perfect fit. Because of this, it’s the foundation of the messaging on your marketing channels such as on your website, PPC ads, or social media.
So now you’re probably thinking: “Well, great! Now I just have to convince everyone in the team that building a unique value proposition is worth spending the time and manpower on!“
I’ll make that easy for you.
Customer Value Proposition Benefits for Marketing
Here’s your cheat sheet of value proposition benefits to convince your team just how important it is in selling your products or services online.
1. It increases website conversions and revenue
A few years back, Copyhackers tested 9 homepages to see if clear value articulation can increase clicks and sign-ups on the pricing page. After a series of tests, the study concluded that a well-articulated value proposition on the homepage increased the pricing page’s average conversion rates by 34%.
I’m not surprised. The homepage is where many of your website visitors land. If you want them to explore your site and check out your offers, you have to make it clear why you’re better than other solutions in the market. This is how you get them to stay and explore the rest of the site. The more time they spend on your site, the more likely they are to convert.
2. It gives a unified message that the marketing & sales teams can use
A solid value proposition is the foundation of effective product messaging. When the sales and marketing team know it by heart – and most importantly, agree with it – then they already have the persuasive argument they can use whenever they’re facing the customers.
Why does this matter?
Because customers don’t usually buy your offers the first time they find out about you. 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 the team should repeat the same message. This solidifies the customers’ belief in your company as they whittle down their buying choices.
How can your customers be expected to understand your value proposition when your marketing team doesn’t?
Flint Mcglaughlin, MECLABS
3. Makes it clear to buyers why you’re the best available option
How you communicate your value to customers plays a critical role in their purchase decision. When you’re clear and deliberate with your words, the customers understand exactly what your product does and how it can benefit them.
This clear & persuasive messaging gets customers’ attention and makes it clear why they should buy from you.
4. It differentiates your product or service from the competition
One hundred million startups launch every year. This means it’s going to take one heck of a job getting yourself noticed.
Many distractions vie 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 need 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 company values.
6. Attracts quality customers who are also apt to stay loyal
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 buyers, 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 the origin of buyer remorse. This is how you get customers who leave 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 like the heavens opened and their long search is finally over. They direct their attention at you and feel a sense of connection with your product, service or brand.
That’s a powerful lever in your marketing strategy. When customers identify with what they buy, then it’s more likely for them to be loyal customers (provided you continue to look after them while they’re in your ecosystem, of course).
This is how you have loyal customers who queue up every time you release a product. And will talk about you even in their sleep. Just ask Apple.