Whether you’re in the beauty, marketing, or automotive industry, chances are that there’s a competitor that offers a very similar product to what you offer. This begs the question, why should consumers purchase from your business instead of a competitor?
To answer this question, you’ll need to create a value proposition. If you’re a small business starting out, having an effective value proposition is even more important. The right one can have a huge impact on the number of leads and sales that you’re able to get.
Here’s what you need to know about creating a value proposition in order to boost the success of your small company.
Know What a Value Proposition Is and Isn’t
If you’ve never written a value proposition before, you may be unsure what exactly it is. Let’s first discuss what it isn’t. A value proposition isn’t a catchphrase or a slogan. It’s not an advertisement or a positioning statement.
So what is a value proposition? It’s a statement that portrays the value of your product. It explains why a customer should choose your product over a competing option. In simplest terms, a value proposition offers information about the value, differentiation, and relevancy of your business and product.
Most value propositions include:
- A headline
- Bullet points
- A visual element
If you’re unsure where to start, check out a few of these awesome value proposition examples that get the job done right. Being able to see examples of what a good value proposition looks and reads like can be extremely beneficial when creating your own.
Identify Customer Needs
Before you begin to write your value proposition, figure out the needs and challenges of each of your customers. What does your target audience need that your product provides? What problem does it solve?
By determining what your target audience is looking for and what problems they face, you can create a value proposition that targets those needs. In turn, consumers will automatically see the value in your product and be interested in learning more.
Turn Product Features into Benefits
It’s important to share how your product performs or what kind of technological advances it has. When writing a value proposition, consumers mostly care about what’s in it for them. They want to know how your product benefits them by making their lives easier or more convenient.
Look at what your product offers and figure out how those features can be turned into benefits. For example, maybe your product is a mobile app that can be used to track employee work hours and schedules. Some of the key benefits from this feature could include:
- Time and money savings
- Streamlined timekeeping
- Support for mobile timekeeping
By directly speaking to the needs of your customers, you can convince them that your product is worth buying because it solves a product or benefits them in a way that no other product can.
Develop Value Propositions for Each Customer
Unless you only have a single target audience, which isn’t likely, you’ll need to come up with a value proposition for each customer that you want to market to. Why do you need a proposition for each customer? Simply put, customers all have different needs and problems. By creating customized propositions you can meet these specific needs. Creating a single proposition that is supposed to appeal to all prospects and customers will fall short.
While this requires more time and effort on your part, having customized value propositions is a huge benefit to your company, especially as you grow and find your place in the industry. When creating these propositions, be sure not only talk to the value that your product adds but also tie in an emotional appeal.
Make Them Clear & Concise
Once you’ve come up with the first drafts of your value propositions, the next step is to edit them and to ensure that they’re entirely understandable and clear. Remove any technical jargon or industry phrases that your target audience isn’t likely to understand.
If you want to make your proposition super relatable, look at how existing customers speak. Figure out what words they use to describe your product and use them in the value propositions you create.
You also want to make sure that the tone of the proposition is correct. Remember, a value proposition is supposed to portray the value that your products offer. It shouldn’t read like an advertisement.
Creating a value proposition for your small business is a must, especially if you want to thrive and survive in a competitive industry. Keep these tips and tricks in mind and don’t hesitate to check out examples so that you can perfect the value proposition that ultimately represents your business and what it offers.