To distinguish themselves from the competition, companies need a value proposition. This is a short statement that clearly articulates why potential customers should want to buy from you and not your competitors. In challenging economic times, your value proposition is your best weapon against price sensitivity. And for small to mid-sized companies vying for attention against larger, more well-known entities, your value proposition is even more important.
What is a value proposition?
A value proposition is a promise of the value you deliver to your customers. It is a critical part of your marketing program and provides a North Star for every customer-facing message. Your value proposition should explain:
- How your products and services solve customers’ problems
- What specific benefits you deliver
- Why you are different from and better than the competition.
A value proposition isn’t a vision or mission statement. Rather, it should be brief and create a clear mental picture. Your audience should be able to read and understand your value proposition in five seconds or less.
Three steps to creating a value proposition
Developing a value proposition will require some soul searching and brainstorming. To be effective, it’s essential to put yourself in your customers’ shoes and consider your products and services from their perspectives. The process consists of three steps:
- Identify your customer. Who do you serve? What problems and pain points do they face every day?
- List the benefits and value you provide. Make a list of the benefits and solutions you provide and quantify their value with percentages, dollar figures and other concrete numbers.
- Differentiate yourself from the competitor. If you had just 10 words to communicate why someone should buy from you, what would you say?
A great value proposition can be the difference between getting or losing a sale. After all, how can you market and sell a product or service if you can’t articulate its value? But like with all marketing messages, crafting a clear, compelling value proposition is not easy. It takes trial and error. Create a couple of options and share them internally and with your best customers. Test them out in your email campaigns. Once you nail your message, you will enjoy the benefits of a clear, concise, customer-centric value proposition that sells. To learn more about how you can create your unique value proposition, contact Trade Press Services today.