The Importance of Value Proposition
13 March 2019 / Other
Whether you are selling a product or service, if you want customers to be interested in buying, you need to offer them something they need and want. You need to give them a solid reason why your product will be a better choice over the competitor’s product. You need to make them a promise. This promise that you will deliver some (extra) value and benefits is called the value proposition.
A value proposition should be clear, concise and interesting. At the same time, it should answer three main questions:
What does your company do?
Whom do you serve? (who is your product/service intended for)
How are you different or unique?
In today’s digital economy, where attention spans last several seconds, it can be a bit challenging to differentiate yourself from the competition. That is why a value proposition that is user-centred, and focused on what the user needs as opposed to what you offer is key to getting more customers.
Why Developing a Value Proposition is Important?
Giving your leads and prospects a well-thought and well-written value proposition can be the key to turning them into customers. Of, course, you would have delivered on your promise otherwise you will lose them, but that is a different subject matter. Developing a powerful, attention-grabbing value proposition is important because it can help your business differentiate itself from the competition; attract the right prospects by increasing the quality of prospective leads. Additionally, assist you as an enhancing tool that will help you close more deals, therefore, increase your market share among targeted segments. But having a value proposition is very important for the business too – it improves operational efficiency by setting a quality standard for the product/service you deliver, each time, to every customer.
How do you create a strong value proposition?
To create a value proposition start by brainstorming about your target demographics and their pain points. You can assist the process by using questions such as “who are my target customers?”, “what do they have in common?”, “what do they need that my business can provide?”, “what is important to them?” The main purpose of a value proposition is to identify an unmet need that your target market has, and satisfy it through your product or service. It is a lot simpler to create your value proposition when you offer a unique product or service. But when it comes to products where the competition is high, start thinking in terms of design and customer experience. Offering a more appealing product or a stellar user experience can be the key differences that will guide customers your way.
Tips for Writing a Value Proposition
If you are writing a value proposition for the first time, it can be tricky, but it’s not rocket science. Keep in mind that you need to maximize the most appealing benefits that set you apart from the competition. Try to put yourself in the customers’ shoes, and understand what they need. Think of things like this: when a person is buying a quarter-inch drill, they actually need to make a quarter-inch hole.
And this applies to whatever you sell – even in the online casino and gaming business. People don’t go to play on your website because they want to spend money – they visit your online casino because they are looking for entertainment and social interaction. But they also choose one site over another due to one or all of the following benefits online gaming sites offer: fast and convenient login and payout options, cross-device functionality, good privacy protection and anonymity, a variety of games offered, and lastly, the best playing experience. Now that you understand what creating a value proposition is all about, follow these five tips on how to write yours:
Understand what customers want most, identify their pain point, and define how your product offers them the things they need and want the most.
Point out the benefits they will receive by using your product as well as the differences that make your product superior to the competitors’ products.
Use simple everyday language. Yes, you can use industry-specific terms that would be appealing to the target market, but don’t be too technical.
Keep your value proposition short and precise. A good practice is to write two to five clear and interesting sentences.
Test it. Test whether it is relevant and resonates with your audience. If the answer is no, then go back to the writing board and change it. Then test again. Repeat the process until you have a winner.
It’s your turn now! Write a killer value proposition and start winning customers over!