How to Create a Value Proposition
A value proposition is a clear statement detailing the promise of value to be delivered and the reason why a potential customer should buy from you.
It is the #1 thing that determines whether people will be turned on or off by your product or service.
Getting the value proposition right can give a huge boost to your company’s conversion rates, but a poor or missing one will have your audience clicking the back button in seconds.
What is a Value Proposition?
A value proposition is a clear statement of value that anyone stands to benefit from your business. It should clearly state the following:
- What specific benefits you will deliver to the customer (quantified by value)
- The differentiation between you and the competition – why they should buy from you.
- How your product or service will solve or improve your customer’s problem
On a website, your value proposition should be the first thing visitors see when they land on your homepage. However, it is advisable to have it visible in all other entry points of the website.
What Should Your Value Proposition Contain?
As a rule, the value proposition usually consists of a block of text (including a headline, sub-headline, and a sentence or two of text) accompanied by a relevant image (a photo or graphic).
Use this guide to help you get started:
- Headline: Grab the customer’s attention. Explain what your product/service is and what the problem is you are solving in 1 short sentence. What is the end benefit of using it?
- Sub-headline: A specific reason why your product or service is useful and unique.
- Paragraph: Keep this to one or two sentences that detail who the target customer is and what your company does. Use bullet points if you prefer to list the key features or benefits.
- Image: This visual should reinforce your message and be relevant to what you are offering.
Always make sure your message has clarity and is easy to understand. It should be written in the language of the customer and immediately address their problem. Draw people in with a sufficient amount of text (concise is better; not too many texts) to leave them with a clear and compelling value proposition. Avoid using superlatives, such as ‘the best’ or ‘most amazing’, as they will just come across as jargon.
To help you know if you’re on point, you can evaluate your value proposition based on the following:
- What specific product or service are you selling to people?
- Who is your target customer (which group of people will benefit from using it)?
- How does it benefit the people using it?
- What is your unique selling point (how is your offering different from the completion, and why should people buy from you instead)?
What the Value Proposition is Not
1. It is not a product description. This looks like a value proposition, but it is not since it does not define who the product is not meant for.
2. It is not a catchphrase.
3. It is not a positioning statement. This is not a value proposition:
How to know a Great Value Proposition
A great value proposition reads clearly to everyone. It does not contain unnecessary vocabulary or jargon that the average user will find difficult to understand. It has plain language that the typical target user understands. The value proposition should be something everyone can read, understand, and tell others about, without losing the message. Here’s a simple checklist to help you know a good value proposition:
- Strive for clarity: it must be easy to understand
- Communicate value: What results will customers get from your offering?
- Unique selling point: does it say how it’s different or better than the competition’s offers
- No hype: Avoid using words superlative and jargon like “best-in-the-market”, “most amazing”, “best and only option”, etc.
- Short: is it something that can be read in under 5 seconds? If not, you probably should review it.
Avoid Using Big Words and Jargon
The truth is that your customers mostly use a different language than you to describe your offering. So, you want to make sure that your value proposition is not speaking in a language or term that only you or professionals understand. Therefore, the statement should read clearly, in a language that is not strange to your customers/audience. This, for instance, is not a value proposition:
Drive up to 10x ROI, enhance product deliverability, get performance-focused marketing analysis, using insights from revenue-based research and the best marketing automation tool.
While this may sound pleasing and attractive to you or another professional in your line of work, it may sound verbose and confusing to your target audience. Whatever will make a customer read the text over and over again before getting the core message is what you want to avoid when crafting your value proposition. So, the first point here is to strive for clarity.
Keep in mind that it is okay to use plenty of texts to describe the value of the offering properly. However, the first few lines should be catchy and concise enough to draw in your audience, whetting their appetite to discover more. Essentially, creating copies that achieve this is where most businesses stumble.
Why Even Bother About Value Proposition, Anyway?
Your value proposition is different from what your business/company stands for and your products or services. Value proposition often focuses on a particular product or service and describes what the user will benefit from it. Here are a few more reasons why you should pay close attention to your value proposition:
- Visitors will notice the value proposition more quickly when it is concise it
- Most people only skim these days. They prefer to grab the information they need in the shortest texts possible.
- Research showed that most visitors would recall more services that a company offers when more services are listed
- Features and benefits naturally attract people.
- People preferred to have information presented in bulleted lists
If you are struggling to come up with something that makes you unique and more attractive to customers, try adding some extra value to your proposition with the following offerings:
- Customising your offering to your audience
- Offer to cancel the contract at any time
- Free set-up time
- Free shipping. You may want to cap it at a particular amount to encourage more purchases
Examples of Great Value Propositions
1. The Munro Agency
The is an example of a great value proposition:
In two sentences, anyone can grab the message. It shows the service it delivers to customers, who can benefit from the service, and it features a relevant image and a subheadline.
Notice that this value proposition features a relevant image, tells the user what they stand to gain, as well as a booster – which is the “Get Started” prompt.
GitHub’s value proposition concisely shows how developers will benefit from using the product. It also includes a specific lead paragraph, relevant images, and a booster — by clicking on ”Start free trial” or “Contact sales”, visitors can either sign up or connect directly to the sales team.
HubSpot presents a concise text explaining how CRM empowers users to simplify their work and achieve more. Note also that it includes a relevant image, subheadline, and a specific CTA.
Not Sure How to Start?
No worries at all. If you notice your business lacks a value proposition, we can help you create a value proposition that is compelling for your offering. You can also use the tips we’ve already discussed in this post. For more, find out how to reposition your offering at The Munro Agency.
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