What makes you unique as a brand that your customers can never get elsewhere? When people visit a brand, they want to know the value of their presence. What are the deals and benefits of shopping here? What is unique about that one store that makes it superior? This is where Value Proposition comes in. Today, we will talk in depth about value proposition, its purpose and its impact on a business.
What Is Value Proposition?
A value proposition is a company’s promise of value to the customer for the benefits of the products. A value proposition, in essence, specifies what makes a company’s product appealing, why a customer should buy it, and how the value of the product or service differs from its competitors.
The value proposition is the essential part of marketing strategy due to its definition of delivery of promise; this statement should convince the potential customer about getting benefits of two products for one. Unfortunately, many businesses disregard this potential as they mark it under vision and slogans; however, they are far too different from either of them.
Purpose of Value Proposition
Customers are constantly looking for the best possible deal at the best possible price and quality. The value proposition is the company’s promise to the customer to ensure the best possible value.
The value proposition is an effective tool for increasing sales and building a customer base. A perfect and compelling value proposition can also improve the effectiveness of a company’s marketing strategies and is widely regarded as the most effective and broad-reaching marketing activity.
Components of a Value Proposition
A Value proposition should consist of four parts: capability, impact, proof, and cost (Customer budget). The value proposition is drafted for a specific industry based on these parts.
- Target Market – The first part is to gather your target market and know your customers. Analyse these customers and their desires and provide a number one reason to choose a specific proposition. This reason must be sound and visible on all the web pages so that the customers would understand the benefits without any explanation.
- Structure – A proposition that stands out has a system, like a bold headline that states the obvious. These propositions formed are in several sentences, unlike taglines and slogans. Below these headlines are subheadings that specify the deal and benefits, which are precise and to the point for a clear understanding.
- Costs and Benefits – Assess the cost incurred of the products and services provided as benefits to the customers. The difference between the benefits and cost is the value provided.
- Competitor Analysis – After analysing your target customers and your own company, assess the market’s competitive landscape. Determine your primary competitors’ strengths and weaknesses, and identify ways to differentiate your company from them.
- Customer Clarity – The hype should be for the customer and not the product. The customer needs the benefits, so ensure that the customer’s needs are met before hyping up a product.
- Design Is The Vision – People notice certain signs when they are visually appealing as texts can be convincing, but colour can amplify the deal.
Value Proposition Canvas Example
This canvas is an example that shows the factors taken into consideration while designing a proposition sample. Since our focus is on the unique selling point, we note down the features, benefits, and experience and analyse the customer habits.
How to Create Your Value Proposition
You don’t need a huge marketing or design budget to put what makes your company the best front and centre in your messaging – just a little focus and two main points to observe from the user’s perspective.
- Identify your Value Proposition
What is the one benefit your company is known for?
It is essential to dig into this question as this is the unique selling point of your company. It can be a product or service, but if it is catching the attention of your customers, then you can propose that specific product or service for a value proposition to the customer. It can be your return guarantee system, free demos for store setup, seasonal shopping catalogues etc. Identify your unique selling point and strategise it according to the customer copy.
- Communicate with Clarity
First and foremost, prioritise your value proposal. It is necessary to add the best proposition at the heading and the second most important part at the subheadings. Please make sure they are visible together for customers to read and grasp immediately. Many formats are followed for a value proposition, but a heading and sub-heading format has always worked for brands, especially on homepages.
Perfect Your Promise
Value Proposition is one of the most critical strategies in the marketing world, so make sure you concentrate on all the propositions on the homepage, products page and website. This ensures the continuous flow of customers, which helps with retention, helps provide the best for your customers with added benefits.