Managers are often devoted to enhancing their company’s product or service, believing that this is their most important function. However, to ensure that your business can “click” with your target customers, you must remain as connected to your customers as you are to the products and services you offer.
The specifics of your customers’ wants and needs are as important to you as are the characteristics you offer or the specifics of your service. Value propositions are the link between these two elements of your business. It’s a mantra that binds both sides of your company.
We’ve uncovered the basics of writing an effective value proposition, with plenty of examples to help you ensure that your efforts are rewarded in the value your customers receive daily.
Table of Content
- 1 What is a value proposition?
- 2 Why Is It Important?
- 3 Components of a Value Proposition
- 4 How to write a value proposition effectively
- 4.1 Step 1. Map your value proposition canvas
- 4.2 Step 2. List all the benefits that your products can provide.
- 4.3 Step 3. Describe what makes these benefits valuable.
- 4.4 Step 4. Clearly define the offer.
- 4.5 Step 5. Connect this benefit to the problem of your customer.
- 4.6 Step 6. Distinguish yourself as the most preferred provider of this type.
- 5 Who uses a value proposition?
- 6 6 unique value proposition examples
What is a value proposition?
Value propositions are an easy description of why customers would choose to purchase your item or product. It explains the most obvious benefits that customers get by offering their business to you. Each value proposition must speak to the customer’s needs and establish your business as the solution provider.
A strong value proposition could define what sets you apart from your competitors however it must concentrate on what customers think of the value you provide. In the same way, discussions about taglines and brand strategy should be driven by the value proposition; however, they’re different.
Why Is It Important?
An organization can produce the most effective product on the market. But, if the product is communicated its value, it is likely to be noticed and appreciated.
The product team must play a role in forming an effective value proposition, which will require important input from the marketing department and customer service and sales. This mixture of perspectives from both sides can ensure everyone is aware of the key elements to focus on. In addition, PMs of the product (PMs) must participate in the definition process. This gives PMs a chance for PMs to provide input regarding the values that they consider to be most significant.
Components of a Value Proposition
The value proposition of a business is the primary reason a particular product or service is the best fit for a particular customer segment. This is why it must be prominently displayed on a company’s website and on other touch points with consumers. Also, it must be easy to understand to ensure that the customer can easily read or listen to the value message and grasp the value without needing to explain it further.
A value proposition that stands out utilizes a specific structure. A value proposition that is successful typically includes a clear, strong headline that conveys the benefits to the customer. The headline should contain an unforgettable phrase, sentence, or tagline. They often incorporate appealing slogans that are the basis of successful marketing campaigns.
A sub-headline is usually placed under the headline, extending the details of the value delivered and providing a concrete reason why this product is better than the alternatives the customer is considering. It can be a brief paragraph that is generally anywhere between 2 and 3 sentences. Subheadings are a means to highlight the product’s main characteristics or advantages and are usually enhanced by using bullet points or another method to highlight the standout features.
This type of structure permits consumers to look over the benefits quickly and identify the product’s attributes. Visuals are a great way to increase the speed of communication between the business and the consumer. To create an effective value proposition, businesses typically undertake surveys to discover which message resonates with their clients.
How to write a value proposition effectively
Step 1. Map your value proposition canvas
Value proposition Canvas is an instrument that lets you can map out your customer’s profile and your product alongside each other to see how they relate. Potential customers will have expectations, needs, and issues. Your product should aim to address these needs.
Tasks to be completed Jobs to do: Customers utilize products and services because they are faced with physical, social, and emotional obligations to fulfill.
The gains or expectations If you are looking for the right product or service, the customer may have expectations about the item, such as cost, ease of use, and design quality.
Points of pain: Customers will not purchase a product if it comes with specific pain points, such as things like high cost and poor customer service or if they’re complicated or aren’t of good quality.
Services or products Your product or service is supposed to help the client complete the task at hand.
Gain creators Your product must aim to generate gains for your customer. This includes providing the highest-quality product for the most affordable price.
Pain relief products: Your product should aim to alleviate pain and be simple to use and secure.
A value-proposition canvas can be the most effective method to determine if you’re meeting your customer’s requirements for your product. It can also be useful when creating products because you can sketch out the customer’s journey first and then use that data to match the product with your customers’ needs and expectations.
Step 2. List all the benefits that your products can provide.
The process could be as easy as listing each item you sell and then describing the primary benefits. The benefit should be clear and focused on a specific customer requirement.
For our software for tax preparation sample in our tax software example, you’ll provide every tax template and explain the benefits it offers and the reason a client might need it.
Step 3. Describe what makes these benefits valuable.
Next, add a paragraph explaining this benefit’s importance to the client.
In the same way, as in the previous example, it would mean that the customers have low-cost tax documentation available to them, and this typically costs millions of dollars.
Step 4. Clearly define the offer.
Our headline is dedicated to the proposition: “Outsourced Split Testing.” In the first paragraph, we elaborate on this, stating our ability to “[build] A/B, Multivariate, and Personalization Experiments across the entire customer journey.”
This is the most important aspect of a value proposition. If the reader can’t immediately identify what the product is being advertised for, then the purpose and the reason it’s unique aren’t crucial.
Step 5. Connect this benefit to the problem of your customer.
Then, you need to match your buyer’s issue with aspects that make the product unique. Do they match? If they do, you’re now ready to improve your value proposition to distinguish your products from competitors. If they need to be aligned, follow the above steps until you identify a genuine buyer’s need and a feasible solution for your business to satisfy that need.
Three templates we believe are great at connecting buyers’ pain points to value:
Step 6. Distinguish yourself as the most preferred provider of this type.
Finally, you must refine your value proposition in order to make your proposition unique. Is there any specific service your company offers that other businesses don’t? Do you offer additional services that others are charging for? These aspects can help distinguish your proposition of value from your other companies while focusing on the customer’s needs.
Who uses a value proposition?
It is also important to understand that an item that is a value proposition isn’t intended to be used solely by salespeople or posted on your website immediately. It is, in fact, an essential statement that many people are making use of.
Copywriters will then take the value proposition and translate the message into copy for your site.
When your branding staff creates digital, advertising, and media purchases, or copy, they’ll begin by establishing the value proposition. They’ll also need personas, your branding strategy, and your strategy. The value prop is utilized by these professionals.
In marketing through digital channels, the campaign team will have to know the significance of the product. Who is it for? Why should they be concerned? All of the items covered in this value proposition.
The designers will need to design visual representations of your value-added product. Innovative, distinctive designs, logos, and graphics each of those elements must enhance your value proposition and should be uniform. They will be the consumers of your value-added product.
Marketing Communications team
Your marketing team naturally will require it for any kind of marketing, web-based and social media search, etc.
Sales enablement is another area even the sales enablement team must make use of the value prop in sales training tools such as battle cards and playbooks.
6 unique value proposition examples
It isn’t easy to find the perfect value propositions. It’s likely because it’s difficult to come up with a good one. I see imperfections or opportunities for improvement in the majority of worth propositions I encounter.
I’m fully aware that I’m not a perfect customer for many of the cases that follow, and my comments are based on educated hypotheses and should be checked.
Here are some examples, along with my thoughts:
- Very clear as to what it is;
- Specific lead paragraph
- Relevant images that back up claims based on text;
- The app comes with A booster–“Instant sign-up. No credit card is required.”
- It’s easy to see what it’s and to whom it’s for.
- Sub-headline with specific benefit;
- Relevant visuals;
- Easy transition to features and advantages.
- A clear explanation of the nature of it and who;
- A list of benefits and features in the subheadline
- Relevant image.
- Short explanations of the purpose (“Your Notes”) as well as the value it offers (“Organized”) and why it’s great (“Effortless”).
- The key features and benefits are listed in the subheadline
- Relevant image.
- The headline is very clear;
- A clear call to action
- Relevant image;
- The missing link is a comparison with the competitor or more information in an additional sub-headline.
- Similar to Evernote, the headlines are concise and clear.
- Booster that includes “Sign Up Free” and “Sign up, It’s free”;
- The use of third-party reviews to verify and compare with competitors.