Here’s why your business needs a solid value proposition (PART 2)

Things to consider, research or compile before you start creating your value proposition

What do you offer?

This, simply put, is a specific explanation of your products or services. Make sure you take into account the point of view of your target audience and explain your services in a way that will appeal to them. Don’t forget that wording matters. Even if you offer exactly what they’re looking for, if it isn’t worded in a way that makes that clear, potential customers will look elsewhere.

Think about your target customers and their needs, and make sure your value proposition addresses their needs as closely as possible. Make sure the focus is on how your services will benefit your audience. Include specific numbers or statistics if possible. For example, have your customers seen an average percent increase in revenue? Do they save a certain number of hours per week? Have they reported an increase in performance since they started using your services?

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Who do you serve?

Before you start writing your value proposition, you will want to be perfectly clear on who your target audience is. To accomplish this, research your audience to understand who they are and what they look for in products or services like yours.

You’ll want to have answers to the following questions:

• Who are they (demographic data) and what they do (interests, careers)?
• What are their values?
• What are their needs or pain points?
• What challenges did they experience before working with your business?
• What motivated them to search for what you offer?
• Was there anything about your particular brand that showed that you catered to their needs?

What differentiates you from your competitors?

It is essential that your value proposition includes a unique selling point or feature that sets your company apart. Even if you already have an idea of your differentiating factors, it’s a good idea to spend some time doing some competitor research. The best way to go about doing this is by checking out their sites and examining their marketing campaigns.

Then ask yourself the following questions:

• What are your competitors lacking?
• What do you do better?
• Why do these differences matter to your customers?

Once you have clear answers to these questions, you can begin to write a more effective value proposition.

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So, what makes an effective value proposition?

• Summarizes what your company does in one sentence: However, for maximum effectiveness, try to articulate what your company does in a single sentence; your value proposition needs to be both clear and instantly credible.
• It is specific about the benefits of your customers’ experience: A good value proposition needs to be as specific as possible about the benefits your products and services provide to your customers.
• It shows how you solve a specific problem or address a specific need: Your value proposition needs to be clear on what problem or need you are addressing, and also demonstrate how you solve this problem.
• It explains why customers choose you over your competitors: To be effective, a value proposition needs to be written with your ideal customer or buyer persona in mind. It needs to clearly and compellingly explain why the customers should choose you instead of your competitors.

 How to craft a compelling value proposition

Here are a few tips for turning the basic facts you have compiled into a clear, compelling value proposition. But note: The value proposition that works best for your business depends on your brand and audience.

Determine the needs of your target audience

Writing a strong value proposition will be nearly impossible if you don’t have a clear understanding of the needs that your customers seek to fulfil.

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Here are some questions you should be asking about your target audience:

• What are your customers’ current priorities? Lowest price? Best customer service?
• Are there groups of people in your customer base that experience the same pain points?

Identify your unique offering

What is at the centre of everything that you do? Look to your company’s mission statement and core values to help identify this. After you have a solid understanding of your customers’ needs and what differentiates your business from others, it is time to establish the solution that you’re offering.

Here are some questions you should be asking about your business:

• How is your product a solution to your customers’ pain points?
• What makes your product/service unique?
• Why should your customers buy from you instead of your competition?

Aim for simplicity

Many businesses make the mistake of using vague language that all of their competitors are using. When crafting your value proposition, use straightforward language, be clear on what you are offering and avoid industry jargon at all costs. This will make it easy to understand your products and services and make you more distinctive.

Make it memorable

Most of your potential customers will read several other companies’ value propositions in the course of their research. That is why it is extremely important for you to make sure they remember yours (and your company’s) by incorporating unique language, even if it’s just one word.

Focus on value

As the name implies, your value proposition needs to convey the value of what you’re offering potential customers. Although your differentiating factors may be features like great customer service or a user-friendly interface, it is important to also highlight how your business helps customers achieve a specific goal.

Write your value proposition as a concise paragraph

Take the information you gathered in the previous steps and use it to guide your value proposition statement. You should be able to convey the value of your business in 50 words or fewer. Don’t be afraid to use visual content to help aid this.