Value Proposition: Why do you need it, Examples, and More
There is a famous saying from Warren Buffet “Price is what you pay. Value is what you get”.
A great value proposition is one way your company can illustrate and introduce its value upfront.
Moreover, the value proposition your company describes is the main selling point and draws in customers.
Keep on reading to learn more about it in detail.
Value Proposition and its Elements
A Value Proposition is an answer to the simple question:
“Why should I buy from you and not your competitor?”
Moreover, your value proposition should be simple, unique, and measurable.
It is essentially the most important aspect of your marketing copy.
Let’s learn more about it in detail.
Your value proposition is the core of your competitive advantage and it clearly states why someone should buy from you instead of your competitors.
Moreover, it is also one of the important conversion factors.
A great value proposition can be a difference between losing a sale and closing it.
A value proposition is the promise of value that your customer expects your business or brand to deliver.
Moreover, it is more than just a product or service description, it is the specific solution that your business will provide to the customer.
Your value proposition is a unique identifier for your business and without it, the buyers do not have a reason to make a purchase.
They may even patronize your competitor as they are communicating their value proposition more clearly in is marketing materials and sales process.
While your value proposition often helps to differentiate you from the rest of the industry, keep in mind it is not a slogan, a tagline, or a mission statement.
The above types are accessories to your brand, however, your potential customers and employees do not choose one business because of these elements.
Furthermore, your value proposition goes deep into the problem you intend to solve for your buyers.
And what makes your product or service the perfect solution.
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Elements of Value Proposition
There are three main elements of value proposition in general.
We will discuss the value proposition for your website in the next section.
Headline The headline of your value proposition describes the benefit your customer will get as a result of making a purchase.
Moreover, your headline can be creative and catchy, however, it should be clear, concise, first, and foremost.
Subheadline or Paragraph Subheadline or paragraph should explain in detail what your company or brand offers, who serve it, and why.
Furthermore, in this section, you can elaborate on the information in the headline.
Visual Element In some cases, a video, infographic, or image can help to convert your value proposition better than words can.
With the help of these three elements, you can make your own after you build a value proposition canvas.
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Value Proposition Canvas
A value proposition canvas is a visual tool that helps you to position the product or service you are providing around the needs of your customers.
The main objective of the value proposition canvas is to identify how your business or brand provides value within the market.
Moreover, you can use the value proposition canvas when introducing a new offer into the market or when enhancing an existing one.
This canvas consist of two major components:
- the customer profile
- the value map
The customer profile makes up the first half of the value proposition canvas.
In this section, you will need to start with the needs and wants of your customers.
Let’s discuss these:
Customer Jobs What is the job your customer needs to complete or the problem they are trying to solve with your product or service?
The answer to this sums up “customer job” or the purpose of your product or service.
Customer Expectations Your ideal customer will have an expectation of what your product or service will do for them.
Moreover, you will have to use research to explain what your customers expect for you to make a purchase.
Pain Points While completing the “customer job” what pains do your customer experience?
Are they taking any risks or do they experience negative emotions?
Some of these pain points are helpful on the value map.
On the other hand, value map, the following will help describe what your business or brand offers.
Gain Creators These are characteristics of your products or services that will make your customer happy.
Moreover, think creatively about the elements of happiness and consider their financial and soil goals as well as psychographics.
Pain Relievers This section helps to define how your business will exactly help your customers to overcome those pain points.
Products and Services While this section will not list every single product or service you are offering, it should include the one that creates the most gain and alleviate the most pain.
Value Proposition for your Website
The value proposition is an important factor for your website as well.
Consider this: Value proposition for Facebook is a simple one: Connect with your friends and the world around you on Facebook”.
Facebook answers to it s: “What makes your organization special” is “We can connect you to anyone, anywhere”.
How can you do that? Find out below!
Your value proposition should be the very first thing your visitors see when landing on your homepage.
Moreover, it should be in all major entry points to your website.
Why should your Website have a Value Proposition?
The value proposition is beneficial for drawing in customers, however, it can also help to define your business strategy.
You can use your VP to give in your decisions about certain aspects like:
- innovations to your product or service
- define the work culture in your company
- choosing graphics you are using for value proposition and across your website
- the layout of your website
- placement of CTA buttons
- everything that makes an effective web design and development
Moreover, you are in a good organization with a strong VP: 69% of B2Bs have a value proposition.
However, studies show that only 2.2% have a value proposition that is “useful” by customers.
If you can get this right, steel growth will be within your reach.
Studies indicate that brands with a strong value proposition enjoy 76% growth over a decade.
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Writing a Value Proposition
In order to write the value proposition, consider the following steps:
Step 1# Identify the Main Problem of the Customer While this needs some upfront research, you can start by speaking with different members of your team.
Customer service reps, marketing specialists, and salespeople can fill in the gaps about problems your customers are looking to solve.
Step 2# Identify all the Benefits your Product Offers In this step, list out every product you sell and describe its main benefit.
The benefit, however, should be concise and focused on a signal customer goal.
Step 3# Describe what makes these Benefits Valuable Next, add another sentence that explains why a certain benefit matters to your customers.
Step 4# Connect this value to your Buyer’s Problem Next, pair the problem your buyer is facing to the elements that make your product or service valuable.
Do they alighn> If yes! Then refine your value proposition to differentiate your offerings from the competition.
However, if they do not align, repeat the steps above until you find a valid buyer and viable solution your business offers.
Step 5# Differentaite yourself as the Preferred Provider Finally, make amends to your value proposition to make it unique.
Do you offer any additional services? Is there any specific customer service offering your business provides that your completion does not?
These can help you to differentiate your value proposition from competitors while keeping the focus on the buyer’s needs.
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Formation, Tips, and Examples
In order to create a unique value proposition, you need to review the benefits your company provides.
Moreover, you should get into the habit of trying to infuse your VP into every aspect of your copywriting.
We will also discuss some popular examples so that you can understand how they can help.
How? Keep on reading.
Formating a Value Proposition
What does your business bring to the table? How much are customers expected to pay and do they face any risk while conducting business with you?
Lastly. how do your company and offers make the life of your customer better?
Keep in mind that this is not a tagline, slogan, or catchphrase. Nor it is a positioning statement.
Consider the example of Tesla which seeks to “accelerate the world’s transition to sustainable energy”.
Let’s analyze that value proposition so we can break it down into manageable parts.
A strong VP should include:
Clear Potential customers should be able to read your BP quickly and understand what you have to offer in three seconds or less.
Moreover, make sure it is written with as few words as possible.
In the case of Tesla, the VP’s call to action is the need for sustainable energy in a clear and concise manner.
Unique Make sure to know what is special about your brand or company.
While Tesla is not only the electric car company in the world, the message of accelerating into a more sustainable future makes their VP more interesting.
Desirable What you are offering is what others want and that few others offer.
Fast electric cars that also support the environment are what Tesla is offering and who doesn’t want it?
Specific Lastly, focus on the message and communicate it loudly.
That should also be that your company stands head and shoulders above the rest.
The value proposition of Tesla is so powerful and aims for a specific goal.
“To help us reverse our dependence on oil with fast and sustainable electric cars”.
Tips on creating Engaging Value Preposition
In order to create an engaging value statement, you can ask yourself the following:
- What product or service is your company selling? You need to give a clear overview of what your customers are buying.
- What is the end benefit of buying or using your product or service? How will you satisfy the needs of your customers? And what customer experience can they expect?
- Who is the target audience? You will need to develop a stronger relationship with your audience if you can identify their wants, likes, dislikes, and biggest pain points.
- Why is your offer so unique and different? In this, your job is to find the exact words that describe your business and marketing strategy and your unique selling proposition so that they appeal to the customer segment you are targeting.
Now, let’s look at some of the examples of value propositions.
Dollar Shave Club, Example #1
A personal grooming brand Dollar Shave Club offers personalized grooming supplies.
Now, let’s see what this brand stands up to the competition in the value proposition section.
What product or service are they selling? Personal Grooming supplies.
What is the end Benefit? Personalized products and top-shelf grooming routine.
The Target Audience? Men who want the best and unique grooming products.
Offers that make it Unique and Different? A number of brands sell razors, however, no other is offering personalized grooming products that are “as unique as you are’.
Moreover, Dollar Shave Club offers a huge range of products, an attractive shipping box that contains self-grooming goodies, and all at a “handsome” discount.
Also, they have done an excellent job conveying why their users should pay attention to the brand and open their wallets to make a purchase and subscribe.
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Grammarly, Example #2
I’m sure you have already been using Grammarly.
This software integrates with Microsoft Word and Google Chrome.
You can scan your documents and the AI-powered tool will detect spelling and grammar errors, comma splices, poor word usage, and plagiarism.
Now let’s consider the VP they offer:
What product or service is the company selling? This service promises to main your writing great and helps to improve your writing be simple.
Moreover, your writing is hence clear and concise.
What is the end Benefit? Grammarly strives to help you to compose bold and clear writing that is free of errors using the power of machine learning, or AI.
The Target Audience? The target audience of Grammarly is writers and editors of all kinds that can benefit from it.
Offers that make it Unique and Different? There are a number of spell-checkers out there.
There are even apps that can help to improve your writing.
However, Grammarly ties all the benefits together to deliver a comprehensive editing software that makes your writing unique and stands out.
As an added benefit, it also integrates with Microsoft Word, Microsoft Outlook, Google Chrome, Google Docs, and more.
Furthermore, the value proposition can be further amplified by all five-start receives that the brand receives.
This is displayed underneath the button to further entice you to use it.
Talk about social proof?
HotJar, Example #3
HotJar is a heat mapping and behavior tracking software. Moreover, it helps you to understand how your users behave on your site, what they need, and how they feel, fast.
Consider the VP They offer:
What product or service is the company selling? This company provides heat mapping and is a user behavior tracking software.
What is the end Benefit? HeatJar helps to assist markers and others in the related field, like project managers and developers, in order to understand how users are interacting with a website.
The Target Audience? The target audience is project managers, website developers, etc.
Offers that make it Unique and Different? Heat mapping, video recordings, and reports allow you to analyze the behaviors of the users on your website.
Moreover, it provides user surveys and polls.
Furthermore, it tells the visitors exactly what the tool does right from the beginning.
That is heat mapping, visitor session recordings, user surveys, and polls.
It also speaks to the fact that a number of team members can use the tool to make insights and even call out GDPR compliance.
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Freshly, Example 4#
Freshly is a fully-prepared meals app that delivers fresh and provides you with a number of options.
Some of these offers they have are either convenience, nutrition, or foods that you crave.
Now, let’s discuss their VP
What product or service is the company selling? This company provides prepared meal kits.
What is the end Benefit? Freshly cooks and delivered meals that customers only need to heat.
The Target Audience? Freshly is targeting individuals who are looking for cooked meals with less sugar, less processed ingredients, and more nutrients.
Moreover, it is for anyone who wants nutritious and a variety of foods to choose from.
Offers that make it Unique and Different? This app lets you choose from over a range of 30 meals with natural ingredients, delivered at your doorstep.
Moreover, there is also an opt-out option and the possibility to cancel specific weeks or at any time, as compared to being locked in for months.
Additionally, they communicate in simple, helpful visuals and icons that outline the process of using the service in a simple way.
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Nail your Brand’s VP
It is important to nail a unique value proposition if you want to convert a customer and maintain their loyalty.
Moreover, there are a few steps to take when starting the brainstorming and research process for the perfect value proposition for your brand.
What your customers do, their region, what they search for, and common pain points can all help you to make a unique value proposition. To attract most customers and gain a competitive advantage, you need to clearly define your customers and how your offers can solve their problems.
Do not forget to add visuals to increase the ease of communication between your brand and the target audience. To boost your VP and gain market share, conduct market research, and test your website elements regularly. This will help you to determine which message resonates with your target audience.