Imagine planning a big, important party. You’ve dialed in on the perfect theme and spent considerable time and money executing your vision. The décor is on point, the food and entertainment are next level, and the guest list is sure to draw attention. Now imagine completely overlooking the invitations. To your horror, you discover the invite that went out was a generic store bought, fill-in-the blank sort that simply read “Come to my party!” with no other details or information included.
You’d never overlook such an important detail! The invitation is the invitees’ first glimpse of the event and plays a crucial role in their deciding whether to attend. The invitation should be on par with the event and should communicate what a party goer should expect and why they should want to attend.
In business, a value proposition serves a similar function to a party invitation. It is a clear and enticing message that tells consumers what you are offering and why it’s worth choosing.
A value proposition should not be confused with the more goal-oriented mission statement, or with picking a memorable company name, slogan and tagline, all of which are useful tools for advertising. A value proposition serves its own purpose and should include three components: the offering, the value, and the differentiator. It should allow consumers to quickly identify what they’re getting, how it will add value, and how it’s different or better than any other option.
If that sounds like a challenge, the following tips will help you get started.
Know Your Target Customers. This may take some work up front, but having a thorough understanding of who your desired customers are allows you to tailor your language and communication to speak to their unique needs and values. Using the terminology, tone, and messaging style that resonates with your desired audience helps build connections and makes it more likely that your message will be well-received.
Identify the Customers’ Problems. Put yourselves in your customers’ shoes. What are their pain points, challenges, and unmet needs? For example, if you’re in the fitness industry, your customers’ main problem might be more than the desire to be more fit. Perhaps their struggle is motivation, not knowing where to start, the lack of childcare, or finding the time for personal fitness in their busy schedules. Understanding their challenges helps you tailor your value proposition to address those concerns.
Identify Your Solutions. Now that you know who your customer is and what they really need and want, consider how your product or service offers solutions and value. You might start by listing every product or service you offer and describing its primary benefit. Clearly and succinctly explain the specific ways your products and services provide solutions to the problems and challenges facing your customers.
Differentiate from Competitors. Again, your product or service offering should answer a customer’s need, but that isn’t always enough to drive a purchase. Consider how else you can add unique value, especially in comparison to your competitors. Perhaps you offer affordable pricing or payment options, a wider selection, or opportunities to customize a product. Maybe you include additional services when your competitors are charging extra. Returning to the example of a fitness product or service, you might highlight that your training sessions come with customized meal plans, the flexibility in booking appointments, or the variety of free group classes included in a membership.
Craft Your Value Proposition. The best proposition statements say very little about the actual product or service it features. Instead, they focus on the problems they solve and the unique value they offer. There are numerous templates available online to help you in your writing, including these from Geoff Moore, Harvard Business School, Steve Blank, and Hubspot.
In closing, a value proposition is the heart of your marketing message. It is tailored for your targeted customer and rooted in the problems your company aims to solve for them. Taking the time to craft a clear and engaging value proposition helps you forge meaningful connections with your consumers and helps position your company as the perfect, irresistible solution.