2020 Guide To An Effective Value Proposition

Your value proposition is your companies primary unique identifier highlights why prospects should work with your company instead of your competitors.

In this guide, we will talk about value propositions. You will learn what this business term is and how it can be the difference between profits or loses. You will also learn how to create an effective value proposition, pushing your business results into “green.”

What Is Value Proposition?

Your value proposition is your companies primary unique identifier. The best value proposition examples highlight those one or two key difference that separates you from all other competitors. Effective value propositions are what clearly distinguishes your business from competitors, highlights why working with your company is the wise decision.

Defining your value proposition is essential for any business. If you know what separates you from the rest, that will be much more easier to sell. Your value proposition is your key advantage, and it is what makes you and your company unique. So even if you are operating in the most saturated industry in the world, that value proposition is going to make you special, making all competitors irrelevant.

Understanding Value Proposition

There are two sides that need to understand value propositions: you, and your potential customers.

First, it is of critical importance for you to know what is your value proposition. If you don’t, you can’t expect your audience and potential customers to choose your products or your company in general. Therefore, the first step is figuring out what it is, if you haven’t done already.

However, while it matters that you know, it is crucial that your potential customers know that too. If they don’t understand that either means:

• You don’t know what your value proposition is.
• You do know, but you are failing to communicate the message to your audience.
• You do know, and you are communicating, but the audience doesn’t feel like that value proposition separates you from the competition (which means you chose incorrectly).

So, ideally, you will know what your value proposition is, and you will focus on that in your marketing and sales efforts. That will result in your potential buyers being aware of the proposition. If that is the case, they will have no doubts when choosing your products.

In fact, communicating your value proposition examples is one of the best marketing tactics you can have, as it works on its own. If your customers understand what separates you from the rest, they will always choose you, if that value proposition is what they are after. That makes creating a value proposition one of the most cost-effective marketing moves you can make.

The Big “Why”

The value proposition is not just about the services you offer and the products you sell, no. It is that “why” behind everything, a much deeper reason. It is the “cause” that is driving your business.

Your value proposition is the unique way you solve other people’s problems as no one else does. When people that have those kinds of difficulties hear about your value proposition, their decision becomes automatic. You are the one to help, and no one else will do it better.

So, a value proposition is something much deeper than a brand’s visual identity.

While having a slogan and a logo is excellent, it is usually not the thing that makes or breaks the deal. Sure, a generic logo might make you look unprofessional, but that’s about it. You can have the best logo in the world, but without a clear value proposition, you won’t be able to close sales more consistently.

The Big “How”

The value proposition will also answer the question, “How your products and services help other people solve their problems?” – This is a huge question, as it is exactly what customers want to hear. If you are able to tell the answer to this question, you are the one in their eyes, and they will immediately hire you to keep the promise and solve it.

Of course, this has to be something specific. Going too broad, and being too vague won’t make the deal happen. Pick something “niche” that will solve a particular pain point or operational problem for the specific type of customer. You want to be the go-to problem solver, not just a random Jack of all trades.

A Promise Of Value

Your value proposition is the promise you make to potential customers and needs to align with your B2B marketing strategy in order to write or refine your value proposition. It is that deep message that you send, that goes beyond the product itself. Yes, the customer will buy the product/service, but the reason why they have selected your company is your value proposition.

They know that each of your products/services has that proposition at its core.

But, because it is a promise of value, that value proposition is also what makes the deal happen, financially. Because they know exactly what they get for the money paid, customers are able to compare your product and services with others with a similar price.

That is what makes value proposition so special—they can compare prices, but the value proposition is unique. If you do it right and make yourself stand out from the crowd, the customer will always choose your product, even if it is the most expensive one they can afford.

How To Create And Communicate A Value Proposition?

1. Find The ONE Problem

While it may seem like your company offers many services and sells multiple products, when coining your value proposition, it should all be brought down to ONE problem that you solve. The value proposition you write should tackle that one issue in a specific way, making your company unique, and giving future customers an obvious reason why you are the right one to choose.

That means the problem should be obvious, but also critical at the same time. The customer knows what they want to be solved, but lack your knowledge, tools and expertise to solve it. If you manage to address their problem directly in your value proposition, they will become an instant customer as soon as they read it. And if you do manage to tackle the problem successfully, they will become your lifelong fan.

It is essential to choose a problem worth solving. It has to be a particular pain point that is troubling your customers at a given moment. You should be the fireman that douses the flame, a savior that prevents the problem from causing more issues.

While it doesn’t have to be a genuinely life-threatening situation, it should at least be urgent. So, make sure the problem your value proposition addresses to solve is a real one and a big one. That will make it much more effective. Of course, you need to make sure you are able to deliver on that promise.

2. Find The ONE Buyer

While it might seem like a good idea to attract the broadest buyer base possible, that can backfire. Being too broad will make you into an above-mentioned Jack of all trades, and people are not looking for that. Instead, they are looking for specialists that can solve their unique problems.

In other words, they feel like their problem is unique, even if it isn’t, and your job is to understand them. Create a value proposition that helps them solve that particular problem. If your customers get the feeling like you are addressing them directly, they will have no second thoughts when clicking that buy button, or grabbing the phone to call you.

3. Identifying The Benefits Your Business Has

If you are having trouble answering the “why” and “how” questions, you can take a slightly different approach. You want to list all the benefits your company brings to the table and all the reasons why your customers end up choosing you.

If you are already running a business, go through testimonials and feedback you got from previous customers. Read through the emails, comments, and messages and notice if anything repeats. If, for example, many praise you for doing the work well before the deadline, or that you are extremely polite and caring, that will objectively speak about your professionalism. Try to find as many of those benefits and difference-makers and write them all in one place.

Then it is time to trim the list. Do it again, and again, you want only a few key differences to remain. While you do the trimming, focus on the “why” and “how” questions. You want those reasons and benefits that remain to answer them the best. It will also give you an obvious ONE problem your company is best at solving.

4. Finding The Unique Way You Solve Buyer Problems

So, you have figured out who the target buyer is, and also what is their major problem, not we have to address the “why” again, finding what is so unique about the type of service you provide.

This can be anything from the methods you do work, to the technologies you use, all the way to your experience or prior results you achieved. Ideally, this will be a combination of all of this but written in a concise way that clearly shows you are the one for the job, and there’s no one else in the world to do it better.

Here, your competition is a great inspiration. Each one of you tries to do things differently, adding a slight tweak to their trade. Your job is to explain to your potential customers why you are the one to do it better, or faster, or at a better price. You want to communicate that unique value you bring to the table, clearly separating you from the rest of the herd, which is your whole industry.

5. Focus On Benefits, Not Features

This one is one of the oldest tricks in the books, but it works. By focusing on the benefits instead of features, you are able to show people how your products and services can improve their life. This speaks to a much broader audience.

For example, if you state a feature of your new blender, telling people how it has XXX motor strength, that is only good for the most technical customer. But, if you describe how it will leave no crumbs when making a shake, it is a whole different experience. Anyone who made shakes that are half-solid can relate to that.

The same goes for describing your services. Instead of focusing on the tools and techniques you use, it is a better idea to focus on results and changes people will see and feel once you’ve done the job.

6. Offer Proof

While targeting a particular customer and the exact problem that bothers them is excellent, you want to have proof that backs up your problem-solving claims. Testimonials, case studies, or concrete numbers showing the benefits of your products all work and will show you are a real expert in the field.

If you are just starting out, and you don’t have any prior work, stating your diplomas, or the expertise of your team members might be an option. Or, you can tell people about the cause behind the company, and what is the unique thing that motivated you to start it.

And never lie that you are experienced, if you aren’t yet. In fact, stating that you are a young and energetic team that is eager to prove themselves and position among the more experienced competition can be an element of a value proposition that can drive the buyers in.

7. Keep It Clean, Simple And Concise

No matter how sophisticated your tools and working methods are, or how big your team is, or how many degrees you have, your value proposition should be as short, simple, and clean as possible.

In fact, your whole website copy should have only the necessary information, but the value proposition should be the prime example of concise. Its goal is to make that lasting first impression, to tell people what they came to hear, how you are the one to solve their burning problem.

But remember, value propositions are not slogans. They shouldn’t be too short and vague. Concise only means no fluff, but you still need to explain to customers what they get from you they won’t get from your competitors.

Elements Of Value Proposition

Every business should have its own value proposition, which is why it is impossible to make a one-size-fits-all solution or a blueprint for making one. But, while there are no strict recipes, you will notice that most value proposition have some common elements which we will discuss now. You don’t have to use all of them for your company, but reading through them will give you a better idea of what might work in your case.

1. Headline

The headline is the most obvious value proposition element, and in fact, often times the only element there is. Because many value propositions only have a headline, a single sentence, they are often confused with slogans.

DuckDuckGo has a very effective one-line value proposition: “The search engine that doesn’t track you.” When you analyze it, you can see they have addressed everything in a single sentence, stating what clearly separates them from the competition. Most search engines track user behavior, and if you are a privacy-conscious person, you will be glad to know that DDG doesn’t.

2. A Compelling Subheading

A subheading is not mandatory, but it is often necessary if you have a lot of competition doing similar things to what you do. It will go a bit deeper than the headline, but it still needs to be concise and to the point. The headline and the subheading should work together, explaining the same concept.

The heading needs to be the direct punch that attracts attention, and the subheading should be the follow up that puts the closure, explaining how you tackle the issue your potential customer faces.

Opera, for example, has “Fast, secure, easy-to-use browser” as their headline. But, they added a subheading below it stating: “Opera browser is everything you need to do more on the web. Now with a built-in ad blocker.”

While their headline addresses the key benefits, that is not enough to separate them from the competition, which is why their subheading completes the proposition. It explains how their browser lets you do MORE on the web than others, but also has an ad-blocker most competitors don’t.

3. Links To Prove Your Positions

A value proposition is essentially making a bold promise. You are telling your customers you are the right person/company to solve their issues. But, you better back up those claims, as anyone can say that.

That’s why it is imperative to link to proofs. This can be anything from a case study, to your awards page, or testimonials and user reviews customers left. But pick only one, and link one word in your value proposition to it. That will show people you are not just bragging without any facts to back up your claims.

4. Bullet Points And Media

While it is not advisable for everyone, you can consider going a bit more in-depth with your value proposition. While we stated how you should focus on benefits and not features, sometimes the main benefit is the feature.

For example, Buggati Chiron is currently the fastest car in the world, and stating 304 mph as the top speed is an obvious advantage that separates them from the rest.

It is also an option to add a short video or a picture as a part of your value proposition. But, be careful with that, as you don’t want to dilute the message. You have a very limited time to make that initial impression, so make sure to use it to make something impactful and lasting.

How To Know If Your Value Proposition Works?

Like we said above, it is one thing to have and understand your value proposition, it is something entirely different to communicate it to your potential customers successfully. But, because the value proposition isn’t anything strict and easily measurable, it is hard to get it right the first time you create it.

That’s why it is important to test things. Create multiple value propositions, and A/B test them, seeing which works best. Conversions and click-through rates will be an indicator of which one did better. Just make sure you are not changing too many other things at once. If changes do happen, you won’t be able to tell which one caused which improvement because you made so many tweaks at once.

Value Proposition Can Matter In-office Too

While this article primarily focuses on the customer value proposition, this term is often used inside the company, to describe the employee value proposition.

Employee value proposition matters when hiring new people. By clearly stating it, you will attract the right candidates. If you clearly say what is expected from them and what your company is all about, you will ensure only those who share the same value apply.

That will not only make the whole hiring process more comfortable and much more streamlined; it will also ensure that your new colleagues already know what fundamental values are. That will not only make them blend in sooner, but also help them when communicating with customers, and stating the customer value proposition.

Actionable Value Proposition Takeaways

A value proposition is an often neglected part of marketing. In today’s digital era, the market is the whole world. While that seems great at first glance, as it gives you an endless stream of potential customers, it also means you face an endless stream of potential competitors looking to hijack those customers from you.

But, if you define your value proposition and clearly communicate it to the targeted customer base, you make your business automatically stand out from the crowd.

So make sure you do your best when trying to write down the value proposition for your business. While it is not something set in stone, and it can change, it shouldn’t be taken lightly, as it is what leaves that initial impression about your business as a whole.