A business, you have got to attract your customers for all the right reasons. You will have to promise values and come up with strategies that can help you deliver them as well. Once successful, the prospect will return with more projects.
This is the reason why businesses today are so excited to create their own value propositions. They want to make their brands stand out from the noise by providing ‘an offer their prospects can’t refuse.’
In this post, we are going in-depth to understand how you can create a unique and compelling value proposition that will keep bringing back your customers. So, let’s cut to the chase and get started!
What is a Value Proposition?
We’ll not play with words here because we want to quickly jump to the practical part of the article. But, it’s important to understand what value proposition really is. So, to be precise, a value proposition statement offers your business with relevancy, quantified value, and differentiation.
Relevancy, because your customers want to know how you solve their problems. Quantified value, because they want to know what specific value is being delivered. And differentiation, because it’s important for the customer to know why they should not buy from your competitors.
A value proposition is something, that when read, provides the customer with all the reasons why it should do business with you. Now that you know what a value proposition is, let’s make one!
Steps to Create a Compelling Value Proposition in 2020
Here’s how you can help your business create a value proposition that sells.
1. Know the Elements You Need
Before you start writing your value proposition, you must first figure out who you are writing for i.e. the target audience. It is important to have all the right data you need to answer one simple question – ‘Why should you be hired?’ It’s not a simple question, though.
So, the important elements you will need to put together to create a value proposition statement are:
A. Desire
You need to know what your customer gets the most excited about when doing business with someone. What is it that your target customer is more attracted to? While you are at it, you will come up with challenges, opportunities, you will find your strengths and weaknesses.
That’s right. You will have to conduct a full-scale SWOT analysis to identify the factors you can leverage and things you need to work on. Next, you will need to figure out what exactly makes your product or service exclusive.
B. Exclusivity
What is it that makes your service exclusive? Exclusivity is the answer to the question ‘Why should any customer buy from you?’
So, you can show your exclusivity by displaying achievements or awards, trade secrets or patents, guarantees or exclusive promises, unique process or methodology, popular people in your company, and so on. Once you figure that out, try coupling it with your target customer’s expectations and desires.
C. Credibility
What is it that you bring on the table that your customers should believe what you are saying? This is a very important question because it involves the most crucial factor in business – Trust.
To show credibility, you can make use of social proof, testimonials, warranties you provide, and trust seals.
The more elements you can show to prove your credibility, the more are the chances of getting conversions.
D. Clarity
So, just so you know, your value proposition should not be an essay your customers have to read to know you. It is one compelling, easy-to-understand statement that does its best to persuade your potential customers.
The statement should itself tell what you do and how good you are at it. There should be zero guesswork involved whatsoever.
2. Mix the Elements in Right Proportion
Now that you have a number of useful information available about your services and the target customer, it’s time to choose all the right elements and boil them down to one sentence.
No, we are not saying create just one value proposition statement. We are saying create, let’s say 10 of them. You can choose different combinations of elements and then create 10 value proposition statements which you test against each other.
This is a crucial step of creating a compelling value proposition because it will help you know which statement moves your target audience. How will you do that? Let’s understand.
You can create separate landing pages for each value proposition to run A/B testing. You should start sending the visitors to all the landing pages you have created. Make sure you only use the segment of the audience that is viewing your target audience to run the A/B test.
Keep the tests running until you have strong results for the variations you have devised.
3. Your Value Propositions Should be Data-backed
By now, you have the right value proposition statements in your hand. Let’s say out of the 10 statements, you got strong results for 5. How will you figure out which one of the five statements should show your value proposition?
You can get your answers by conducting user surveys. You must add the right questions in the survey about the value propositions you have mentioned. The questions can be simple and easy to understand.
You should ask the people about what they think about the variations, the variation they liked the most, how well they were able to understand each one of them, if they even believe in the value propositions mentioned.
We highly recommend you to continue testing your value propositions using split-test data and surveys which will further help you implement a data-backed value proposition statement.
Conclusion & Takeaways
There you have it. Creating a value proposition isn’t something that you will accomplish in a few minutes. You must have brainstorming sessions with your team to get to the bottom of this. It will take time and effort, but will provide you great results once you have a perfect value proposition for your business.