A strong value proposition separates you from your competition and makes your business stand out in your customers’ eyes. So it’s vitally important that you can create one that is clear, compelling and different. In this article we will look at what it is and what it isn’t and guide you through exactly how to build a winning value proposition.
A value proposition explains to your customers why they should do business with you above all the other choices they have out there. In today’s global marketplace when there is so much homogeneity, a unique value proposition (UVP) is vital for success.
It should also position you as someone who can provide the best possible solution for your customers. Don’t rely on statements that you are the cheapest, fastest and best, because so is everyone else. With these words you will just merge into the crowd. A UVP should be short, sweet, grab attention and put you in a class of your own.
Your UVP needs to be more than just a list of benefits. It must be relevant to your customers’ wants, desires, and needs.
When building a bricks and mortar shop, you know the importance of “location, location, location.” And when constructing your proposition, you must focus on “relevance, relevance, relevance.”
The main advantage is that customers will have a neat story to tell their colleagues, starting with the words: “I like x company because….” Simple, clear value propositions spread like wildfire. We know them, and we tell our friends about them.
Here are five ways to keep you focused on what’s most relevant to your target group when creating your value proposition:
How well do you know your customers and prospects? Do you know what keeps them awake at night? Do you know what motivates them? You need to know more than just the demographics like age, gender, income, and education. People tend to make buying decisions on an emotional level. Learn to tap into their emotions.
Know the language your prospects and customers speak. Find out what words they respond to best. If you’re targeting a B2B audience of accounting software users, there is specific terminology they use when discussing how and why they use it in their work processes. Speak their language and you’ll get their attention.
This goes hand-in-hand with point no. 2 above. In addition to using their language, be ultra specific. Anything vague or ambiguous casts doubt in your prospect’s mind. It’s not enough to say you’re the “best in class.” You need to specifically identify how and why you are known as the superior answer to your prospect’s problems.
It’s not enough to know that a customer needs to buy a product or service. You must dig deeper and find out why they desire your particular product. What is it about your product that makes it stand out from the rest on the market? How can you translate that uniqueness into satisfying your customer’s desires?
But not just any testimony. Use customer testimonials from those who are just like your target group. And make sure those testimonials are customer-centric. How did your service or product make their life or business better, easier, or more profitable? Make sure the testimonials use the language that your target audience responds to.
Here’s a strong example:
“Shiny Digital is a specialist SEO company that helps customers within the financial industry to turn their websites into revenue generators, quickly. In fact, we recently helped one of your competitors to increase their website conversion rate by 150%. In year one alone, for every pound they spent with us, they received £500 back.”
Here are the elements that make it so good:
1. The target market is addressed
2. There is a strong benefit in there
3. There is an outcome
4. There are numbers – it is measured
5. It proves value, not just hints at it.
In our training, we often get asked the difference between a value proposition and an elevator pitch.
The Main difference is the value proposition has at its heart one key element – CUSTOMISATION (Rule number 1 about value = value means different things to different people).
Therefore the value proposition, or what you propose for THIS customer, is going to change, frequently. Because, a lot like beauty, “value” is in the eye of the beholder. Value to one target group can be quite different to another group. The better you know your target group, the more you can craft a relevant value proposition that will appeal to them.
Elevator pitches are more “spray and pray” – to be used and said with enthusiasm and pride anytime to anyone to help them understand WHAT you do, and importantly, WHY you do it. Yes, it may contain the value that you bring to the world, but that value will be more generic.
Building a high impact value proposition doesn’t have to be difficult. Follow these 5 simple steps to craft a powerful message about your business that sets you apart from competitors. Craft your value proposition, and then try it out with customers and prospects to see how they react so that you can hone it to perfection!
Once you’ve written your value proposition, run through these points to check you’ve covered everything:
If you need help sharpening your value proposition, we have resources and value selling training programmes that can help you realise a winning sales strategy based on a solid and relevant value proposition. Call one of our experts today for a free consultation.
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