A value proposition is much more than a description of your products or services. It’s a statement of intent. It’s a promise. It tells customers why they should choose your solution over one of your competitor’s by highlighting the unique value only you can provide.
What’s more, a clear and compelling value proposition supports your wider inbound marketing efforts. It ensures you’re correctly aligned to the needs of your customers so you can attract the right people.
Value propositions explained
At its core, your value proposition provides a succinct summary of the tangible benefits or results customers can expect when they use your products or services. It focuses on the features that help you stand out from the crowd and the unique value you provide.
That’s what a value proposition is, but it’s equally important to clarify what it isn’t.
A value proposition isn’t a slogan, incentive, or mission statement. These tend to be more high-level or conceptual. It should quickly get to the heart of the challenge you want to help your buyers solve and the reasons why your solution is the best choice to do that.
Why is it important to have a strong value proposition?
Some businesses use their value proposition as an internal resource to help align their marketing efforts. Others as a customer-facing document that highlights the unique features of their offering. However you use it, a clear and compelling value proposition can benefit your business.
First and foremost, it gives you a better understanding of your customers and how your solution meets their needs. It also helps you highlight the key features that differentiate you from other solutions on the market and articulate the value you provide.
More than that, your value proposition can:
Support your sales and marketing efforts
Ensure consistency and clarity of messaging across your brand
Help you attract relevant leads
Improve customer engagement
A strong value proposition can be the difference between closing a sale and losing a customer to the competition. If you’re unable to demonstrate value to your customers, why should they place value in your offering? If you’re unable to tell prospects why they should choose you over someone else, why would they?
So, what does a good proposition look like?
A good value proposition should:
Address a specific need among your customers.
Be clear and easy to understand.
Explain how customers can overcome their business challenges using your solution.
Highlight the features that differentiate you from your competitors.
Quality over price
Competition is on the rise in every industry and businesses are increasingly undercutting their competitors to stay ahead. It's natural to get frustrated when a competitor wins business from you by lowering their prices. You might be tempted to respond in kind, but this is an unsustainable and potentially irreversible strategy.
In the eyes of customers, price cuts are permanent. Once you reduce your price, you'll struggle to increase it again. A strong value proposition can help you retain healthy margins and maintain quality in the face of price-cutting competition. Be bold. Be vocal. Show prospects why they should choose you over one of your competitors – even if that means paying more.