How To Developing Your Value Proposition

When it comes to your branding journey, you will need a value proposition that you can use for your products as part of your marketing efforts. In our previous articles on the branding journey, we discussed defining your brand, finding your target market segment, and several other topics. The value proposition is a topic related to the two aforementioned topics that can help you be more successful in those processes.

What is a Value Proposition?

When you have a marketing statement to show your customers why they should be getting your products or services, you have yourself a good value proposition.

You can imagine a value proposition as something that can convince your target market segments to select your brand over a competitor’s by stressing on the benefits and additional positive effects that your customers can get from you. Ideally, your value proposition should be concise and appeal to the purchasing intents of your customers.

What A Value Proposition Contains

A value proposition is not a slogan, a catchphrase, or a positioning statement. Typically, a value proposition contains 4 elements. There’s usually some text and visuals combined together.

  • Headline: Use this as an attention-grabber. Your headline needs to be short and you may mention the product or service that you are offering to your customers. It’s more important to include the end results of what your customers can receive from you.
  • Sub-Headline: You can either use a short one-liner here or insert a short paragraph made up of about 2 to 3 sentences. Here, you should be more specific on what you can offer to your customers. Include information such as who your products are for and why it’s beneficial for them.
  • Bullet Points: Some readers might skip your sub-headlines, which is why you should have about 3 bullet points listing the key benefits or main features of your products and services. These points should be short and concise – more like phrases rather than sentences.
  • Visuals: Your value propositions will just be plain and uninteresting if you don’t include any visuals with it. Images can relay a message to your customers faster than words. They can get an idea of what your value proposition will be about if you show your product or something that reinforces the message that you are sending.

Why Every Business Needs a Value Proposition & Why It’s So Important

Without a value proposition, companies cannot compete effectively with one another. A value proposition can act as an ‘economic moat’ that separates your business from another. Don’t look down on the importance of a value proposition even if you are just a new company starting up! The less known your company is, the better the value proposition you will need to pull in your customers.

Defining a Value Proposition for your Business

The task of developing your own value proposition may be daunting, but it’s not too complex. Generally speaking, there are only 4 steps to creating your own value proposition.

Listing All Your Product/ Services Benefits

You can start by creating a list of all the benefits that your customers can gain from using your products or services that you are offering to your customers. You can later narrow down from the list and choose several key benefits to include inside your value proposition.

Identifying the Product’s Values Toward your Customers

Link the benefits to the values that they bring to your customers. If you market skincare products, the benefit could be ‘fairer skin’ or ‘acne-free complexion’, but your products’ values to your customers lean more towards the values your customer perceive your offerings to be. They might think that they are getting a very good deal when they purchase from you, or they might see your products as overpriced.

Getting to Know Your Customers to Position Your Products & Services

Identify and understand your target market segment. What do you offer to them? You can position your brand and business better once you identify who your customers are. That way, you will be able to let them know what you are offering to them, what problem you are solving, etc.

Research Your Competition

Your customers have heard it all before. Best quality, lowest prices, guaranteed results and so many more promises so easily thrown about by businesses. How are you different from your competitor? Why should they purchase from you and not your competitors? You will need to research who your competitors are so that you can differentiate yourself from your competitors in your value proposition.

Writing a Unique Value Proposition & Marketing Statements

Your value proposition can be quite consistent across your industry. There’s only that many variations that you can make if you are in a certain business line, but there are still ways that you can make yours unique! Here’s how.

Make it Simple for Your Readers to Understand

Ensure that your message is clear and easy to understand. Your message should make it clear to your customers about what you are offering to whom and why. Don’t beat around the bushes!

Communicate the Results Your Customers Will Get

Focus on the specific benefits and advantages that your customers can obtain from using your products or services. What results can they expect at the end of the sales cycle?

Let Them Know Why You are Better

Explain to your customers why your solutions are different from the rest. Stress on why you are better. You can utilize the weaknesses of your competitors’ products and services to appeal to your customers.

A Short, Relatable Statement

Don’t use industrial jargons! You might know that CTR refers to a click-through rate when you are working in the digital marketing industry, but your customers might not. Make sure that your value proposition can be read and understood within a short timeframe.

5 Great Value Proposition Examples from Big Brands

There’s no better way to learn than by looking at great examples. Here are a few that you can refer to, taken by 5 big companies that you are bound to have interacted with at some point.

  • Shopify:  “Shopify is everything you need to sell everywhere.”
  • Hubspot:  “Marketing Software | Stop interrupting. Start connecting.” AND “CRM Software | Close more deals with less work.” AND “Sales Software | Stop cold calling. Start closing.”
  • Uber: “Get there: Your day belongs to you.”
  • PayPal: “Make the most of your money.”
  • Bit.ly: “Shorten. Share. Measure.

With this, you now know how you can create value propositions for your brand. You can also read through other branding-related articles that we have on creating SMART Goals and defining your brand to complete your branding journey!

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