Wondering what is a value proposition? Let’s face it, your value proposition is the first thing customers will notice in your brand. This is the reason why you should have an excellent value proposition. For those who don’t know, the value proposition highlights the benefits of your product or service for users.
According to a survey, only 64% of businesses have created value propositions. If it is done correctly, it can provide an advantage over your rivals. In addition, the prospects will use your value proposition to evaluate you.
However, not many businesses have an effective proposition. According to studies, only 2.2% of businesses have a useful proposition. This is a huge problem because an ineffective value proposition will turn away your potential customers to your competition.
To have a good value proposition, you must understand what value proposition is. In this post, we have talked about the value proposition, so you can have a better understanding.
What is the Value Proposition?
In simple words, the value proposition can be defined as how much a product or service is worth to target audience. It is about telling people what you are offering, the benefits of the product for customers and the reasons why you are a better option.
Creating an effective value proposition is a challenging and daunting task. This is because it must be interesting, unique, and concise. A good value proposition is user-centric, meaning the focus is on what the customers require rather than what the company offers.
Characteristics of A Great Value Proposition
Here are some of the essential characteristics of the value proposition.
- Clearly describe what you do.
- The proposition should be short, clear, and easy to understand.
- Benefits of your product or service.
- Why should the user buy from you and not from your competitors?
- Make it convenient for people to search you online.
- Explain how your product or service will solve the problem of customers.
- Be prominent on your website.
Since the proposition should be concise, fitting these characteristics in a statement is challenging. This is one of the reasons why many marketers struggle when making a good value proposition. Marketers struggle to create an effective proposition because:
- The company didn’t express it clearly
- They haven’t identified one
- They are not testing the value proposition.
Benefits of Having a Great Value Proposition
Here are some of the benefits of establishing a value proposition.
- It will help convey to the potential customers what your product or service offers.
- A good value proposition will make it easy for the customers to differentiate between you and your competitors.
- Through an effective proposition, you can improve customer engagement and understanding.
- It will inform your target audience about why your company is a perfect choice and why your product is the perfect option.
Thinking about how to have an effective proposition? Here is a value proposition guide through which you can establish a concise, distinct, and user-centric proposition. If you have any tips, feel free to share in the comments below.