Value Proposition — What Is It? How to Identify What It Is for Your Business?

As a business, you must be focused on sales to some extent. Sure, it’s a nice idea that having the “perfect” product or service will attract customers, but there still needs to be a way to get your message out to the masses. In other words, how do you let people know they should be buying from you and not someone else? This is partially the role of your value proposition. 

What is a Value Proposition?

A value proposition is a brief statement that communicates to your potential customers the particular benefits they’ll get by choosing your business. Instead of simply laying out the features and benefits of your product or service, your value proposition should be customer-focused. You should target your value proposition so it clearly addresses your target audience’s pain points and the ways your business can solve their problems. 

Why Your Business Needs One

Like your logo or website, your value proposition is one of the first things people experience when they become aware of your brand. Unfortunately, consumers’ attention spans have become increasingly short, especially when it comes to online material. This opening pitch is a short and clear way to make a connection with your audience quickly. 

Your business’s value proposition communicates three essential things to a potential customer: 

Relevance

Customers need and want to know how your product or service can solve their problems or make their lives better. You can capture their attention and get them interested in your business with a value proposition that is relevant to their interests. 

Distinction

Your value proposition also tells customers why they should purchase from your business over someone else’s. What makes you distinct that would appeal to your target audience?

Value

Finally, you can talk about what makes your product or service valuable. These are specific benefits you can deliver to your customers. 

7 Steps for Identifying Your Business’s Value Proposition

Your business’s value proposition is something you can use on your website, on social media, in person, and in your other digital marketing solutions to make a solid first impression on potential customers. But not just any statement will do; it needs to be effective. Here are some steps for identifying and creating your business’s value proposition. 

1. Identify Your Customer’s Main Problem.

Before developing your product or service, you should have the research on hand that clearly highlights your target audience’s main problem. If you are unsure about this, ask your salespeople or customers themselves. 

2. List All the Benefits of Your Product or Service.

Next, list all the benefits your product or service provides. These should be concise, simple benefits that focus on your customer’s needs. Identify one or two primary benefits you can use in your value proposition. 

3. Describe What Makes These Benefits Valuable. 

You’ll also want to add a statement explaining why the benefits you list should matter to your customer. In other words, what makes them valuable?

4. Determine How the Value Solves the Buyer’s Problem. 

Next, align the value you provide with your buyer’s problem. If there isn’t a connection, you may need to return to the prior steps. 

5. Differentiate Your Business Among Others in Your Industry. 

Your value proposition should also be unique so potential customers can see how your business stands out from its competitors. For example, do you offer value or services your competitors don’t?

6. Create a Value Proposition That Ties These Elements Together. 

Combine all of the above steps to create a compelling value proposition for your business. Here are several examples:

• FedEx — “Manage Your Home Deliveries: Sending and receiving packages is convenient and safe for individuals who want to ship ideas and innovations across the globe.”
• Dollar Shave Club — “A great shave for a few bucks a month. No commitment. No fees. No BS.”
• Airbnb — “Airbnb exists to create a world where anyone can belong anywhere, providing healthy travel that is local, authentic, diverse, inclusive and sustainable.”

7. Use and Test Your Value Proposition in Your Marketing. 

Once you have a value proposition, you can use it in your marketing strategies. Make sure you track and test your results so you can make any appropriate adjustments. 

Get Help Developing Your Business’s Value Proposition

While these are excellent tips for identifying your business’s value proposition, maybe you need some guidance to get it right. Too Darn Loud Marketing specializes in helping businesses throughout the United States get the assistance and results they need. 

Our team of seasoned professionals offers results-driven digital marketing solutions that help your business get found and chosen by its target audience. We customize our recommendations to meet your particular needs and goals so you only apply the strategies designed to produce the best possible results. 

Give us a call today at (800) 649-1764 or contact us online to schedule a free initial consultation and website evaluation.