Your company's value proposition is the heart of what sets you apart from the competition. It spells out exactly why someone should choose to buy from you rather than your competitors.
Alright, so how do you write a killer value proposition that'll boost your sales and conversion rates? This article has got you covered! You'll learn what a value proposition is (and what it's not), check out some killer examples of value props we've seen, and pick up some tactics to create your very own amazing value proposition.
Now, you might be thinking: "Isn't my value prop basically the same thing as my slogan?" But nope, not quite. It's pretty easy to mix up your value proposition with other brand assets, like your mission statement, slogan, or tagline. We're gonna clear up those differences for you right here.
What is a value proposition?
A value proposition is a brief statement that tells buyers why they should pick your products or services. It's not just a description of what you offer - it's the unique solution that your business provides and the promise of value that your customers can count on you to deliver.
Your value proposition is a unique identifier for your business. Without it, buyers won't have a reason to purchase what you sell. They may even choose a competitor simply because that business communicates its value proposition clearly in its marketing campaigns and sales process.
Value Proposition vs Mission Statement
Your value proposition is all about what you offer to customers and why they should choose you, while your mission statement outlines the objectives of your organization. While they might overlap in some ways, your value proposition is focused on your products and services, while your mission statement is focused on your goals. Let me give you a couple examples:
Value Proposition: "A super easy CRM platform."
Mission Statement: "To help businesses grow better."
Value Proposition vs Slogan
So, a slogan is a snappy little statement that brands use in their marketing campaigns to promote a specific product. While your value proposition probably wouldn't be used in an ad (at least, not usually), a slogan definitely would be. It's important to keep in mind that a company can have different slogans for different campaigns or products. Let me give you a couple examples from De Beers Group:
Value Proposition: "Beautiful diamonds, stunning designs, breathtaking jewelry."
Slogan: "A diamond is forever."
Value Proposition vs Tagline
Now, a tagline is a brief statement that captures a certain aspect of your brand or business. While your value proposition is more tangible, a tagline can represent a concept or idea that your business embodies. Typically, businesses have just one tagline that's easily recognized and associated with their brand. Check out this example from Apple:
Value Proposition: "The best experiences. Only on Apple."
Tagline: "Think Different."
Value Proposition vs Mission Statement vs Slogan vs Tagline
Let's take a look at Nike as an example of a business that has all four:
Value Proposition: "Customizable performance or lifestyle sneakers with unique colorways and materials."
Mission Statement: "To bring inspiration and innovation to every athlete in the world."
Slogan: "Twice the guts. Double the glory."
Tagline: "Just do it."
TLDR; While your value proposition is crucial for setting you apart from your competitors, it's not the same thing as a slogan, tagline, or mission statement. Those other types of copy are important for building your brand, but customers and employees don't choose you based solely on those elements.
Your value proposition really gets into the nitty-gritty of the problems you're solving for your customers, and why your product or service is the perfect solution.
How to Write a Value Proposition
Identify your customer's main problem
Identify all the benefits your product offers
Describe what makes these benefits valuable
Connect this value to your buyer's problem
Differentiate yourself as the preferred provider of this value
Tactics to Develop an Effective Value Proposition
Conduct research to determine the value proposition of your competitors
Explain the value of your products and services to users
Describe the benefits your ideal customer will experience when they choose your product or service over the competition
Develop a unique value proposition for each buyer persona you serve
Test your value proposition with your audience using various marketing channels
What makes a good value proposition?
Your value proposition should be centered around addressing one primary customer need. This way, your proposition stays straightforward and easy to grasp. By focusing on just one key concept, your audience can easily determine if your product or service is the right fit for them.
Next up, it's important to clearly communicate the specific results your customer can expect from using your product or service. For instance, will it help them save time? If so, provide examples of how. Will it make their workflow more manageable? Consider showcasing a before-and-after workflow diagram. These specific outcomes are crucial elements of your value proposition as they illustrate precisely how your customers will utilize your solution to resolve their issues.
Points of Differentiation
Your potential customers not only consider their own needs when evaluating your business offerings, but also compare them with those of your competitors. Therefore, it's crucial that your value proposition includes specific points of differentiation. These key elements will help your customers understand precisely what sets your company apart from others in the industry.
Compose a Great Value Proposition
There are limited factors that influence a potential customer to become a loyal one, regardless of the industry. Whether your industry has ample opportunities to differentiate (such as retail) or few unique identifiers (such as dairy), a value proposition will help you understand your ideal customer and position your business as the best solution for their needs. Utilize the tactics, tips, and framework provided in this article to craft your unique value proposition.