Startup leaders often relentlessly pursue their ideas to change the world. To make an enormous impact, you need to connect those bright ideas with your customers’ hopes, needs, and fears.
The value proposition clearly articulates how you solve customer problems better than anyone else.
Your value proposition is critical to competitive advantage, and it’s your strongest impression on customers. They will be willing to sign up and become loyal advocates if you help them increase revenues, reduce expenses, or improve their operations.
Creation
How do you articulate your value proposition effectively?
Be Self-Aware. Start by knowing yourself and your business.
Purpose: Why do you exist?
Vision: What future do you want to create?
Values: What principles guide your behavior?
Be Relevant. Identify your customers’ main problems.
Qualified: What makes customers ready to receive your solution?
Ready: What do they need right now?
Alignment: Do those needs relate to your products or services?
Be Impactful. Connect your business to your customers’ needs.
Value: What makes your solution meaningful to the customer?
Uniqueness: What differentiates you from other providers?
Edge: Why should customers buy from you now?
Once you have some ideas through this process, you can wordsmith the value proposition. Overall, the value proposition should be unique, clear, and concise. Don’t get too fancy. Your language can be something other than aspirational, emotional, or laden with jargon. Rather, it should be impactful, direct, and precise.
You should consider these components of your value proposition:
Headline: The end benefit to the customer.
Explanation: What do you offer, to whom, and why.
Points: Main benefits and results for your customers and the impact on their lives.
Visual: Video or graphic to support your message.
You can adapt the above across various media and use A/B testing to improve each element.
Your value proposition should differentiate you from the rest of the industry in a meaningful way. It’s more than a slogan, tagline, or some elegant way to position yourself in the market.
The emphasis of your value proposition is on the customer, not on you. The ultimate benefit is shifting the pricing conversation from cost to benefit.
“Price is what you pay.
Value is what you get.”
– Warren Buffet
Communication
When communicating your business to others, keep in mind the following issues:
Words and gimmicks are useless to customers. Slogans, taglines, and phrases like “here’s an offer you can’t refuse” often mean nothing to them.
The hype (“we’re the best!”) is best saved for your team meetings. For customers, demonstrate your value instead of screaming it.
A grand mission or detailed description of your business—offices, talent, growth metrics—also do not typically matter to customers.
Descriptions of your product features, incredible service, expertise, and credentials from the outset are more about you than the customer. Avoid starting a discussion or presentation with these. Instead, lead with insights about them.
Your value proposition should inform and drive communication. It’s your way of explaining the true meaning to customers so they (and others) can understand your offering.
Relevance
As your industry changes and your ideal customers evolve, you want to revisit your value proposition to ensure it remains relevant and persuasive. Review it at least quarterly or as part of marketing strategy meetings and confirm your assumptions by asking clients and prospects what they think.
While Amazon started as an online marketplace for books, it evolved to offer many products and services. Throughout its evolution, its value proposition remained consistent: to provide low prices, fast delivery, and a wide selection; however, the value proposition of its web services is “safe, secure access to highly available, reliable, and durable IT resources.” Both value propositions are relevant and persuasive to their target audiences.
Key Takeaway: To best present your value to customers, explain persuasively how you solve their problems better than anyone else.
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Photo by Myriams-Fotos who can be found here.
Rely on A-B Testing to improve each element (headline, description, and visuals).
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