5 Essentials to Define Your Company’s Value Proposition
To attract more customers, your company needs a quality value proposition. A value proposition is a short statement that ultimately compels a potential client to choose your product or service. The goal is to appeal to your target customers and explain how your company is better at solving their core problems rather than your competition. You can think of this as your business’s elevator pitch: concise and convincing.
With these five essential parts you can have a successful value proposition to propel your business forward:
1. Explain why your product or service is better than your competitors. Highlight how your company solves the customer’s problems. Make sure you custom-fit this to meet the specific needs of your target clients.
2. Use simple language. Your value proposition should be easy to understand so that any potential client can relate to it.
3. Be specific and offer tangible benefits. Don’t just say “we’re the best” — explain the real benefits of choosing your company. Your value proposition should not be a catch phrase.
4. What makes you unique: What’s the “value added” to your customers? For example, this could be free shipping, expertise in your field, global presence, guarantees included, lower prices, or better quality products. Whatever it is, be sure to highlight it.
5. Have a main phrase that catches attention and really sums up what your product/business is and what it does. Don’t be ambiguous with the opening statement. Instead, specifically mention your customers’ problem and your company’s solution up front. You may even offer a solution to a problem the customers didn’t even realize they had.
Remember, while it may be tempting, never use a fill-in-the-blank formula to define your value proposition. This will make you as cookie cutter as everyone else. From start to finish your value proposition should convince the reader that you offer a unique solution to their problem and urge them to take action as soon as possible.
Once you develop your value proposition, share it with everyone in your company. Each employee should understand it well enough to be able to explain it in 60 seconds or less. (Note that if they can’t, it may need a revision.)
Finally, put your value proposition to action. You would be amazed at how many businesses don’t engage with what they propose and instead find themselves floundering. Always use your value proposition as your touchstone. If you ever question why a customer should buy from you or how you promise to deliver, your value proposition will clarify it for you.