In this Insight, we\u2019ll look at: <\/p>\n\n\n\n
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- Why a clear value proposition is essential<\/li>\n\n\n\n
- What goes into writing a strong value proposition<\/li>\n\n\n\n
- A step-by-step approach to developing your own<\/li>\n\n\n\n
- Winning value proposition optimization tests<\/li>\n\n\n\n
- Examples to help get you started<\/li>\n<\/ul>\n\n\n\n
<\/p>\n\n\n\n
Why Is It Important to Have a Clear Value Proposition?<\/h2>\n\n\n\n
The value proposition is the first thing that people on your website direct their attention towards when deciding if they need what you\u2019re selling. If your target audience doesn\u2019t fully understand the value that you can provide for them, there\u2019s no reason for them to stay on your site. <\/p>\n\n\n"If your audience doesn\u2019t clearly understand the value of your product or service offering, your conversion rate is going to suffer" <\/a><\/span>Share on X<\/a><\/span>\n\n\n
A poorly executed (or completely absent) value proposition can be one of the biggest hits to your conversion rate. You know the value in your company\u2019s offering, but explaining that to someone that knows nothing about you can be much more difficult than you\u2019d expect. If it helps to visualize it, the value of your product comes down to a relatively simple equation: <\/p>\n\n\n\n
![\"equation](\"https:\/\/thegood.com\/wp-content\/uploads\/image2-9.png\")
<\/figure>\n\n\n\nThe more informative and concise you can make your value proposition, the better your site will be at converting new visitors. If the perceived cost of your product outweighs the perceived benefit, the likelihood that your ideal customer will pay for your products is slim. <\/p>\n\n\n\n
What Goes into a Strong Value Proposition?<\/h2>\n\n\n\n
Look at your unique selling proposition (USP) to aid in developing your value proposition. If you can clearly describe what makes your company unique, you\u2019ll be better equipped to explain to your customers why they should choose you over the competition. <\/p>\n\n\n\n
What do you do better than your competition? Do a competitive analysis of similar brands in your industry to identify their weaknesses. Even if you\u2019re operating in a saturated market, there has to be something of value you can provide your customers with that sets you apart from others in your market. <\/p>\n\n\n\n
Consider what experiences your audience values the most. If you offer competitive pricing, mention that. If you have free two-day shipping for all orders over a certain price, definitely<\/em> mention that. Identify the value-adds that motivate your target audience to purchase and highlight them in your value proposition. <\/p>\n\n\n\n
Your value proposition should not<\/em><\/strong> be interpreted as a slogan or positioning statement. Saying that your business is the \u201c#1 provider of [insert product here]\u201d is great if it\u2019s true, but it won\u2019t help people understand the value of your offering. <\/p>\n\n\n\n
It\u2019s good to be concise with your value proposition, but don\u2019t be so brief that you leave out what\u2019s really important. <\/p>\n\n\n\n
How Do You Write a Winning Value Proposition? (Step-by-Step)<\/h2>\n\n\n\n
Writing a great value proposition is tricky, so we broke it down into three simple steps to help guide you through the process.
<\/p>\n\n\n\nStep 1: Determine the needs of your target audience.<\/strong><\/p>\n\n\n\n
Writing a strong value proposition will be nearly impossible if you don\u2019t have a clear understanding of the needs your customers are seeking to fulfill. Communicate with your customers (through surveys or online forums) to help reveal any latent needs that you can capitalize on.<\/p>\n\n\n\n
Here are some questions you should be asking about your target audience:<\/p>\n\n\n\n
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- What are your customers\u2019 current priorities? Lowest price? Best customer service?<\/li>\n\n\n\n
- Are there groups of people in your customer base that experience the same pain points?<\/li>\n<\/ul>\n\n\n\n
Step 2: Identify your unique offering.<\/strong><\/p>\n\n\n\n
What\u2019s at the center of everything that you do? Look to your company\u2019s mission statement and core values<\/a> to help identify this. After you have a solid understanding of your customers\u2019 needs and what differentiates your business from others, it\u2019s time to establish the solution that you\u2019re offering.<\/p>\n\n\n\n
Here are some questions you should be asking about your business:<\/p>\n\n\n\n
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- How is your product a solution to your customers\u2019 pain points? <\/li>\n\n\n\n
- What makes your product\/service unique?<\/li>\n\n\n\n
- Why should your customers buy from you instead of your competition?<\/li>\n<\/ul>\n\n\n\n