Fundamentals of a Strong Value Proposition

Marketers aim to nurture leads and convert prospects into buyers while increasing the lifetime value of each relationship. Ultimately, marketing is a process of providing ongoing education, inspiration, connection, encouragement, purpose, and resolve -- leading to “yes.”

A foundational communication tool underpinning this process is the value proposition. A value proposition clearly states how your enterprise stands out in the market. A strong value proposition describes your offering, why your solution is best, and how you will deliver on your promise.

Fundamentals of a Value Proposition

[What you offer ideal prospects] + [what problem do you solve?] + [in what distinct way or value compared to the competition?] + [with what proof you’ll deliver on this promise?].

Many online worksheets, templates, webinars, and workshops focus on developing effective value propositions. Know that a strong value proposition rests on four elements:

1. Distinguishes your value compared to competitors
2. Delivers measurable benefits providing a reason for buyers to act
3. Provides evidence to support its claims
4. Endures the test of time

Crafting an effective value proposition takes concerted thought and effort. Before you sit down to do that hard work, consider the benefits of this essential statement.

A strong value proposition helps you in your market.

A well-crafted value proposition:

Helps you cut through the hype. This is a concise message communicating to your consumer the ultimate reason to buy from or partner with your enterprise.

Differentiates your product or services. An effective value proposition clearly identifies the ways your enterprise is distinct.

Speaks to your ideal buyer. A value proposition helps you talk to the right people rather than all the people possible.

A strong value proposition also helps you internally. A thoughtfully developed value proposition:

Enhances your understanding of the competitive landscape. To position yourself as unique, you’ll need to do thorough research on your competitors and their offerings.

Rallies your team around the same goal. Having your team members understand the value proposition helps them achieve common goals.

Fosters efficiency. Understanding your customers’ views of you and your product can build confidence. This helps you second-guess your efforts less.

Test your value proposition with landing pages, A/B testing, and simple sales calls. Not connecting with your target market? It’s time to reframe your value proposition.

Sources:

• Value Proposition Development: https://www.marketingexperiments.com/blog/research-topics/landing-page-optimization-research-topics/value-proposition-development.html
• What is Your Value Proposition? - https://www.petersandeen.com/what-is-your-value-proposition/
• Forbes, Why Value Propositions are Important (and How to Create Them) - https://www.forbes.com/forbes/welcome/
• Defining the Value Proposition for your Startup - https://www.thelistinc.com/blog/defining-the-value-proposition-for-your-startup/