May 30, 2016 By: frogdog

Discovering Your Company's Value Proposition

A value proposition provides value to your business by focusing on business goals and assisting in the development of marketing concepts and the targeting of customers with the right messaging.

How valuable is your company? Not your company’s annual revenue or net worth, but the value that your customers place on your company’s product or service. How does your product solve your customer’s problems? What benefits does it deliver? And why should customers choose your product over those of your competitors?

Answers to these questions will help define your company’s value proposition—a promise of value to be delivered and a belief from the customer that value will be delivered and experienced. While many companies may know the answers to these questions and may use them in decision making, a surprising number of companies do not have an official value proposition that guides their marketing, sales, and customer relations.

The value of a value proposition

Because it is so often used incorrectly or ineffectively, the value proposition is undervalued. However, many digital marketing experts claim it to be the number 1 key to determining whether customers will stay on your website. And many C-suite leaders are listening. Value propositions are valuable in several ways:

  • Keeps the focus on achieving business goals
  • Helps develop the most persuasive marketing concepts
  • Provides a foundation for developing relevant and engaging marketing messaging
  • Avoids wasting resources on marketing that targets the wrong customer
  • Continually reminds you how your customers view you and your product
  • Gives you confidence

What is a value proposition?

It’s not your company’s mission or vision statement and it’s not the company slogan or tagline. While many think a value proposition and a positioning statement are the same thing, the positioning statement is actually a subset of the value proposition.

A value proposition is more than just a statement. It’s usually a block of text with a strong headline often supported with an illustration or visual graphic. The headline should be attention grabbing and focused on the end benefit your product offers. The body of the copy should include a specific explanation of your product, for whom it’s useful and why, as well as the top three-to-four key features or benefits. The visual element helps to reinforce the message whether its photos of the product or a graph of industry rank (of course, only if you’re at the top).

Because it should be used in a variety of ways and should be easily understood by employees and customers, a good value proposition will

  • State how the product is better than the competitor’s product
  • Highlight the product’s key features or benefits
  • Avoid business jargon and highfalutin language
  • Include a relevant image
  • Be easily understood and quickly read

Effective use of value propositions

Before any value proposition is put into play, it should be tested with the target customer. While surveys or focus groups may work, try A/B testing on an email campaign or run a couple of different online advertisements and see which one gets the most clicks.

Once you’ve tested and finalized your value proposition, you’re ready to put it to use. Harness its power to develop or refine your positioning statement, business goals, and sales team’s elevator pitch. Develop strong messages and relevant copy for your website that will grab the attention of your target customer. Update all advertising campaigns and sales collateral to call attention to your product’s key benefits and features.

Do you have a strong value proposition to accompany your marketing strategy? Don’t have either? That’s where FrogDog can help you. Contact us.

Image courtesy of FreeDigitalPhotos.net/Master isolated images

Posted: May 30, 2016
Updated: Oct 08, 2019
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