Discover in the following article what a Value Proposition is, what its benefits are and all the necessary elements to put together one that is efficient and attracts more customers to your company.
Carrying out a new venture necessarily involves planning an effective marketing strategy. For this, it is essential to work on a Value Proposition.
Although it is a fairly simple strategic tool, it can generate great engagement with your potential clients. To have positive results, it must be well built and stand out from the competition.
Below you will find out what a Value Proposition is, what its characteristics are, and how to achieve, through it, engagement with people interested in your brand.
Value Proposition: Definition
A Value Proposition is a communication resource that is used to transmit, clearly and objectively, what your business does and what are the important contributions it makes to those who are part of its community.
In other words, what is sought is to show through direct, balanced, and creative content what you offer and why your customers should choose you to meet their needs.
All major brands have a well-defined Value Proposition that, in general, is fundamentally related to their highlights. These definitions help to position companies and effectively convey the solutions they can provide with their products and services.
Some basic rules will allow you to develop good positioning and obtain good results, which will translate into more opportunities to increase your sales.
Benefits of having a Value Proposition
Learn below what is the importance of a Value Proposition, what elements it should contain, and how to develop your strategy for your company to grow in the market.
Among the many contributions that this tool can give to your business, we will highlight the following:
How to build your Value Proposition
Now that you know the advantages of defining a Value Proposition, it’s time to analyze what type of content you should include in it. Take into account the following elements to start yours.
Mission, Vision, Courage!
Today, consumers prefer brands that have values and are committed to them. That is why, beyond offering a certain product or service, it is necessary to develop an idea that transcends and allows long-term thinking. Why does your business exist? The answer to this question will be the vision of your company. On the other hand, to shape the identity of your brand you must also establish its mission and values. In other words, what do you want to achieve and how? Defining the values of your company will help you connect from another place with your target audience. Companies that do not have their defined values miss out on great growth opportunities.
“Defining the values of your company will help you connect from another place with your target audience.”
Make your Differential
To differentiate yourself from your competition, you must observe it and study its position in the market. Remember that you must make your brand stand out, but without belittling the other participants in the field.
People will want to know why they should choose your business over others. Here we return to one of the pillars of the Value Proposition: reinforcing how your company can solve the problems of potential customers better and faster.
All the advantages you offer should be highlighted: they are what differentiate you from the rest and the reasons why they will choose you.
Recognize your Buyer Persona
The Value Proposition must be based on the profile of your ideal buyer and must be designed so that new people are encouraged to try your product. Make sure you speak to your clients. To achieve this you must define your Buyer Persona. This archetype is made based on demographic and psychological data that help you create a very accurate image of your potential customer, and then project actions to capture their attention and achieve more sales.
Characteristics of the Value Proposals
A Value Proposition can help you materialize your marketing strategy for each of the segments of your target audience. In this way, you will be able to condense the price, service, and image of a certain product into a single combination.
You have to understand that what you want to show is what a brand does differently and, above all, better than the competition. The proposal has to offer solutions and satisfy the needs of the clients.
A company can have multiple value propositions; They can be related to each other or be segmented according to different customer targets.
“What you want to show is what a brand does in a different and better way than the competition.”
Let’s see below what are the fundamental parameters that every Value Proposition must have to function effectively:
If your Value Proposition meets all these points, we can say that it is on the right track. But there is still much to learn.
Tips for your Value Proposition
If you want to make an effective Value Proposition, you must follow a standard structure that allows a practical reading so that the consumer gets all the information they need.
Discover below all the basic elements for a good Value Proposition, which will enrich it and give relevance to its content.
The title should provide information about the activity of your company in two sentences. To do this, powerful words are often used to capture the reader’s attention.
In the subtitle, the proposal should be detailed in more depth. You can add more specific information about your business. In general, three lines are enough to summarize what you do, who it is aimed at, and what you transcend at.
The bullet points should attract the reader and stand out in the reading. Examples include price, warranty, or free home delivery. If your product has any of these or other benefits, make sure they stand out.
Images are of vital importance for all your marketing campaigns. They should always emphasize the Value Proposition and illustrate the written content: they have to reinforce the main message.
Interactive Value Proposition Nowadays, there are different ways of presenting the value of a brand’s product or service; among them, we find interactive websites.
These are web pages in which users can participate and obtain information on the topics that are of interest to them, with specific content for them.
In this type of platform, the user actively participates in the consumer experience and achieves a closer relationship with the brand. You can include the resource of asking questions, whose answers will be valuable data about the needs and preferences of your audience.
Examples of Value Proposition
To illustrate a bit of what is discussed in this article, we share here three Value Proposals of large companies such as Coca-Cola, Netflix, and Uber. Find out what these brands did to position themselves as the first in their respective markets.
A great example of a Value Proposition is the one shown by Coca-Cola. This company never promotes its drinks in the foreground: all its commercials revolve around the idea of ”happiness”, the main value they use in the company.
Netflix has managed to evolve in search of improving customer access to audiovisual content. It is the main company within the subscription model and its Value Proposition includes accessible prices and original and personalized content for each user.
Today the platform has more than 140 million users around the world.
Uber is another example of how the sharing economy can power a business. The great idea of this company was to facilitate the connection and exchange between two people with different needs: travel and work.
The user can not only contact a driver quickly but also does not need to have cash, since they can pay through the application.
Its success is due to the careful study of the needs of modern society: population growth and mobility difficulties in cities.
Your Value Proposition? A fast, easy, and low-cost service. The user can know how much the trip is going to cost before requesting it.
On the other hand, Uber also creates opportunities for people who need work, with the advantage of being able to manage their schedules.
“A Value Proposition can generate great commitment with your potential clients.”
Without a doubt, to develop your business it is essential to create one or more Value Proposals according to your products, services, and, above all, according to the different audiences you are targeting.
Being clear about your proposal will help you develop better quality content and renew ideas to connect with your potential customers.