The Power of Value Proposition in Marketing Your Business (Part 2)

In part 1 of this 3-part series about value proposition (VP) for businesses, we covered the concept and its importance in marketing. This article will provide a step-by-step guide on how to create a VP that works for your business.

Step 1: Understand your customers

An effective VP must address what your customers truly need to solve their problems. You can obtain insights into your customers’ expectations for the products or services you offer via market research or personal survey.

Step 2: Identify the basics

Your VP statement must cover 3 areas. First, how does your product or service help solve a problem. Second, what benefits do your business offer customers. Third, how is your business different from your competitors. Ensure that your information reflects reality.

Step 3: Answer the right questions

Analyse the information collected in steps 1 & 2. A detailed comparison should help you discover how your products and services can truly meet your customers’ real needs. For example, a coin laundry owner offering cost-efficient self-service laundry services will appeal to college students or working adults who seek a cheap and fast way to do their laundry.

Step 4: Connect with your audience

A well-written VP is easy to understand and conveys a clear message. So, it is best to avoid industry jargon and use everyday language that your target customers can easily comprehend and remember.

Step 5: The right elements

A good structure makes a clear and convincing VP. Good VP includes a headline which boldly states the end-benefit for your customers. This is followed by a sub-headline or short paragraph that further explains your headline. You may also use bullet points for more clarity. A good visual is crucial to capture the attention of your audience. Last but not least is the call-to-action to prompt your audience to reach out to you.

Creating a compelling VP requires a thorough understanding of your customers’ needs and how your business can fulfil those needs better than your competitors.