Why should a customer buy your product instead of a competitor’s? What does your service offer that someone else does not? How does your service improve your customer’s life? These are some of the questions that must be answered in a project value proposition if you want to win the attention of a potential customer.
Making a value proposition seems a very simple task, but sometimes a project does not end up convincing our audience, so if you want to learn how to formulate it in the best way for your product or service to be selected keep reading because today we will teach you how to formulate a value proposition.
What is a value proposition
A value proposition is a business strategy to define the most outstanding aspects of a product or service, it has the objective of convincing a customer. In other words, it is the way to present in a concise and clear way all the advantages of our product, especially those that our competitors can’t offer and that soon become the value proposition, which makes you stand out from the competition.
It sounds simple, and at the same time it seems only a sales technique, but the truth is that to formulate it you must go much further, because it will make sense until we define all its details. A value proposition knows the customer and his needs, and therefore knows how the product or service can help satisfy them.
How to create a value proposition
If you can answer the question “What unique benefit do I offer?” in a simple and concise way then you already have your value proposition, but if you can’t do it, or you are not sure if this answer will convince your customers, don’t worry because here we will help you to solve all these doubts with the following tips to formulate a value proposition.
Know your customers
Remember that the maxim here is that your product or service will help satisfy the needs of your audience, so start there. Start with research to get to know your audience. If you have used a strategy such as a customer journey map then you will already have important data such as: what they need and what they are looking for when they make a purchase.
When you have well identified the needs and preferences of your customers, you will have a solid start to begin to formulate a proposal focused on solving their needs.
Know your competitors
The next step is to know what you are doing better or what you are doing differently from your competitors. Of course, you won’t be able to answer this question until you study your competition in detail.
Compare your products and services with those of your competitors in aspects such as: quality, durability, style, you can even investigate if they have sustainable practices or if they are self-designed products. Don’t just focus on price because many customers don’t mind paying more for better quality or a more original product.
Evaluate your product
Once you have the answers to the previous questions, the best thing to do is to evaluate your product or service to determine what characteristics the customer is looking for.
You should also compare this information with that of your competitors to highlight and make it clear why you are better. This exercise can even help you to improve the quality of your products or make small changes that will help you to position them better.
Define the target
Of all the features and advantages offered by your brand or product, choose one, the one you consider most important. You will dedicate more effort to this feature, this will be the core of your value proposition. You will be able to use the rest, but not in a leading role.
Announce your proposal
Maybe you are preparing a project to sell to a special customer or a group of customers, if this is the case try to put all the information you have retrieved in a clear and concise way, so that your customers do not get lost in too much information.
However, value propositions can be made for a more general group of customers, and in this case they are announced publicly. Currently, the best way to do this is through our website.
So if you have a clear and concise enough value proposition, and you think it can be an excellent letter of introduction, then do not hesitate to write it on your website, this will help you to generate curiosity to more potential customers.
Elements of a value proposition
Although there is no standard structure for writing a value proposition, we can say that every value proposition should have at least the following elements:
- Title: this can be a word or expression that summarizes the proposal and sounds powerful.
- Introductory paragraph: in which you briefly explain what you are going to offer and to whom you are going to offer it.
- Answer the question: Why should I be interested in your brand? Here you should clearly explain what the advantages are and how your product will help you, this should not take more than two or three paragraphs.
- Graphic elements: these are optional, but they help a lot, especially if you want to make comparisons or statistics. You can add images or graphs.
Mistakes when writing a value proposition for your project
When we create this proposal, we can make some mistakes that can leave our project out of our client’s decision. Here we tell you what they are, so you can avoid them.
One of the most common mistakes is to confuse the proposal with a slogan or a tagline. Although they have something to do and their objective is also to sell, slogans and taglines are not a value proposition, because it is much more than that, since their formulation involves more detail and research, remember that many times slogans or slogans tend to exaggerate some characteristics or are formulated with the sole purpose of making them sound good.
Unclear text. Another of the most common mistakes is to make a long and unclear proposal, where the benefits do not stand out enough. As we have said, a value proposition has to convince your customer or even investors to buy your product, but imagine that you deliver a document full of data, unclear and without much order; most likely, after reviewing them, they will not show a genuine interest, and may not even realize the benefits you have announced.
So, at all times remember that clarity is very important: separate the important points or use a different typography to highlight the benefits, write a short and well segmented text so as not to overwhelm your reader.
Not personalizing the value proposition. This is a very common mistake made by companies that plan to sell the product to more than one customer, and that is, to present the same project with the same value proposition to all their customers or use the same one with other products.
It doesn’t matter if your customers have similar needs, writing customized projects will help you better connect with each customer and guarantee a sale.
Bad-mouthing the competition. The fourth mistake marketing teams often make is that in order to highlight a company’s service, they end up devoting more space and time to the competition’s mistakes. This can bore your client, because they probably already know about these mistakes and if they are paying attention to you, it is because they want to know about you and how you are going to help them.
Why a value proposition is important
The most important and obvious benefit is that you can generate more sales, or you can close them faster, because the project will have what is necessary for the client to decide to purchase your offer.
However, making an effort to create this type of proposal will help you improve engagement with your customers, which will help you achieve more sales in the future. In addition, it is a way to measure your strengths and be reviewing the quality of your products.
Making a value proposition in a project puts into perspective what are the qualities you are interested in achieving, it also helps to convince customers to buy it, so it is a necessary aspect if you want to secure a sale, but tell us what other features should have a value proposition.