Value propositions are extremely important for companies to attract, and obtain, new consumers.  Any business with a website should focus on creating a unique value proposition that will sell their product or service to consumers upon

What is a Value Proposition?

Value proposition is one of the most essential parts to obtaining new customers for your business. The main objective of this statement is to summarize why a consumer should buy your product or service. While this may seem like a simple task, creating a unique value proposition that is effective, and clear, can be difficult.

This Investopedia article had a great breakdown of what exactly a value proposition should consist of:

“A value proposition is a promise by a company to a customer or consumer segment. It is an easy-to-understand reason why a customer should purchase a product or service from that specific business. A value proposition should be a clear statement that explains how a product solves a pain point, communicates the specifics of its added benefit, and states the reason why it’s better than similar products on the market. The ideal value proposition is concise, and it appeals to a customer’s strongest decision-making drivers”.

Understanding the purpose of a value proposition is the first step, but creating an effective one is the more difficult part.

Creating a Unique Value Proposition

Since your value proposition is going to be one your main marketing strategies, it should be prominent in high-trafficked areas such as your website, blog, or social media.  The statement should be prominently shown, and should be the first thing people see when they visit your page.  This being the case, it is important that you think about your consumer’s perspective.

What Should the Value Proposition Consist Of?

People coming to your site want to know: What is this business? How can it be useful for me? How is it different from their competitors?  Having a bold headline that addresses the first question will be the main statement of your value proposition, as it should communicate your company’s product or services.  You can address the other two questions in sub-headlines, but be sure not to go into too much detail.  People want fast, clear information that gives them instant answers (think 2-3 sentences).  Having an image to convey your product is another great reinforcer as it communicates much faster than words.  Be sure to also refrain from using language that is too formal or technical.  You want a straightforward statement that is easy to understand.

Here’s an example of Hatch’s homepage:

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“We are a gym for businesses” is the main headline and briefly explains what Hatch does, and stands out prominently on the page.  Below, it goes into more detail of Hatch’s services and explains how it can be useful to a potential customer.

If your line of business is extremely competitive, be aware that consumers searching for that specific service will be looking on multiple sites.  Having a value proposition headline that emphasizes what makes you different or better than your competitor is crucial.

Before creating a value proposition that conveys this, you need to think about what people will be comparing.  Most likely it will be prices and specific features of each business.  While it may be difficult to explain why your services or prices are better in just a headline, remember that you can always explain further in the sub-headline or have links to other pages.

What A Value Proposition Should NOT Be

Another thing to remember is that your value proposition is not a slogan or catch-phrase.  For example, McDonald’s catch phrase “I’m Lovin’ It” is not a value proposition.  Even if it one of the most recognizable phrases in the fast-food industry, it does not convey what their products are at all, or differentiates them from their competitors.  The cosmetic line Maybelline, is a well-known brand among women, especially their slogan, “Maybe she’s born with it, maybe it’s Maybelline”.  No matter how catchy this might sound, again it is not a value proposition.  Neither of these examples give consumers an idea of what their products are or how they could be useful.

Examples of Unique Value Propositions

The following sites are great examples of businesses creating a simple, clear value proposition that also communicates their service/product.

AppSumo

Value Proposition: “We promote great products to help you kick ass at work”
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box

Value Proposition: “Your Files On Any Device, From Anywhere”

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Comparity: Insurance Simplified

Value Proposition: “Side-by-side, “apples-to-apples” comparison of your home, auto, and other insurance”

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80/20 (1000 Four Member)

Value Proposition: “Software Applications and Consulting”

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Bad Examples of Value Propositions:

The following examples are of sites that need to improve, or clarify, their value propositions.

Poshmark

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Despite their value proposition being clear and simple, it does not differentiate their services from their competitors.  Having personally used their services in the past, I know that they offer many benefits that make them unique.  However, without displaying these defining services, they are losing potential customers.

Avaya

avaya-example

While their “value proposition” is there, it is barely unique and does not differentiate their services from their competitors.  There is also too much text on the page that will make consumers lose interest.

 

Use these tips and examples will help you create your own unique value proposition.  If you’re still not sure if you’re existing value proposition needs editing, here’s some tips on how to check (from this ConversionXL article):

  • Go back to your site and see if you’re doing a good job explaining what you do and what’s in it for them (without having them to scroll, click or read something for more than 5 seconds).
  • Check your Analytics data and identify the top 20 entry pages to your site. Make sure all of those pages contain a value proposition.
  • State why they should buy from you and not the competition (how you’re better of different).

 

Are there any businesses that have unique value propositions that made you buy their product/service? Comment below!

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