The Value of a Value Prop - Part 2

 

INTRODUCTION

Everyone in business – and in marketing especially – knows that you need to have a value proposition (aka, value prop). But yet, no one really seems to know why, it’s just one of those things that if you’re in business, you’re supposed to have.

What’s worse, many marketers don’t know what a value prop should include or how to develop one.

In Part 1 of this blog we discussed what a value proposition is and why you need one. In Part 2 of this blog, we’ll explain how to quickly and easily craft an effective value proposition.

HOW TO DEVELOP AN EFFECTIVE VALUE PROP

How do I develop a value prop that isn’t just a restatement of other marketing materials?

While there are many ways you can go about developing a value prop, it basically boils down to a few simple steps:

STEP 1

The first and most important thing to remember when developing a value proposition is that a value prop is NOT a sales pitch. This is critical, because too many marketers don’t understand that fact. You’re not trying to sell a customer on anything through the value prop. All you’re trying to accomplish is to generate interest in the buyer.

STEP 2

Next you need to gather information on the following and make certain you understand it:

 

• What your product does
• What the customer problem is that your product solves
• What the value of your product is to your customer
• What makes your product different/better than the competition
• Why a customer should buy your product over the competition

This is the minimum amount of information you need to begin developing a value prop. However, the more in-depth knowledge you have about this information, the better you’ll be able to develop the value prop.

STEP 3

Once you’ve gathered the above information, then the value prop development process actually begins. The easiest way to start is by writing short, informative sentences that encapsulate the above information. As you begin writing these statements, be sure to use a strong, active voice in the sentences, not a passive voice.

Write down as many of these sentences as you can, remembering that at this point, the main thing you want to accomplish is to distill the information into sentences. In effect, this is a brainstorming exercise based on what you know about your product, your customers, and your competition.

Don’t begin judging or editing the sentences yet, that will come in the next step. Right now you just want to begin crafting them.

STEP 4

After you’ve created the initial sentences, then begin the editing process. This is where the information you’ve gathered begins taking shape into the actual value proposition. As you begin editing, remember that the value prop you’re developing should be a concise distillation of the most critical information and ideas that you want to communicate to your customers, so that it gives them a reason to want to learn more.

Begin editing by reviewing the statements to determine what information is redundant or unclear, which statements are too long or too wordy, etc. Doing this helps you begin to rethink the statements you’ve written to determine how you can revise or restate them, making them much more crisp, clear and concise. As you go through that process, you should also begin combining and refining the statements, as that is what you will use to create the value proposition.

While many marketers think that this process is a one-and-done type of process, the reality is that this process will take some time; you won’t create the perfect value prop after only one try. Developing a value prop is an iterative process, so it will likely take several attempts.

Repeat these steps as often as is necessary until you’ve developed a tight, well-written value prop that provides your customer with a reason to want to learn more about your product.

SUMMARY

That’s really all there is to it. Developing a value prop is an iterative process, it’s not something that you can just create once and be done.

Remember, that in order to be effective, a value prop needs to be:

• Focused on the customer outcome, not the product/service/solution
• Use a strong, active voice, not a weak, passive voice
• Crisp, clear, concise
• Provable, supportable (if you can’t quantitatively prove it, with quantifiable data, then don’t use it; anecdotal evidence is useless)
• Tells a story, but in just a few sentences
• Clearly defines your advantage over the competition
• Appeals to the customer’s strongest needs and business drivers

 

 

© 2021 – Richard Hatheway / Catalyst Strategic Marketing

 

 

#marketing #valueprop #valueproposition

The Value of a Value Prop - Part 1

 

INTRODUCTION

Everyone in business – and in marketing especially – knows that you need to have a value proposition (aka, value prop). But yet, no one really seems to know why; it’s just one of those things that if you’re in business, you’re supposed to have.

This blog will explain what a value prop is and why you need one.

WHAT IS A VALUE PROP

Let’s begin by defining what a value proposition really is.

A value proposition is simply a statement that clearly and concisely summarizes the value that your product or solution provides to the end customer. That’s it. The value prop length may be from one to several sentences long, but is typically not longer than 2-4 sentences. The value prop may also include a concise summary of the problems the product, service or solution solves or the issues it addresses. The purpose of the value prop is to make the customer interested in finding out more information about the product, service or solution.

That’s straightforward and simple, right?

Sadly, no. Too many times a value prop comes across as nothing more than a poorly worded, passively voiced version of existing marketing materials. Instead of providing customers with a clearly stated reason to find out more about your product, you’ve done the exact opposite – you’ve proven that your business is just like all the other companies out there that really don’t get it. What’s even worse is that instead of trying to understand what the customer really needs, you’re trying to tell them what you think they want.

That’s why most value props are junk and don’t work. Instead of understanding the customer’s perspective so that you provide them with an incentive to learn more, most value props are just trying to push a product.

WHY A VALUE PROP IS CRITICAL

In the post-COVID-19 world, many businesses now work remotely, so your value proposition is often the first piece of information about your company or product that a customer encounters. This is because in today’s digital-first world, buyers typically turn to the Internet first when doing research. As your value proposition may include some of the search terms a potential buyer may use, your value prop may actually show up in the search results.

This means your value prop has to be compelling. It has to be clear. It has to be concise. It has to motivate a buyer to want to learn more about your product.

However, if your value prop is not written effectively, it won’t do any of that and you’ve lost an opportunity for a potential sale.

That’s why you need a value prop. That’s why your value prop needs to be well-written.

That’s the value of your value prop.

SUMMARY

A value proposition is often your introduction to a customer, which is the primary reason you need one. As such, it needs to be clear, engaging, and focused on the customer needs, not the product.

In Part 2 of this blog, we’ll discuss How to Develop an Effective Value Prop.

 

 

© 2021 – Richard Hatheway / Catalyst Strategic Marketing

 

#marketing #valueprop #valueproposition