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