A brand’s value proposition is simple, it is a phrase used to communicate the benefits or value of buying from your brand. A company can have one value proposition or many across different products or services.
Regardless of how many you have, it’s a slogan or tagline meant to appeal to specific customers and gives them an idea of what they can expect from purchasing your product or service. It can also define what makes you different from the competition and why a customer should choose your business.
A good value proposition can go a long way in convincing users to interact with your company and convey the benefits you offer them. To create an effective value proposition you need to focus on a few key elements, follow the steps to create them, and evaluate your value proposition with your users.
In this article, we will cover the definition of a value proposition, why they matter, how to create them, and how you can evaluate yours in minutes with your target audience.
What is a Brand Value Proposition?
A value proposition is a statement from a brand that defines what they offer to the target customers to differentiate itself from the competition. The goal is to communicate the most important benefits of doing business with the company and why a user should choose you over another option.
Why do Value Propositions Matter?
A good value proposition is important for an organization because it defines what the company can give the customers and how they can benefit from its offerings. It helps differentiate the company from the competition and communicates the value of choosing to do business with them. A value proposition is one of the most important conversion factors for a business.
When you are considering your tagline as a part of your marketing strategy, it should be specific to the business, offerings, and appeal to certain customers. A value proposition is a great way to market your products or services and can help focus on what makes you different.
To create a great slogan, identify the most effective statement and you will create a value proposition that users can connect with.
Value Proposition vs Mission Statement
Many times a value proposition is confused with a mission statement. A mission statement is meant to display your core values, explain why your business exists, the overall goal, and what you do.
Not everyone and honestly most users won’t care about your mission statement and core values. They want to know the benefits and what’s in it for them. They will find value in how the product improves their lives, solves their problems, or gives them something they wouldn’t otherwise have.
However, there is a link between a brand promise and a value proposition. The objective of any company is to create a product that gives the target audience equal or greater value with each interaction or purchase.
With consistency, an organization can turn the value expectation into a brand promise, and eventually, a brand promise can be a part of the value proposition.
What Goes into a Good Value Proposition?
Every value proposition should address the needs of the target audience. You should have some idea of those needs based on your offerings, brand strategy, and marketing research. Your goal is to identify a few needs and convey that in your brand tagline.
A brand’s value proposition should be based on how your target users define your value, not always how you perceive your value. A company that offers lower prices than the competition might not want to push that benefit.
Instead, the company could speak to the customers, their needs, and communicate value to the customer. A lot of customers might still shop with them because of low prices but this method allows them to differentiate themselves from other low-cost options.
The best value propositions don’t meet a customer’s expectations; they exceed them. There is an element of excitement that comes with an example like Walmart’s “Save money. Live better.” Saving money meets expectations while living better exceeds them.
Steps to Creating a Value Proposition
A planned approach yields better results than a random choice, just like with any other aspect of your marketing strategy. Many brands develop their value proposition quickly, without any process or research.
Creativity is great but a framework in your strategy helps identify the benefits, target customers, meaning, expectations, and avoids choosing a value proposition that the brand wants.
Here are a few of the different ways to create a brand value proposition, different approaches, and how you might be able to use each to create your own tagline.
Be Direct and Clear
A strong value proposition pinpoints the advantages that are most likely to resonate with your target audience and explains them in a clear and memorable way. Depending on your business, your customers, and your offerings, they can take a lot of different forms.
A good value proposition is about one sentence, it should be concise but display value to the customer. A good example comes from Kodak, “Share Moments, Share Life.” This value proposition is simple, but it effectively communicates benefits and value to the audience.
Potential customers understand that they can capture the moment and share life’s experiences with others. When you use a Kodak camera you will capture moments and share your life through their products.
Focus on being brief and using simple, understandable words that your audience can connect with.
It’s not always necessary for value propositions to be overtly direct; they can also show ambition and a strong desire for growth. Demonstrating the ability of both you and your consumers to strive for improvement.
A great example of an aspirational value proposition is Nike’s “Just do it” Nike understands that motivation is a barrier to fitness goals and advancement in athletics. Their tagline is a value proposition and a call to action, they tell the customer to get out there and do it, being motivational and showing a desire to be better.
Instead of directly mentioning a benefit, characteristic, or functioning of their brand, this value proposition adopts a more creative stance and allows customers to imagine the positive things that others would have to say about them as a result of their brand preference.
Some businesses decide to develop a value proposition that highlights one aspect of their business. The Rice Krispies cereal’s “Snap! Crackle! Pop!” is an excellent example of this.
When milk is added, the cereal makes those noises, highlighting a special function they provide that is obvious to the customer. This type of value proposition can come in a lot of different forms but always highlights a feature of the product, service, or overall business. Another example of this is the value proposition for Samsung’s Galaxy z fold, “Get ready to unfold your world”. This value proposition highlights the feature of the folding touchscreen phone. Highlighting the biggest differentiator of the product.
How to Evaluate Your Value Proposition in Minutes
Once you have done your research and identified the most important benefits of your business, and the needs of your target audience, you should evaluate it with the users. If you test your value proposition before you launch it, you will avoid mistakes, understand audience perception, and get feedback that helps you improve the tagline.
Testing a brand’s value proposition is much easier than it was in the past, there is no need for a week or month-long A/B test, or the need to spend thousands just to find the value proposition that works best. With remote, unmoderated testing platforms like Poll the People or PickFu, you can compare value proposition variations and allow real users that represent your target audience to evaluate your tagline.
When you decide to test with a user testing platform all you have to do is have your value proposition variation, input them into the testing template, identify the audience you need responses from, and launch. You will immediately get responses and in just a few minutes you can have hundreds of actionable responses from the audience. You will receive both quantitative and qualitative feedback that can help you identify issues, optimize taglines, and make sure you are going live with the most effective value proposition.
A value proposition can have a significant impact on purchase intent, perceived brand value, brand equity, and awareness.
Your brand depends on your value proposition, thus it’s critical to test and refine them for the greatest outcomes. The difference between getting your next client and adding to the bounce rate can be a strong value proposition and it doesn’t have to be difficult to develop a strong value proposition. You can differentiate yourself from the competition by precisely articulating and testing what makes you special in minutes.
A brand’s value is key to engaging with users and showing them how your business can improve their life, solve their problems, or fill their needs. It is a statement from a brand that defines what they offer and differentiates the business from the competition. The goal is to communicate the value of doing business with the company and explain why a user should care.
Several elements go into a strong value proposition, when crafting yours make sure to be clear, concise, direct, and focus on the benefits of your business.
The best way to evaluate and optimize a value proposition is to test it with real users. A remote user testing platform allows you to quickly and easily test your value proposition before going live. You will get hundreds of responses in minutes, and the best platforms work for businesses on a budget and large enterprises.
Be sure to do research, communicate with your team, and focus on the key benefits of doing business with your company. With these tips, you will be well on your way to creating a powerful value proposition that helps to convert more users.