How to write a value proposition for your small business

Key takeaways

• Avalue propositioncan help you stand out by delivering a unique promise to yourtarget audience
• Strong value propositionscan attract your ideal customers, leading to more sales and increased client satisfaction
• Identify yourtarget audiencebefore crafting your promise, then get feedback from customers on yourvalue propto ensure it resonates

As asmall business owner, you’re confident your product or service can meet yourtarget audience’s needs. But without an effective pitch, yourpotential customerswon’t know that. People depend on you to provide apowerful value propositionthat clarifies yourcompetitive advantage—the reasons a customer should choose you over the competition.

So, what is avalue proposition? Here’s what you need to know about this valuable statement and how to craft one of your own.

What is avalue proposition?

Avalue proposition(often called “value prop”for short) is a promise to solve acustomer’s problemor improve their life. This clear, concise, and compelling statement summarizes the benefits you provide—and it should appeal directly to yourtarget audience.

Agood value propositionincludes a headline and subhead that identify:

• A problem that affects your target market and how you’ll solve it
• Key benefitsor features you’ll provide with your product or service
• Your competitive advantage, or why yourideal customershould choose you over your competitors

On your website and online platforms, a value prop should be front and center. Avalue propositionis usually the first block of text you see when visiting a company’shomepageorlanding page. It acts as a selling pointto get visitors interested and engaged.

Beyond your website, yourvalue propositioncan also serve as a talking point in pitch conversations and help you create effective print or数字营销campaigns.

Unique value proposition examples

As you prepare to write your own value proposition, draw inspiration from successful valueproposition examples. Reading real-worldcopywritingfrom professionalmarketerscan help you hone your own statement.

Evernote

Headline:Tame your work, organize your life.

Subhead:Remember everything and tackle any project with your notes, tasks, and schedule all in one place.

As a software company that helps creatives and business owners who struggle with organization,Evernote‘svalue propositionclearly illustrates how it makes life easier for customers. The product helps you get organized, tackle large workloads, and avoid missed deadlines. The company also differentiates itself by identifying some specific needs that it can streamline:note taking, task management, and scheduling.

AppleWatch Series 6

Headline:The future of health is on your wrist.

Subhead:Measure your blood oxygen level with a revolutionary sensor and app. Take an ECG anytime, anywhere. See your fitness metrics at a glance with the enhanced Always-On Retina display. WithAppleWatch Series 6 on your wrist, a healthier, more active, more connected life is within reach.

This is agreat value proposition examplebecause it sets customer expectations for a specific product. Thevalue propincludes a variety of unique features to differentiate the product and illustrate its value. But ultimately, it’s still focused on one key need: health management.

How to craft acompelling value proposition

Anysmall business ownercan create astrong value propositionto attract their target market. Start with these three steps to create yourvalue prop.

1. Understand yourtarget customer

Before you write avalue proposition, take time to identify yourtarget audience—the customers who your brand, product, or service can best help. Create a profile for yourideal customerwith characteristics such as:

• Demographic information, includingage range,marital status, andincome level
• Geographic information, such as specific cities or zip codes
• Psychographicinformation, such as interests, values, and lifestyles
• Behavioral information, such as spending habits, brand loyalty, and previous product ratings

Understanding your target market will help you focus yourvalue propositionon the people who matter: your customers.

2. Answer crucial questions

Your value proposition should address crucial questions about your business. As you brainstorm, start by writing down answers to the following:

• What problem are you solving?
• How do you solve that problem?
• What benefit does your company provide to customers?
• What does your company do better than your competitors?

Rearrange your answers to each question until you create the strongestvalue propositionpossible for yourtarget audience. Then, refine the statement by breaking it down into a catchy headline (usually asingle sentenceor phrase) and a 1-3 sentence subhead. Always aim for clarity and simplicity.

3. Gather customer feedback

As you finalize yourvalue proposition, gather feedback from members of yourtarget market, including both your currentcustomer baseand potential clients. Host a focus group, send surveys, or chat with shoppers in-person to compare reactions to multiplevalue propsand better understand the value they’re seeking.

3key benefitsof agreat value proposition

Creating acustomer value propositionis one of the best waysto promote your business. It helps you hone yourmessaging, providing clarity about what you do and who you serve. Specifickey benefits include:

1. Betterdifferentiation

Your competitors may offer similar—and sometimes better—features andpricing. But astrong value propositionhelps you emphasize the incalculable value of yourcompany’s products, services, or brand experience. Maybe it’s your compelling brand story. Maybe it’s a unique perspective you offer on a niche industry.These differentiators will capture the attention of yourtarget marketwhile they’re still shopping around.

2. Higherconversion rates

Aconversion rateis the percentage of your website visitors who complete a specific goal, like signing up for a consultation or purchasing a product. When you warm up potential customers with a value prop, they are more likely to convert. Clearly stating your unique value helps buyers make faster decisions and decreases the chances that they’ll leave your site before taking action.

3. Increased customer satisfaction

Yourcompany’s value propositioncan also help you grow your business by increasing satisfaction with your brand across yourcustomer base.

A greatvalue propsets expectations for what customers will get out of your service so clients can determine if they’re a good fit for your solution. For example, if you’re an auto mechanic who offers best-in-class service for Japanese cars, you’re not looking for clients with BMWs or Audis. With a clear value prop, you can be confident that any new leads will fit yourtarget market, meaning you can adequately address theirpain points.

Comparing value propositionswith other branding elements

Value propositions carry a unique purpose when you’re building a brand. However, they’re often confused for or replaced with other brand elements. Make sure the value proposition you’ve developed differs from mission statements, taglines, and positioning statements.

• Mission statements:Value propositionsandmission statementsboth define what you provide for clients, butvalue propsare more specific. They tell shoppers what problem you can solve right now, and in turn, drive sales, while mission statements broadly define your company’s purpose and build long-term loyalty.
• Taglines:Ataglineis a short phrase that helps people identify your brand, but it doesn’t convey your value. Although a memorable part of Nike’s brand identity,catchphrase“Just do it” doesn’t tell you much about how the company helpspotential customers.
• Positioning statements:Positioning statementsstate the factors that differentiate you from competitors, whilevalue propsinclude a wide range of benefits for your target audience. Apositioning statementmight be part of yourvalue proposition, but it doesn’t fulfill the entire purpose of avalue prop.For example,WordPress.com‘s website header is actually apositioning statement: “Welcome to the world’s most popular website builder.”

Sell more with astrong value proposition

So, what is avalue proposition? It’s a promise that explains how you’ll solve a problem in your customers’ lives—and do so better than your competitors. The more compelling yourvalue propositionis to yourtarget audience, the more likely they’ll convert to regular customers

To get more out of yourvalue prop,use search engineoptimization(SEO)to draw your target market to your website.