The #1 Reason You Need a Value Proposition
Do I Really Need a Value Proposition?
Yes! Of course you need a value proposition.
I would end the blog there, but I’m sure you need more information.
What is a Value Proposition?
A value proposition is a business or marketing statement that a company uses to summarize why a consumer should purchase a product or service. This statement convinces a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings will. Companies use this statement on their landing page to target customers who will benefit most from using the company’s products. This helps maintain a competitive advantage.
Your value proposition should very explicitly answer two major questions:
- What is the value of your product/service? I.e., what problems do you solve, and what are the benefits of your product/service?
- Why should I buy from you and not your competitors?
Your value proposition should NOT be:
- Simply a list of your products/services
- A basic marketing slogan
- A positioning statement
It is much more than these things. You have an opportunity to fully encompass your brand and create a clear picture to your target customers. If done right, then you can use your value proposition statement to drive your marketing campaign.
Value Proposition Development
How can a great value proposition optimize my digital marketing strategy?
After you understand the unique needs of your customers, you will have all the tools you need to create a great value proposition. Your value proposition is not just a hypothetical, it needs to be brought into every aspect of your marketing, including your email marketing. Especially if that is the method you use primarily to communicate with your audience.
If you’re at least A/B testing — subject lines, images, button colors — you’re off to a good start, but you need to be tapping into value proposition. By ignoring this, you lower your potential for a higher open rate.
A value proposition should focus on four major elements:
- Appeal – Why do I care about this offer?
- Exclusivity – Can I get this same value somewhere else?
- Credibility – Is this offer trustworthy?
- Clarity – What exactly are you offering?
Often, it’s our natural inclination to do things how they’ve always been done, because they’ve always been done that way. Decisions may be made based on personal preferences, intuition, industry practices, or past experiences with no data to back it up, yet we continue to do it that way.
When working on the Global Leadership Summit, during my time as Executive Director of Digital Marketing at Willow Creek, I identified this pattern of decision making in the messaging for the Summit. The team had never applied testing to what they were doing with any sort of method. As a result, the organization was not capitalizing on potential attendees and potential revenue. Money was being left on the table.
Identify opportunity to carpe diem
My team reviewed the event marketing calendar to identify key pricing deadlines to create moments of urgency and exclusivity. We used the lack of pricing urgency between March and June to leverage valuable content with the founder of the Summit, Bill Hybels. We created urgency with an email to get this ‘Best of Bill Hybels’ DVD using the subject line:
“Register for the Summit by this Friday, get a free copy of ‘The Best of Bill Hybels’ DVD with your purchase.”
It hit all four major elements of the value proposition:
Appeal: This email introduced an exclusive offer and created appeal by giving a deadline to register by in order to receive the gift
Exclusivity: The offer was only available to those who registered for the Global Leadership Summit
Credibility: The Global Leadership Summit had been running for 25 years prior and Bill Hybel had his own established credibility being leveraged here, as well. The Summit would gain even more credibility by showing people the type of professional knowledge they could expect from the event.
Clarity: The email explicitly stated what the reader needed to do by when to receive what.
As a result of this email, the team saw 1,080 additional registrations from that campaign, with the primary channel being email. The offer messaging was also echoed on social media, but 95% of the registrations came in via email.
Continue to optimize your value proposition
Don’t stop just because you see results, use the learnings you’ve earned from the results and continue to optimize your strategy. When we saw that our audience valued additional content, we focused on that and communicated that value through our email marketing campaigns. We then decided to test different subject lines to see what our customers valued.
Through this strategy, we were able to refine our email marketing campaigns, maximize our growth potential for this particular event, and carry these learnings with us for other events moving forward.
This is not a quick and easy strategy. It takes a lot of work, trial and error, and dedication to the process. I can help with that.
How Can We Help?
The essence of effective marketing is the message and the essence of the message is your value proposition. Through effective value proposition development, you will be able to establish a long-term competitive advantage and clearly articulate why you stand out from major competitors. I will work with your team to create a strategy that optimizes and tests your value proposition through digital marketing channels.
Schedule consulation with John to find out more.