Web-planning for Success: Part 2 – What is a Value Proposition?
Do you ever stop and think about why you purchase one product over another? For example, do you drink Pepsi or Coke? (Oh, the classic debate!) Do you drive a domestic car, say, Ford or a foreign car, say, Nissan?
Well, if you actually analyze “why” you make the purchase, you might realize the factors at play, for example, brand identity, cost, or specific features. In the end, it boils down to the different value proposition that each company creates in their marketing strategy for you, their target market. It is this value proposition that really influences your decision to purchase, consciously or sub-consciously.
The first question I often ask an entrepreneur and business owner is: “what is the value proposition of your business?” Basically, why should I buy from you? The responses I get are very articulate and thought-out; they are often GREAT mission statements but not value propositions.
Having a strong value proposition and being able to communicate it is a fundamental component to marketing and selling your business, ultimately, growing it. It is at the core of any successful marketing strategy, in turn, it extends to your Internet marketing strategy and online identity.
In order to create an effective value proposition, you first need to need to understand what “value” is. Understanding “value” requires you to think like your best customer; creating a value proposition requires you to think like a great entrepreneur.
In its simplest definition, a valueproposition is a statement describing the unique benefits delivered by your business to solve a specific problem of your target customer. A value proposition should provide clarity for a solution to a problem; in best cases, even identifying a problem the target customers does not realize they have!
Myths of a Value Proposition
- A value proposition goes beyond the company’s positioning on a single attribute or feature. For example, “we sell our cola in a glass bottle”.
- It is not just a technology.
A strong value proposition is important for your internet-marketing strategy because your Internet marketing strategy is simply another touch-point with your potential customer. So, your communication message needs to be clear and impactful.
It won’t matter if you are Tweeting 15 times per week, running 10 email marketing campaigns per month or participating in 5 tradeshows per year. If you can’t clearly communicate/convince your potential customer why they should buy from you, then success will be hard to come by. This is why your value proposition is so important.
Your website is at the core of your online marketing strategy and there should be no mistake that all of your online activity should bring the prospect back to your business’ website where you can take them through the decision making process, ultimately, convincing them to purchase from you.
Every successful business and online marketing strategy has a clear value proposition. Be that business and you‘ll be successful.