Value Propositions: The Boring Secret to Stellar Marketing and Sales Materials
Why (and how!) to develop a value proposition for your business.
Why should a customer choose you over any other company in your industry?
If you don’t have a clear answer to this question, you’re not alone. Many businesses struggle to articulate what makes them different or better than their competition.
Enter the value proposition. A value proposition is a brief statement that explains who you serve, what you do for them, and what benefits you offer or what pain points your resolve.
Many think of the value proposition as the most boring of marketing statements. It’s not witty like a tagline. It’s not catchy like a campaign slogan. It’s not inspiring like a vision statement.
In spite of this all, the value proposition is crucial because it forces you to clarify foundational aspects of your business. It then serves as the backbone of your marketing and sales materials, providing direction for what taglines to choose and what campaign slogans to use.
Think about it this way: if you can’t explain to yourself why a customer should choose your business, how will you ever explain it to your customers?
In this article, I’ll explain what makes a good value proposition; discuss three ways of writing a value proposition for your business; and suggest ways to use the value proposition once you have it.
What Makes a Good Value Proposition?
A value proposition is a brief statement that explains who your business serves, what you do for them, and what benefits you offer or what pain points your resolve. Here are the attributes of a good value proposition:
It’s unique. Your value proposition is not something that could apply to your competition–after all, you want to use it to convince your customers not to go with your competition.
It’s specific. Your value proposition provides details about how you help your customers. No vague language here!
It’s easy for you to remember. Your value proposition can double as a quick elevator pitch. Your unique, specific language will open a lot of doors.
Look around at different companies’ websites to get a sense of their value propositions. Many of them identify who should use their product, why it benefits them or what pain point it resolves, and what it does. It’s often placed below the website’s hero text. Here are three examples.
Example 1: Square
Square’s value proposition suggests they’re targeting:
Who: Business owners
Why: Trust
What: Accept payments, build customer relationships, and grow their businesses
Example 2: Toggl
Toggl’s value proposition suggests they’re targeting:
Who: The entire team
Why: Intuitive, painless, boosts performance, gets you paid for every billable minute
What: Time tracking software
Example 3: Allara Health
Allara Health’s value proposition suggests they’re targeting:
Who: You!
Why: Compassion, treated as a whole person—not a set of symptoms
What: Care
How Do I Write a Value Proposition For My Business?
Writing a value proposition for your business can be tricky. The end result will likely be short–just one or two sentences!--but getting to the right ideas can take time.
Here are three ways that you can write a value proposition for your business.
1/ The Classic Value Proposition Sentence
Here’s a tried-and-true structure for a value proposition:
“We help [target customer] do [action] by [offering…]”
Try filling out this sentence. It may seem simple, but it will force you to figure out:
Who your target audience is
What pain point you relieve for them or what gain you offer them
How exactly you do it or what your primary product / service is
Examples:
My business, ConiferCo, would say... "We help [CEOs of small teams] [focus on their priorities] by [leading marketing strategy & implementation.]"
A recruiting firm might say… “We help [business leaders] [exceed their targets] by [quickly sourcing the best talent to grow their teams.]”
A plumbing business might say... "We help [local homeowners] [keep calm and carry on] by [providing round-the-clock plumbing help.]"
2/ The “5 Whys” Exercise
The "5 Whys" is a classic exercise to identify manufacturing and operational challenges. But it can also be powerful in marketing because it identifies the motivators behind what your business does.
These motivators can be turned into marketing messaging for your business–including in your value proposition. Motivators make memorable messaging because they are relatable and human. Weaving them into your messaging attracts customers.
Here’s how to run a "5 Whys" for marketing with your team:
Explain what your business does.
Ask yourself why you do it.
Look at that response, and ask why.
So on, and so forth, until you have asked yourself “Why” 5 times.
The end result can provide a distinguishing factor, a human motivator that will set you apart from your competition. Weave this element into your value proposition. If you need guidance on how to facilitate a “5 Whys” exercise, contact me.
Example:
A recruiting firm might start by saying, “We quickly source talent for teams that have openings.” After the “5 Whys,” it might say, "We relieve stress for teams everywhere by quickly sourcing talent to fill any gaps."
Over the course of their "5 Whys" exercise, they may have come up with the insights:
Team managers have huge influence over their team's happiness and productivity.
An under-resourced team is a high-stressor for everyone.
We don't want people to be stressed.
Peter Thomson’s Value Proposition Canvas
3/ The Value Proposition Canvas
The Value Proposition Canvas, created by digital strategist and venture capitalist Peter Thomson, can structure a conversation with your team about your company’s value proposition. Unlike the “5 Whys,” which focuses on your own business’s motivations, this framework forces you to think about your customers’ motivations and needs.
When you fill out the Value Proposition Canvas, you will be forced to consider:
What does your customer want?
What does your customer need?
What does your customer fear about using your company?
You’ll also break down your value into benefits, features, and experience.
You can combine these two components–the customer’s emotions–with your business’s offerings to create a powerful value proposition.
This exercise works well with a group, though you could also work on it by yourself. If you need guidance on how to facilitate a Value Proposition Canvas session, contact me.
Example:
After filling out the Value Proposition Canvas, a recruiting firm might realize:
Their customer wants: A complete team, and fast!
Their customer needs:
Someone who understands their business and the type of person who will succeed there.
Someone who has similar judgment to internal hiring managers.
Their customer fears:
The recruiting firm will not be able to deliver quickly enough.
The firm will not be able to source quality candidates.
It will be better for our own team to find talent.
These insights can drive the recruiting firm’s value proposition and broader sales materials.
How Should I Use My Business’s Value Proposition?
There are many ways to identify your business’s unique value proposition. Once you have it, don’t let it linger in an unopened Google Doc. Instead, use it as a guide to create or refresh your marketing and sales materials.
Here are some ideas for how to take advantage of your new value proposition:
Use it to shape the messaging on your website’s homepage and on key landing pages.
Create tag lines and mission statements based on it.
Design campaigns around it.
Rewrite your sales materials to feature it.
Update your email drip campaigns to include it.
Are you ready to write or revisit your value proposition? Contact me if you need any help going through the process.
Here are two ways I can help you:
Serve as your business’s Fractional CMO.
Develop brand messaging for your business.
Interested? Send me a note.