The Importance of a Well-Crafted Value Proposition Statement
The value proposition or positioning statement is one of the most important elements of creating a winning marketing plan. Many smaller companies just jump into marketing tactics like signing up for Google Adwords or sending out an e:mail campaign or creating a new website without having a complete Value Proposition with all the elements.
So what is a Value Proposition?
It is a clear statement of the tangible results a customer gets from using your products or services. It is outcome-focused and stresses the business value of your offering and what makes it different from the competition. The more specific your value proposition is, the better.
Why is it so important? It takes time and money to market your business and to do it effectively so you get the most return on your investment. You want to make sure that you know what you want to say to your target audience about your business and why they should purchase your goods or services.
What are the elements of a complete Value Proposition statement?
Target Audience – Who am I targeting and what do they need or want?
Point of Difference – How do I differentiate myself from my competition in a meaningful way?
Support (data/metrics) – Why should my target audience believe that I’m different? What are my proof points?
What’s the difference between a Value Proposition and an Elevator Speech or a Unique Selling Proposition?
An elevator speech is a short 30-second statement defining who you work with (target market) and the general area in which you help them. It doesn’t usually have the support points.
A Unique Selling Proposition (USP) is only a statement about what differentiates you from your competition.
It is often helpful to assemble a group of key stakeholders to brainstorm together to come up with a well-crafted Value Proposition and test a couple of options with the target audience. Getting it right is what is important not how fast the process is. This will serve as the foundation for all of your marketing and communications.