Are you wondering how to write a great value proposition?
Keep in mind this is the driving force behind catching the interest of your target demographic. Without a great one, your products will not engage with consumers. Learning how to write a good value proposition is therefore essential.
In this article, I’m going to look at how you can transform your brand and the way it is perceived.
What is a Value Proposition?
Your value proposition is what makes your product/service most desirable to customers. It concisely shows how your product is beneficial to the customer and how it stands out from the competition.
A powerful value proposition, therefore, highlights how your product solves a problem for customers, making it an essential purchase for your target audience.
Your value proposition is the foundation of your marketing strategy. By putting your value proposition at the heart of your promotional material, you are conveying in an effective way why people should be interested in your brand.
In essence, then, your value proposition is how you convey persuasive information about your product. When someone asks you what your product is and why they should buy it, you should answer this question with your value proposition.
What is a Bad Value Proposition?
To learn how to write a great value proposition, you must understand how it differs from a bad one. A bad or ineffective value proposition does the following:
- Confuses customers about the function of your product
- Overlooks or omits your product’s most important features
- Assumes customers will automatically be interested in your products, and so, therefore, does not attempt to be persuasive
- Presents false or misleading information about your product or service.
Anyone of these or a combination can sink even the best product, so it’s important to avoid these missteps.
What are the Features of a Great Value Proposition?
When you’re learning how to write a great value proposition, you have to understand what the underlying features or components of a great value proposition are. These features can then be crafted to best represent you, your product, and your brand.
A great value proposition has the following features:
- It is easy to understand
- It is concise
- It describes your product’s key function alongside the problem it solves for customers
- It describes your product’s advantages over competitors
- It has been crafted specifically to resonate with your target audience
When you are raising capital, for example, your value proposition needs to be super clear for investors. Also before you even go out there seeking investors remember that storytelling plays a key role in fundraising and you will need capital to scale things up. This is being able to capture the essence of the business in 15 to 20 slides. For a winning deck, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
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