Value Proposition! — Killer way to increase the conversion rate.
I had talked about the conversion rate optimization process in my previous article:
I will talk about what is the value proposition of any business and how it helps in the conversion of visitors into a customer.
How do you distinguish yourselves in this very vast market space? why would somebody choose to buy from you? what is so unique about your product? what gives you that edge above other competitors?
We’ve been hearing a lot of these questions recently, and it’s really important to take into consideration the feedback we get. Most people want to know whether they’re buying something new or trying something different (if at all). The value proposition revolves around this.
What is “Value Proposition”?
A popular definition states — “A value proposition is a promise of value to be delivered, communicated, and acknowledged.”
Well yes, a value proposition is a promise and value you deliver by defining the problem you solve and clarifying why you’re better than the alternatives. Whatever marketing and advertising we do, it always revolves around the customer. One of the most important elements is the Trust factor of the audience. By having a compelling value proposition, you really address those needs by building this value proposition and translating them into copy and designing websites. In a nutshell, the value proposition is a clear statement that explains how a product solves a current problem and delivers results with the best efficiency, and what extra/unique thing you are providing.
Importance of value proposition!
Sadly, too many businesses don’t really appreciate their websites and don’t get the full advantage out of them. They ignore the architecture, the copy of the website, and other significant essentials. This leads to a very poor website and leaves visitors wondering if the company is the right one for them or not.
As you grow your company, both the intent of your business and your relationship with your clients are defined by your value proposition. It should be simple and succinct. Hence it is very important to have a clear and easily understandable value proposition to gain the trust of the consumer and differentiating from the competition. Once you understand how to write a value proposition, it helps to see how these strong statements affect your company’s strategy. This helps you to continue to focus on your brand and values while working on market strategies and tactics. They help you maintain the brand’s focus on its values while working on markets, strategy, and tactics.
“Make something people want and sell that, or be someone people need and sell you.”
― Ryan Lilly
Conversion Optimization course at CXL institute has defined a clear process for writing a value proposition. Key points we need to keep in mind are:
- Research: customer, product, and competition — understand your target and study it thoroughly. The first step should be defining a problem and then finding the value out of its solution. And that solution must have something unique in it. There are many ways we can get information and good points for our value proposition such as surveys, product review comments, potential customers, etc.
- Outline and guideposts — Guideposts are the markers that help you write the content. It is basically structuring the basic framework for the value proposition. By studying different pages of your website, you can generate templates for those pages. It usually only takes a few minutes and provides a roadmap for the rest of the project.
- Draft copy — Using those templates, you can prepare drafts for your pages.
- Conversion boost — The goal of the website copy is to convert the reader into a buyer. Make sure that copy must be clear, informative, and interesting.
- Revise, rearrange — Once done with writing a copy, get it revised by a few people for a fresh perspective. It is generally helpful to get it revised from someone outside of the company or a potential customer. From there you get genuine feedback and you know what’s working and what’s not!
- Test — There is no direct way we can test this without launching our product. But we can show it to some fresh minds and try to gather as much as insights as we can. We can get a rough idea about how much it is attracting the readers.
I gave a thought to this process and tried to understand how big companies like iPhone, OnePlus, etc. use value proposition and position themselves in the market. How these companies define their value and differentiate them geographically and demographically.
iPhone is solely basing its value under the user experience and OnePlus on its spec-heavy premium but low-cost phones. It is hard to imagine a more iconic product than the Apple iPhone, but on the other hand, OnePlus has set out to build “the flagship killer,” a smartphone with specs better than any other smartphone, with a price tag of half of its competitors. Apple firmly reiterates its value proposition in the copy about its iPhone range of products, Specifically, the design of the device itself, the ease of use that has been a cornerstone of Apple’s design aesthetic since the launch of OS X, and the aspirational qualities that an iPhone supposedly offers the user. But when it comes to cost Oneplus has provided very much high-ended spec-heavy premium phones for less than half the price.
This concept is something very interesting I got to learn in the Conversion Optimization course at CXL Institute in its second week.
Conclusion
When marketing strategies and advertising campaigns are successful, value propositions translate into market share gains. Across all media outlets, such as television and the Internet, successful promotional campaigns provide clear messages. Usually, promotional messages are based on value ideas and positioning claims. These messages help attract potential customers and make them understand the value of the product. If the value proposition is interesting and clear, the conversion rate is higher. But these propositions need to be based on the positioning of the product in the market, target audience, and maturity of the product.
It has been a great learning journey with CXL until now, excited to explore more.
