The second part of my 10-point digital marketing strategy framework, “MasterPlan” is all about creating a value proposition. The first part covers objectives, you can read about that here but trust me, it’s not essential reading for this article. The value proposition stands on its own as a topic. So, let’s start with a question…
What is a value proposition and why is it an important part of a strategy?
A value proposition is a clear and concise statement that communicates the unique value your product or service offers your target audience above and beyond your competitors.
A strong value proposition provides a focal point for your marketing strategy, guiding your messaging and audience profiling.
A Value Proposition:
- Differentiates your brand from the competition
- Conveys the core value of your offering
- Attracts and converts potential customers
- Guides your marketing and sales efforts
- Improves customer retention
How to create a value proposition
There’s more than one approach, so feel free to adapt this one.
1. Understand Your Target Audience
Research demographics, psychographics, pain points and the goals of your target audience.
- Demographics such as Age, gender, location, income level, etc.
- Psychographics including, interests, values, lifestyle, personality traits, etc.
- Pain Points. What challenges or problems they face that your product or service can solve
- Goals and Aspirations, what they want to achieve or are striving for
There are some techniques to help gather this information
- Market research by way of surveys, interviews, or focus groups to gather data on your target audience.
- Social media listening is a useful way of monitor conversations to identify trends, pain points, and interests.
- Customer feedback can provide some excellent insights into their needs and expectations.
2. Identify Your Unique Selling Proposition (USP)
Your unique selling proposition (USP) is what sets you apart from your competitors. It could be a unique feature, a superior benefit, or a combination of factors that make your offering more valuable to your target audience.
Some questions to consider when identifying your USP include:
- What problem does your product or service solve better than anyone else?
- What unique features or benefits do you offer that your competitors don’t?
- How do you make your customers feel that your competitors can’t replicate?
3. Craft a Clear and Concise Message
Once you understand your target audience and USP, it’s time to craft a clear and concise message that communicates your value proposition effectively.
Your message should be relevant, specific, credible and memorable.
- Relevant - Address your target audience’s pain points and goals.
- Specific - Clearly articulate the benefits of your product or service.
- Credible - Back up your claims with evidence or testimonials.
- Memorable - Use strong language and visuals to create a lasting impression.
A common framework or format for a value proposition statement is headline, sub headline and call-to-action.
- Headline - A brief statement that captures the essence of your value proposition.
- Sub-headline or paragraph - A more detailed explanation of your offering and its key benefits.
- Call to action – Short message that will inspire engagement
4. Test and Refine Your Value Proposition
Your value proposition is likely to develop over time as you get feedback from your target audience and data from your marketing campaigns.
You can test your value proposition by split testing, conducting surveys or polls and website analytics.
- A/B testing - Test different versions of your value proposition on your website or landing pages to see which performs better.
- User surveys - Ask your target audience for feedback on your value proposition and how it resonates with them.
- Analyse website and campaign data – Measure engagement metrics see how your value proposition impacts user behaviour.
Conclusion
I find that when I’m developing a strategy the value proposition is the anchor for campaign messaging and provides direction for audience profiling which is the next part of my strategy framework. It is almost inevitable that after researching your audience in more depth, you’ll want to revisit the Value Proposition and that’s ok, it should be continually reviewed and refined.
Check out this article for more about my 10 Point Digital Marketing Framework
I love to talk strategy, connect with me on LinkedIn and we can talk more - Stephen Caple
