A value proposition is a statement that clearly identifies the benefits that a company’s products and services will deliver to customers. A well-crafted value proposition is a powerful tool for local businesses. It’s a critical part of any marketing strategy, as it helps identify and communicate the value of your products or services to your target audience. Let’s look at the benefits of a strong value proposition:
▶ COMMUNICATING YOUR BRAND
Your value proposition is a great way to communicate the essence of your brand to your potential customers. What do you do better than the competition? It’s important for your business to stand out with its own value so customers are compelled to support you. A 2017 study found that dissatisfaction and service failures were often due to misalignments between a business’s value proposition and the buyer’s desired value.1 In other words, make sure that your value proposition correlates well with your customers and then deliver on your promises.
▶ ATTRACTING & RETAINING CUSTOMERS
A strong value proposition helps you stand out while giving local residents a reason to choose your business instead of the competition. Up to 65% of businesses take time to establish value propositions. Yet, according to Statistics Lab, around 90% of people don’t make up their mind about which brand to do business with before they start their search.2 If your value proposition is clear and compelling, it will not only attract new customers, but also help you keep your existing customers coming back for more.
▶ DIFFERENTIATING YOUR BUSINESS
Your value proposition is a big part of what differentiates you from the competition and it helps your prospective customers decide that you’re the business to go with. If there’s no difference between you and your competition, there’s no clear reason why a customer would be persuaded to do business with you. Make sure your value proposition includes why your business is unique and be sure to include specific information about how customers benefit from working with you. The more clearly you set yourself apart from your competitors, the more results you’ll see from building a strong value proposition.
By Jo Peek, Danville Living CA
