What is a Value Proposition and How Do I Create One?

Create a value proposition to focus your marketing strategy

One of the best things you can do for your business is to create a marketing strategy. You’ll be able to focus your marketing efforts on a clear goal and measure the effectiveness of your work easier. 

The first step in creating a marketing strategy is to come up with a clear value proposition. With a solid value proposition, your marketing strategy and business strategy will have a clear and defined set of goals you can follow.

What is a value proposition?

A value proposition statement lets you communicate how your services will satisfy your customers’ needs over your competitors.

Value propositions help you to differentiate your business in the marketplace. They help customers identify with your business and determine if it is worth their time, effort, and money to work with you.

Why is a value proposition important to your marketing strategy?

A value proposition statement will define the parameters of your entire marketing plan. You will be able to focus all of your energy on your ideal customers and on the products you offer. This will help keep you focused and align all parts of your marketing efforts.

How do I start writing a value proposition?

Answer these 3 questions to start creating a good value proposition:

1. Who is your target customer?
2. What problem is the customer currently having? 
3. How will you solve the problem?

Once you’ve answered the 3 questions above, you should have a foundation to start writing your value proposition. Let’s do an example:

Value proposition example

You’re a bookkeeper in Tennessee looking to get more leads through your website. Let’s answer the questions:

1. Who is your target customer? Landscaping companies in Tennessee.
2. What problem is your customer having? They’re too busy managing estimates and jobs to stay on top of their customer invoicing and monthly bookkeeping. They’re losing money by wasting time on their books and not spending more time working with their customers.
3. How will you solve the problem? You offer monthly bookkeeping plans, payroll services, and customer invoicing for landscapers. You have 3 package levels so that any landscaper can afford your services. You will save them time and money, and help track and manage any previously unsent or outstanding invoices. You’ll also offer monthly statements so they can watch their profits increase and their outstanding invoices decrease.

Once you’ve answered the questions as we’ve done above, you can start creating specific services to help your audience. And once you have these services clearly defined, you can add them to your website and start advertising and promoting them to your target audience. This is a much better way to grow your business than trying to solve everyone’s bookkeeping needs.

Conclusion

By creating a clear value proposition, you’ve essentially created a basic marketing strategy, defined your audience, and created a custom list of niche services to sell to your audience.

If you need help writing your value proposition, give us a call. We can work with you to set up a solid marketing strategy to help you grow your business.