Updated: Apr 16, 2020
Many businesses struggle with lead generation... and it has nothing to do with Facebook, Google, or the ads you're running. In order to successfully eliminate a problem—you have to identity the source.
.....& the source of your problem is your value proposition.
What is a value proposition?
noun n: value proposition;
plural noun: value propositions
(in marketing) an innovation, service, or feature intended to make a company or product attractive to customers.
A true value proposition isn't a slogan or an unbacked claim. It is something that separates yourself from your competition, and holds real value in the marketplace.
Why do I need a value proposition?
Differentiation Whenever a prospect interacts with your business, the first thing they ask themselves is "Why should I buy from you?" You have to answer that question with something of tangible value that nobody else in your area offers.
If you offer the exact same thing as everybody else—you're left to fight over price. That's a game nobody wins, and a game I don't want to play.
When you can provide something tangible that they can only get from your company, you can charge a premium price and close more sales. This makes your business more profitable on both margin and volume.
Example 1: Let's look at it from the perspective of one of our prospects considering us a solution for the marketing. When they ask "Why should I buy from you?" we answer with:
We have a list of prospects actively pursuing exactly what you sell in real time.
We can run ads to the 3% of the market who is sales ready, decreasing your ad costs by 97%.
We help acquire new customers for up to 75% cheaper than what it costs you now.
Our predictive Machine Learning improves efficiency over time.
We can turn your anonymous website visitors into leads without a form-fill.
This is what a value proposition should look like. It is not a slogan. It is tangible. It has real value.
One of our clients owns a roofing company in Florida. Roofing is a highly competitive industry where everyone is selling the same products and services. As a result, contractors are left to fight over price. This is a losing battle.
When we performed a competitive analysis of our client's business vs. his competition, we discovered he was the only roofing contractor in his area who manufactures his own materials for metal roofing. This saves his customers 2-3x on their project, which translates to 3-10k in savings for the consumer. When we learned about this competitive advantage, it became clear this is what we wanted people to know about his company, and served as a great value proposition.
When we ran a marketing campaign, within the first 30 days we scheduled 15 inspections and saw an 80% increase in calls.
A value proposition has to be understood, believed, and accepted. They have to understand the value proposition to believe it. If they don't believe it, they won't accept it as valuable.
Now ask yourself, what is your value proposition?
The Buyers Journey
To help you visualize the questions a value proposition has to answer, you need to understand the 6 stages of the buyers journey. These are the stages people go through before they make a decision.
Stage #1 - Aware : Do I have a problem?
Stage #2 - Define Problem: How big is my problem?
Stage #3 - Consider Options: How can I solve my problem?
<<All prospects visit a companies website before they purchase from them, seeking answers about solutions>>
Stage #4 - Evaluate Solutions: Which solution is best?
Stage #5 - Justify Decision: Is this really worth doing?
Stage #6 - Final selection: What are the terms?
With a strategic value proposition, you will walk your prospects through each of these stages, a series of micro-yeses that lead to a macro-yes. (i.e. - a sale)
How do I create a value proposition?
We have a framework we take our clients through to develop a strong value proposition.
1. Industry Analysis:
What are the products / services being offered?
2. Market Analysis:
What is the competition doing?
What are we doing that nobody else is doing?
What can we do that nobody else is doing?
4. Strategic Alignment:
Does it fit the customer persona?
Do they understand, believe and accept the value proposition as valuable?
Test it in the market.
How do they respond?
Why do they respond this way?
Base existing and future marketing efforts around data and insight gathered from testing.
If your value proposition needs work or you're having a tough time separating yourself from your competition with meaningful differentiation, we offer marketing consulting services designed to impact the bottom line.