Finding the right value proposition for your startup is no easy task. Most entrepreneurs end up with their winning value proposition after several attempts. Value proposition is a key piece of puzzle for your marketing campaign.
A good value proposition coupled with a sales script resonating the idea can work wonders in terms or new customers. It also plays a key role in customer retention.
In this post I am going to discuss some proven techniques to find a value proposition that works for your startup.
Before diving deep I think it’s important to point out that your value proposition might change over time. It’s completely normal for your startup’s value proposition to evolve with new features and services.
The True Definition Of A Value Proposition
In simple terms value proposition stands refers to why someone should purchase your product.
Here are 2 key questions you should ask yourself when coming up with your first value proposition for your startup:
- How is my product solving something for my target market?
- How the solution will help the customer?
The value position plays a key part in determining how frequently your visitors are becoming customers.
For any product, a personal makes their decision based on what I call an enthusiasm meter.
(Proposed Value – Proposed Cost) determines the enthusiasm of the customer.
The greater the value, easier it is to sell.
Using the formula above you can clearly see that:
You can control what you say across your marketing channels OR You can control the price of your product.
Other factors like external competition also plays a role in creating the perfect value proposition for your startup but I will get into that in a bit.
This means you need to come up with a value proposition strategy that attracts the right kind of leads and prospects for your startup.
How To Convey Your Value Proposition On Your Landing Pages
When you are the running Facebook Ad campaigns for your startups (or other PPC channels), the first time someone learns about your brand is by visiting one of your landing pages.
Your landing pages need to define the value proposition clearly in order to attract the best leads for your sales team.
I have seen a number of time when the marketing team would tweak the words and make the value proposition sound different just because they want the AdScore or Relevance score higher. This is a mistake.
You should never deviate from your core statement even if the lead cost is higher. Because the close ratio will be much lower and the overall CAC (Customer Acquisition Cost).
Elements For Defining Your Startup’s Value Proposition On The Landing Page
There are a few key elements that you should focus on in order to get the value proposition across to your prospects:
- Top Headline – Your top headline is the first thing a visitor sees when they land on your landing page. You need to tell your visitors what your company is all about.
- Sub Heading – The sub heading should either explain what you do in greater detail or how your startup helps solve a problem
- Bullet Points – Sometimes you want to expand your value proposition further by adding a bunch of bullet points.
- Illustrations & Workflows – Often overlooked, illustrations and workflow graphics can convey your value proposition much faster
Examples Of effective Landing Pages That Explains The Value Proposition
Asana uses a simple text and a sub-heading that explains how people can benefit from their software.
Effective headline that explains what they do. The call-to-action (CTA) has a reaffirmation text below to increase signups.
“Acquire” uses their dedicated landing page to explain how their software achieves more sales from first time visitors. The value proposition is laid out in a really cool.
Steps For Finding The Right Value Proposition For Your Startup
Now that you know what a value proposition is, it’s time to create one for your company. In this segment I am going to share some steps to create the winning value proposition for your startup. Like I said before, the value proposition changes as any company evolves.
Send out a survey to existing clients
Send out a survey to existing clients and find out what they like about your product. You can also ask for testimonials and they will likely share how your product helps them.
A/B Test Different Headlines & CTA
The most definitive way of finding out a good value proposition is to A/B test different headlines and messages. However, you need to follow through your A/B tested leads all the way to the sales cycle and beyond.
Get feedback from your sales team and find out which version is actually having a better close ratio. Focus on that variant of value proposition and set it as a baseline for your next test.
Sell Yourself The Product
When you sell the product to yourself you will inevitably come across the question as to why someone should buy