The customer value proposition is a statement that explains why your company is useful to your customers. Why should they purchase your products? Will working with your company be easy? Can you help them overcome their challenges? These are the types of questions that need to be answered in a customer value proposition.
The customer-centric approach to marketing is not new, but it has become much more precise through the use of new technology. Like the name implies, customer-centric marketing puts the end user of the product at the heart of the marketing strategy. What benefit is your service to the end user, in other words, why should they click on your Call to Action (CTA) button? Your customer value proposition needs to be able to convey your why in a way that is simple enough to be understood at a glance, yet powerful enough to motivate the buyer to take action. So how do you create a customer value proposition of your own? Moreover, how do you convey it online? In this article, we will tackle both questions and explain why having a clear and concise customer value proposition is more important now than ever before.
What is a Customer Value Proposition?
A customer value proposition is an introduction to your product or service; ideally, it describes the nature of your offering, whom it benefits, why it is useful, and why it is different.
Let’s dive into how to structure and use a value proposition for your business customers, but first, we need to clarify what we mean when we talk about value in this context. In a business to business market often the value is the worth of the service a company gets in exchange for the price it pays. As a metric, the value is usually measured in monetary terms even if the benefits provided appear to be non-monetary. However, a customer value proposition does not need to prove a direct financial benefit to be effective. Think of the customer value proposition as a welcoming introduction to your service, digging down into the economic benefits of the value you provide is best saved for customers who are slightly farther into their buyer’s journey. You are speaking to prospective businesses who are in the early stages of their buyer’s journey, what these prospects need is an encouragement that you are worth their time. Thus, they will continue to explore your product or service.
How to Show Value
The modern buyer’s attention span is short, and users are not willing to invest too much time deciphering your offer regardless of its placement. In an example, we often look at user statistics such as a recent study done by Google. The research shows that the average mobile site visitors will leave a page that takes longer than three seconds to load. Often when companies are optimizing their website, they are only considering UI and speed. It is just as significant to optimize how you convey your offer because users need to understand what value your website, content, app, product, or service will provide them and they need to know it almost immediately.
Competition in the digital world is getting fiercer by the day. One of the best ways to distinguish yourself as a business service provider is to convey your value propositions to the right customers, at the right time as clearly and quickly as possible.
Not just another selling point:
Your customer value proposition needs to do more than just sell your product or service to a buyer. If you can continuously show someone the value of using your service then they become more likely to share and recommend your service to others. This can be as simple as referring prospects to resources which will help them tackle their business challenges, or it can be as elaborate as providing them with in-depth educational support to ensure they are equipped to overcome the issues they face.
Explain the why:
Every company can explain what their service does and how their customers can use it, but not every company can tell their customers why they should use their service. Ask yourself the question why did you start your company in the first place? We are willing to bet that you had motives beyond capitalistic financial gains. Explain why you created your service and you will appeal to the people who need it most. For more on this check out our post on Brand Positioning.
Speak with more than words:
There’s nothing more important online than speed. The first question a user is going to ask themselves once they land on your site is “what’s in it for me?”, it becomes your job as a designer to answer this question as quickly as possible. You need to make sure that the user experience of your online content is designed to help people find the value that they are seeking. Poor web design or inconsistent visual branding can lead to user confusion and reduce the likelihood that someone will continue to use your service.
There’s a lot to consider when creating a customer value proposition. Before you write/update your customer value proposition, make sure you can answer the following questions:
What kind of value does my service provider?
Why does my service exist?
Moreover, How can people use it effectively?
Once you have definitive answers to these question, then you can create a customer value proposition that will appeal to the modern buyer. You do not necessarily have to write out your customer value proposition, instead, think of it as a feeling that your prospects have after interacting with your content.