In a previous post, we discussed the importance of creating a compelling, differentiated, credible, and sustainable over time value proposition that explains:
- The specific benefits customers can expect from your products/services
- Who your ideal customer is
- How your products/services solve problems/improve situations
- Why customers should do business with you over your competitors
The term “online value proposition” (OVP) is quickly becoming a key phrase for businesses operating in the digital world. An OVP should not merely be a duplication of the value proposition which is available on offline channels. Instead, it should also include the unique online benefits offered by the brand.
Why is a Strong Online Value Proposition Important?
Having a value proposition is essential in helping differentiate your business from the competition. In the physical world, factors such as location convenience and zoning laws contribute to promoting your business and limit competition. But online, there are no physical limits or barriers to you or your competition. Therefore, having a value proposition is especially important for online businesses.
By clearly communicating your benefit and value-add to your prospects, you instantly give them the reason to choose your business over your competitors. With a strong value proposition, you can:
- Attract and convert more customers
- Increase customer loyalty
- Explain how you deliver a benefit over competitive offerings
- Command higher prices
A clear, concise online value proposition is crucial to attracting visitors to your site (and brand) in those critical seconds when a visitor is deciding to click on or leave your site. An online value proposition is closely tied to your brand positioning, which answers questions like:
- Who we are
- What we offer
- Which markets do we serve
- What makes us different
It should state the intrinsic benefits a visitor will get from your site and answer the question, "what's in this for me?".
Requirements of an Online Value Proposition
Online value propositions can follow different formats, provided they are unique to your company. Effective value propositions:
- Are easy to understand
- Demonstrate specific customer results
- Differentiate a product or service from competitive offerings
- Avoid overused marketing buzzwords and jargon
- Communicate value in a short amount of time
For a value proposition to effectively turn a prospect into a paying customer, it should clearly:
- Identify who your target customers are
- What their main problems are
- How your product or service is the ideal solution to help them solve their problem
A compelling value proposition must be the result of thorough research to "prove" your product's superior benefits with respect to competitive alternatives in measurable (i.e., monetary) terms. You can use the results of that research to make strategic decisions about product development, marketing, and sales (i.e., the product's value proposition for its different customer segments). Using that information, you can create messaging campaigns and brand positioning statements for marketing and promotion.
Characteristics of an Online Value Proposition
Because your value proposition communicates the number one reason why your product or service is best suited for a customer segment, it should always be displayed prominently on your website and in other consumer touchpoints. It also must be intuitive so a customer can read or hear the value proposition and understand the delivered value without further explanation.
A successful value proposition typically has a strong, clear headline that communicates consumer benefits. The headline should be a memorable sentence, phrase, or even a tagline. It frequently incorporates catchy slogans that become part of successful advertising campaigns.
Uber – The Smartest Way to Get Around
One thing Uber most definitely does right is its unique value proposition. Without overtly saying so, Uber expertly highlights everything adverse about taking a traditional taxi and points out how its service is superior. The simple (yet highly effective) copy above on the Uber homepage brilliantly conveys the simplicity and ease at the heart of what makes it such an enticing service:
- Tap the app, and a car comes directly to you
- Your driver knows exactly where to go
- Payment is completely cashless
Everything about this directly contrasts the typical taxi experience:
- No phone calls to disinterested dispatchers
- No painful conversations explaining where you want to go to stressed-out drivers
- No fumbling for change or worrying you’ve got enough cash in your wallet
- Just a fast, efficient way to get where you need to go
This is reinforced by the aspirational messaging toward the top of the Uber homepage, stating, “Your day belongs to you.”
Contact us to learn how our FullSurge brand consultants help clients create meaningful, memorable brands that stand out from the crowd and drive business success.