Delivering value is core to online business success. Create a compelling value proposition to connect with your audience.
With a strong value proposition you’ll be able to:
- Attract and convert more customers
- Increase customer loyalty
- Command higher prices
- Outperform your competition
Sound good? Sound valuable?
What is a value proposition?
Your value proposition is the core of your competitive advantage. It clearly articulates why someone would want to buy from your company instead of a competitor. – HubSpot
The ‘why’ is crucial. Simon Sinek famously described the importance of starting with ‘Why’ in his TED talk that has been viewed millions of times. If you haven’t watched it, take the 5mins. Its wisdom is timeless.
Your value proposition is also one of the most important conversion factors. Whether it’s encouraging people to read a blog post, engage with you on social media, click on an advert or give you the time of day – a great value proposition could be the difference between losing a sale and closing it.
Your value proposition forms the core of your business model and your product.
Without a value proposition, it is impossible to know if and how you will make money, which partners you need, the nature of your key operations, and how you will acquire and retain customers.
How do you communicate and market to your customers without telling them what they will get for their hard-earned cash?
How do you create a Value Proposition for your online business?
The ultra simple way is by completing using Steve Blank’s template to come up with your own value proposition. Blank created a simple formula to transform a brainstorm into a simple sentence: We help (X) do (Y) by doing (Z).
What’s our value proposition? We will help solopreneurs start and grow their online business by delivering actionable content.
Another well-known and detailed methods for creating your value proposition is using the Value Proposition Canvas by Strategyzer. You can watch the video below and use a sharpie and blank piece of paper to create your own canvas right now. This is one of the most valuable exercises you can do when starting your online business. It helps you to look at your customer segments, their pains, and challenges, what you will deliver to help them and what you will need to get it done.
Completing the canvas allows you to create a Value Proposition Statement like below for your online business, products and services. This statement is good to print or write out, and put on the wall as a constant reminder of the value you are delivering and who you are delivering it to. The Value Proposition Canvas goes hand in hand with the Lean Business Canvas, which is a business plan on a page for your online business.