One of a business’s main priorities should be to improve the lives of customers, especially in e-commerce.
To be able to do this it’s important to know what value you offer to potential customers and what speaks to them directly. A key element of any conversion optimization strategy should be testing value propositions – this will help you improve your conversion rate and average order value.
Before we get into detail on how to great a great value proposition, let’s provide a clear definition of the actual meaning of it.
What is value proposition?
A value proposition is a statement of the different ways you provide value to your customers. find out more here: https://www.growcode.com/blog/ecommerce-value-proposition/).
It also determines the customer’s decision on whether they should buy from you instead of your competitors. The proposition shows how you solve issues your potential customers may face in the future and how you improve their customer experience by adding further value. Value proposition can mean specific benefits such as free shipping or emotional experience like convenience and ease when ordering.
An example of a value proposition is how Etsy provides an opportunity for customers to buy handmade products. Since most mass-produced products aren’t unique, Etsy provides a solution that allows buyers to discover artisan sellers.
Another example is how Amazon solves issues of poor product choice and slower shipping. They provide a variety of available products with quicker delivery. Some other benefits are also added such as one-click delivery, wish lists, gift-wrapping, and a loyalty program called Amazon Prime.
Your value proposition will be shown as a simple statement that describes key features and problems your store solves – this will help you stand out amongst the competition.
Value proposition, USP, a slogan and a mission statement are all similar terms.
USP is a unique selling proposition, which refers to specific unique features of your online store. Your USP will be included in your value proposition in terms of the unique value it provides. Amazon’s one-click purchasing is a perfect example of this – it provides a convenient and easy solution for users.
Slogans tend to be short, one-sentence phrases that summarize your value proposition. This is important, but it isn’t the value proposition itself.
A mission statement is a description of the goals of your company. It describes what you hope to achieve and how you plan on doing it. Microsoft’s mission is “to help people around the world realize their full potential.”
What makes a good value proposition?
A proper value proposition should be aimed to your target audience. This means that you must have a good understanding of the demographic and psychographic details of your market. It should also include expected factors like easy return policies, fast shipping, and reward programs. These are all common things that most online stores already offer. Make sure that your value proposition includes at least one USP that sets you apart from other competitors. Don’t over-complicate things – make them as clear and simple as possible.
Where do you communicate your value proposition?
- On the homepage of your website
- In the header
- On your product and checkout pages
Creating a proper value proposition involves a few steps:
Step 1 – Define your market’s problems and delights – remember to include both problems and delights. A good value proposition provides customers with benefits that will improve their lives.
Step 2 – Focus on underserved markets – including elements of your value proposition that are aimed specifically to underserved markets enable you to broaden your potential customer base. Amazon offers special discounts to students.
Step 3 – Include a unique selling proposition – explain what sets you apart from your competition by thinking from the clients’ perspective. Pinpoint why your services are important to them and why they should you over another provider.
Step 4 – Create a statement of your value proposition – everything comes down to this. A statement of your VP is also useful for setting a goal for your whole company.
Your value proposition is one of the most crucial elements of your business. It gives customers a reason to purchase or repurchase your products. A proposition will also keep your company organized – this includes all of your departments that focus on marketing, sales and customer service. Try your best to create high-converting promotional materials and build a loyalty program that deals directly with your customers’ needs and wants which will leave everyone, especially the customer, satisfied.