In marketing circles, terms like “value proposition” are often thrown around, but what exactly is it? Is it similar to an employee value proposition? How can a company use a value proposition to its advantage? This article will answer these questions and provide examples you can use.
What is a Value Proposition (VP)?
A value proposition is a statement that clearly outlines the benefits of your product or service to potential customers. It should help you stand out from the competition and make a connection with your audience. Thus, It can help you attract more customers and increase your sales.
What is an Employee Value Proposition (EVP)?
An Employee Value Proposition (EVP) is very similar to a value proposition, except the focus is on the employee rather than the customer. EVPs are the rewards an employee receives in exchange for the skills, experience, and capabilities they bring to the company over time.
Although this article will focus on product or service-specific value propositions, making your workplace attractive to employees can improve your ability to sell. If you have a positive employer reputation, you’re more likely to be popular with Millennial and Gen Z customers.
7 Examples of Value Propositions in Marketing
A value proposition doesn’t have to be unique or revolutionary; it just has to market your product to the right audience.
Let’s look at seven examples of great value propositions in marketing.
Example 1: Improved Customer Service
A McKinsey & Company study concluded that 70% of buying experiences are based on how a customer feels they’re being treated. In this category, a good value proposition could be “Our customer service tool helps you quickly respond to inquiries, resulting in higher satisfaction.”
Example 2: Increased Productivity
Many people buy software because it increases their productivity, which saves you (and your business time and money. An example of this VP includes: “Our software helps companies increase their productivity by streamlining processes and automating repetitive tasks.”
Example 3: Cost Savings
There’s no denying that businesses will pay a premium to reduce costs and maximize profits, making “cost savings” a great value proposition. You could say: “Our cloud-based platform allows businesses to save up to 70% on their monthly IT costs.” as it’s specific and testable.
Example 4: Increased Efficiency
A person can be productive, but they aren’t necessarily efficient. For example, learning English from a native speaker is a much faster way to become fluent than reading books. Therefore, a business could state, “Our program will help you learn English 50% faster than other methods.”
Example 5: Increased Sales
If you want to get into your B2B customer’s good graces, focus on how your products can improve sales. You should also be specific by using statistics and data. For example: “Our product allows you to target new customers and increase your sales by up to 30% each year.”
Example 6: Increased Security
Cyber threats are an unfortunate part of doing business online, but that factor makes it a powerful value proposition. First, stress how often cyberattacks occur. Then, say something like: “Our software helps protect your business from cyber threats, ensuring the safety of your data.”
Example 7: Improved Brand Reputation
A bad reputation can have significant consequences on your business, which is why a lot of people will pay to improve it. A typical VP in this category includes: “Our social media platform helps you build relationships with customers, increasing your brand reputation and loyalty.”
In conclusion, a value proposition is a powerful statement that explains how your business can meet the needs of a customer. By creating a value proposition that communicates the benefits of your product or service, you can attract and retain customers and/or prospective employees.
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