10 tips for crafting a winning value proposition for your business

Summary

• A value proposition is a clear and compelling statement that highlights why clients should choose your service over competitors.

• Value propositions are specific and focused on why clients should care, while mission statements are broad and inspirational.

• When figuring out how to write a value proposition, being direct and straightforward is essential for clear client understanding.

What is a value proposition?

A value proposition, meaning a clear, compelling statement, tells your clients why they should choose you over the competition. It's about highlighting the unique benefits and advantages your product or service offers. In simple terms, it’s your best pitch wrapped up in a few sentences.

Think of a value proposition as your promise to your clients, explaining not just what you offer but how you meet their needs better than anyone else. 

Here’s a value proposition example: "We provide personalised financial plans to help you achieve your retirement goals with confidence." This clarity and focus can be the key to attracting and retaining clients.

What is the purpose of a value proposition?

The main goal of a customer value proposition is to grab attention and show potential clients exactly what makes you special. It’s like a spotlight on your best features. 

For example, a financial advisory firm focusing on sustainable investing might highlight its extensive expertise in ESG (Environmental, Social, and Governance) investments. This helps clients who want to align their investments with their values to see the clear benefit of choosing that firm.

Value proposition vs mission statement: what’s the difference?

While both are important, value propositions and mission statements serve different purposes. A mission statement explains your company's overall purpose and goals. It’s broad and inspirational. A value proposition, on the other hand, is more specific. It details why someone should do business with you. Think of the mission statement as the "why" and the value proposition as the "why you should care."

Best value proposition tips

1) Clarity is key

If you’re wondering how to write a value proposition, remember that being clear and to the point is crucial. Your potential clients should immediately understand what you’re offering. 

If you offer financial planning services, you might say, "We create customised financial plans to help you reach your retirement goals." No fluff, just the essential information.

2) Evaluate what your competitors are offering

Knowing what your competitors are up to helps you stand out. Analyse their value propositions and find the gaps in their offerings.

If your competitors focus on traditional investment strategies, you could emphasise your expertise in innovative, tech-driven financial solutions. This difference can make you the more attractive option for clients looking for something new.

3) Learn from your existing clients

Your current clients are a goldmine of information. Ask them why they chose you and what they love about your service. Use this feedback to refine your value proposition. 

For instance, if clients appreciate your proactive communication, make sure to highlight that. It’s all about understanding what works and doubling down on it.

4) Decide if you’re going mass-market or niche

Are you aiming for a broad audience or a specific group? This decision shapes your value proposition. A mass-market approach might focus on broad expertise and accessibility, while a niche approach highlights particular knowledge. 

A financial adviser specialising in healthcare professionals can emphasise their deep understanding of that field's unique financial challenges.

5) Are you a specialist or a generalist?

Clients need to know whether you’re a specialist or a generalist. Specialists can emphasise their deep expertise in a particular area, while generalists highlight their versatility. 

A specialist might say, "We provide expert tax planning for small businesses," whereas a generalist could say, "We offer comprehensive financial services to meet all your personal and business needs."

6) Identify all the value you can offer your clients

Make a list of all the benefits your service provides. This ensures you capture every aspect of the value you bring and write the best value proposition for your business. 

If you offer not only financial planning but also tax advice and investment management, make sure your value proposition reflects the full scope of your services. This comprehensive value can attract clients looking for a one-stop financial solution.

7) Get to know exactly who your client is

Understanding your target audience is key. Research their needs, preferences, and pain points. Tailor your value proposition to address these specific concerns.

If your target audience is young professionals, highlight your expertise in navigating student loans and early-career investments.

8) Try to identify the gaps

Look for unmet needs in the market that your service can fill. Identifying these gaps allows you to position your offering as the ideal solution.

If you notice a lack of financial advisers focusing on digital nomads, you can highlight your tailored services for this growing demographic. This makes your value proposition highly relevant and appealing.

9) Communicate return on life (ROL)

Show how your service improves your clients' overall quality of life. Go beyond financial returns and emphasise aspects like organisation, accountability, objectivity, proactivity, education, and partnership. 

For example, "Our financial plans not only grow your wealth but also provide peace of mind, ensuring you can focus on what matters most in life."

10) Evolve your value proposition

Value propositions should evolve over time. Continuously refine yours based on market changes, client feedback, and industry trends. This ongoing evolution ensures your value proposition remains relevant and compelling.

As new financial technologies emerge, update your proposition to reflect how you incorporate these innovations to enhance client outcomes.

Want to work with Unbiased?

The best value propositions are crafted with clarity, market understanding, and effective communication in mind. By following these tips, you can create a value proposition that resonates with potential clients and sets your business apart. Remember, your value proposition is the foundation of your marketing strategy, so make it compelling, clear, and client-focused to attract and retain the right clients.

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