In the competitive business environment of 2023, having a great product is table stakes for building a profitable business at scale.
Many companies have great products, but struggle to keep the lights on. While many factors determine whether a business thrives or shutters, your market positioning strategy plays a critical role.
A few years ago, I launched a kind of “Groupon deal for musicians.” I gave away $1,250 worth of products, including recording time and iTunes distribution, for just $69.
I had spent four months building it, and invested a significant amount of my personal savings into ensuring the campaign was everywhere.
It had to work, and I obsessed over conversions. This obsession paid off when I managed to increase conversion rate from 2.5% to 10.8%.
Your brand’s value proposition is a promise of value to be delivered. It’s the primary reason a prospect should buy from you.
It’s also the #1 thing that determines whether people will bother reading more about your product or hit the back button. On your site, your value proposition is the main thing you need to test—if you get it right, it will be a huge boost.
What if there were a method—even a process—that you could apply to increase website sales? Wouldn’t that be swell? Well, there is.
I’ve turned it into a checklist.
Back in 2016, I read a book called Sprint by Jake Knapp, founder of Google Ventures. Knapp talks about focusing on only the essential activities for shipping new products and testing new ideas.
As advocated in the book, I felt the idea of using restraint would help me quickly execute on new ideas. And so, the concept for a digital PR service was born. The goal was simple: validate demand or move on.
We see somewhere between 4,000 and 10,000 marketing message per day. To get conversions, you must first grab attention, and the headline is what everyone sees first.
An average website has a sales conversion of 1% to 2%. So it’d be fair to say that on most sites more than 95% of visitors don’t buy anything—especially on their first visit. So instead of trying to sell them right away, we should capture leads (i.e. emails) instead.
Humans are value-rating machines. Every day, all day long, we size up different decisions by appraising the value proposition of that action.
Should I buy this product? Sure, that’s the obvious one. But also:
- Should I go to lunch with this person?
- Should I open this email?
- Should I even spend the time to ponder this decision?
When most marketers think about a value proposition, they’re thinking of the 10,000-foot-view—an overall company value proposition. This can make them feel powerless, especially in a large organization. The CEO controls the company value prop. What can you do?
“How do I come up with a unique value proposition? What I sell isn’t unique.”
If you’re working on improving your business, you know there’s no shortage of information about why you need a unique value proposition.
You’ve probably even seen a handful of solid examples, but when you go to write your own, you hit a wall.
You’ve got too many competitors, they’re selling the same stuff, and it looks like all the good value propositions are taken.
What can you do? What should you differentiation strategy be?
There are already a bazillion resources out there that spell out how to “craft the perfect value proposition.” In fact, the whole concept of “unique value propositions” (UVPs) is — at least at first glance — really Marketing 101 material.
So why keep talking about it? For one very good reason:
Most courses & books on value propositions FAIL to show you how to actually create value proposition through empirical, quantified research.