1. Creating a Value Proposition

What is a value proposition?

In marketing speak, a value proposition is a service, feature or innovation which makes your company or product attractive to customers. It’s why clients are going to choose you.

A strong value proposition should tell your clients 3 things:

• What benefits your product or service delivers.
• How it delivers benefits (in terms of quantified value).
• Why clients should choose you over your competitors.

How do I write a value proposition?

A value proposition should be written in clear language. It needs to be short, snappy, and easily understood by your prospective clients.

Imagine you’re talking to a stranger. You should be able to communicate your value proposition in a way they understand; and it shouldn’t take more than 30 seconds. In writing it should only be 2-3 sentences.

Avoid technical buzzwords and product jargon at all costs. Your value proposition needs to resonate with all potential clients - even those who know nothing about you.

What are some examples of value propositions?

WordStream's blog has some excellent examples of value propositions that work. For example, this value proprosition from Slack has helped them dominate the workplace productivity space:

Or for more inspiration, check out Lean Labs 25 value proposition examples.

Refining and understanding your own value proposition is crucial before you develop your marketing strategy. Use it as a mantra at every stage of your planning process.

Stick it on your fridge, teach your parrot to say it, get it tattooed (ok maybe not). But do take practical steps to keep your business value proposition in mind.

2. Understanding Market Segmentation

Now that you have a powerful value proposition, it’s time to explore market segmentation.

Imagine you’re standing at an archery range, blindfolded. You fire off a bunch of arrows and simply pray you’ll get lucky enough to hit the target. Market segmentation is designed to remove that blindfold.

Market segmentation involves splitting your potential consumers into smaller groups or segments, based on various factors - age, gender, location, interests, industry, occupation. It’s the first step towards concentrating your marketing efforts on the right people.

How do I write a value proposition?

There are 3 key reasons why market segmentation plays an important role in finding new clients.

• It’s cost effective. By targeting the right segment through careful selection, your client conversion rates go up and your expenses go down. No more wasting money on people who are unlikely to become customers.
• It helps identify opportunities. By segmenting the market, you will often discover new market niches that were not immediately obvious.
• It gives you a competitive advantage. With market segmentation you specialise in a certain niche and are focused on a more defined target. Your marketing becomes streamlined and powerful.