Crafting a Value Proposition – Whiteboard Wednesday

Crafting a Value Proposition – Whiteboard Wednesday

In this Whiteboard Wednesday from Links Web Design, Lenny Ford explains how to craft an effective value proposition for any website landing page.


Video Transcription:

Hey everybody, Lenny Ford from Links Web Design.  
 
You see I’m wearing my jacket today, up here in Maine it gets cold more often than not.  
 
Today we are going to talk about a hot topic.  Value proposition.  What it is.  How to craft one and where it belongs on your site.  
 
Your value proposition is probably one of the most important things on your site.   It tells clients why they should choose you.  Being one of the most important things you want to make sure that on your website it’s really noticeable.  It’s probably going to be one of the first things we want to see on your site.  
 
I’ve done a search in Google, and it lead me to your site and now I want to know why I should choose you over the other links that were in the search result.  Which I may be able to really easily click the back button and go back to.  We don’t want that.  We want to keep them there and drive them to take the next step. 
 
Value proposition can be kind of boiled down to creating motivation.  Motivation is the perceived benefits of your product or services minus the perceived cost.  It says perceived because it’s individual.
 
Client A may think the perceived benefits are much higher than Client B and it’s relative.  That can be a sliding scale and it’s arbitrary.  You can kind of get a sense of it by saying let’s say it’s on a scale of 1-10.  Their motivation is equal to the perceived benefits.  
 
Let’s say your product or service has really good benefits to them and it’s an 8.  The cost is relative and it’s pretty good so it’s a 4.  8-4 is 4 is going to give us a motivation level of 4.  Out of 10.  We can also go into negative numbers.  The benefits are good, their a 5, the cost is really high it’s a 8.  Now the motivation level is -3.  I like your product, I like the benefits but it costs way too much.  
 
The idea here is we want to create a value proposition that is important and appeals to the potential client.  How do we do that?  Well we have to look at it from the standpoint of what’s in it for me.  WIIFM.  What’s in it for them?  They don’t care about you; they don’t care about your company – at this point.   We want to make sure that they understand that there are actual benefits to them directly.
 
What’s in it for me is all your features and all your benefits combined.  But we can’t give them all of that at one time.  That would just overload them; it’s way too much.  So we can’t do that all at once.  We have to focus on one thing.    What you want to focus on is the most important feature or benefit to the most important type of client that you can get.  Depending on what that is it’s going to change for everybody.  So how do you know?  
 
You’ve got to test.  That’s the only way to figure it out.  So basically you may have to launch your website with one value proposition.  If that doesn’t do well you can kind of tweak it and work on it and change it and watch your results.  That’s really the best way to find out the knock them dead value proposition.
 
One good place to start is right here.  I’ve made this nice little Venn diagram for us.  There are 3 things going on here.  We’ve got the desires of our clients, that’s the center circle.  We’ve got our competitors features and our features and they all intersect at different points.  Starting right out in dead center where the client’s desires, our features and our client’s features all mesh together.  That’s called points of parity.  
 
It means that it’s shared with your competitors and it’s the price of entry.  So you can’t say clients want to work with us because we have the best customer service.  Nope.  Everybody has the best customer service.  That’s the price of entry; you have to have that if you’re going to survive.  So that’s out.  That’ can’t be our value proposition.  Then we have where our features and where our competitors features overlap.  Those are points of irrelevance.  Features your clients don’t really care about because again both you and your competitors have them.  And they don’t mesh with my desires.  That’s outside my client desire circle.  I don’t care about those features, both of you have them they are irrelevant.  
 
What does that leave us with?  That leaves us with the section where our client’s desires and our features overlap.  That’s the point of difference.  This is where we win.  This is where we differentiate ourselves from our competitors.  So that’s a good place to start.  Kind of think out what those are.  And you can even draw this nice little Venn diagram and list these things out so you can get those in a really clear and concise list for yourself.  Then you want to craft a value proposition based on what you find are your points of difference.  Again you may end up with 4 or 5 value propositions. You’ve got to figure out which one is going to appeal to the most important client.  
 
Again, I say you want to focus on the most important client because you have your whole website to focus on all the myriad of details.  The small features, small benefits that will appeal to the less important client.  These are the clients that are predisposed to buy already or maybe they’re the people who aren’t providing as much profit as the most important client is.  
 
You take that and put it all together and what do you do with it?  Well, you usually want to prompt for an action.  After you’ve given them the value proposition pair it with a call to action.  We’re going talk a little bit more about call to action next week.  We’ll give you that full picture.  So you want to pair it with it.  It works really well.  In today’s design you usually see these right top of the page over a big image, big value proposition, a little call to action right there nice bold color.  It prompts you to take that next step.  
 
Finally don’t make assumptions.  Test.  If you assume this is the right value proposition, set it and forget it.  It’s not going to work out for you.  Make sure you’re testing and iterating all the time.  It’s the best way to make sure your that your website succeeds.  
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Links Web Design Is A Website Design Company In Bangor, Maine.