Let’s talk about the importance of value proposition.
One of the key elements in your banner ad design is the ad copy.
The ad copy should answer the questions: “Why do I need this?” or “Why should I buy this?”. What’s more, it should answer the questions in a compelling, persuasive way.
What’s more, people don’t often buy things because they need them. They buy products and services because of how those will make them look or how those will make them feel.
That’s why your banner ad copy should instantly convey the value the advertised products deliver.
While there are a lot of headline formulas for creating compelling copy for your banner ad, a strong value proposition will be a lot more persuasive.
1. What is a value proposition
Put briefly, the value proposition should explain briefly and clearly how your product addresses customer needs, how it solves problems and improves situations.
It explains the value that will be delivered and one of the main reasons why a customer should buy from you.
Basically, the value proposition answers the question “What’s in it for me?”
There are 3 important characteristics for any good value proposition.
- The value proposition must be relevant for your customers. There’s no point in being different only for the sake of being different. You need to be different in a way customers really care about.
- The value proposition must explain how specific benefits are delivered and how the product is different and better from the competition.
- A good value proposition must be clear, easy to understand. The value proposition needs to talk the customers’ language to show them that it understands their needs.
2. How to write a value proposition
Ok, so how do you develop a good value proposition? First, you need to know your product and its competition very well. Second, you need to know your customer and how he sees the problem your product is trying to solve.
To get a good value proposition, connect the dots.
Or choose one of the most popular value proposition frameworks we’ve included in this article:
a. Steve Blank’s XYZ
This is one of the easiest value proposition templates available. It’s easy to build and hence, easy to understand.
Template: “We help X do Y doing Z”.
Sample: We help designers build animated banner ads at the speed of light.
b. Geoff Moore’s Value Positioning Statement
Geoff Moore is famous for his book “Crossing the Chasm”. His value proposition model has helped a lot of companies communicate clearly and easily the value they convey for their customers.
For ____________ (target customer)
who ____________ (opportunity)
is a ____________(company name)
that ____________(benefit statement)
c. Vlaskovits & Cooper’s CPS
Cooper and Vlaskovits use what they call a Customer-Problem-Solution presentation in Cheat Guide to Customer Development.
Customer: ____________ (who your customer is).
Problem: ____________(what problem you’re solving for the customer).
Solution: ____________ (what is your solution for the problem).
D. Eric Sink’s Value Positioning
Eric Sink’s template is an easy way to explain to your audience how your product or your service works. Read more about it here:
Superlative (“why choose this product”).
Label (“what is this product”).
Qualifiers (“who should choose this product”).
Sample: The easiest operating system for netbook PC’s.
E. Clay Christensen’s Jobs-to-be-done
Clay Christensen’s approach stems from the belief that the value proposition begins with understanding the higher purpose that products fulfill for customers. According to him, people don’t buy products, they “hire” them to address a problem and do a job.
Action verb: _________
Object of action: _________
Contextual identifier: _________.
Sample: “Manage personal finances at home”. (Mint.com)
F. Simon Sinek’s WHY
Simon Sinek is a leadership expert, author of the classic “Start with why” and teaches at Columbia University. He suggests that “People don’t buy what you do; people buy why you do it.” His value proposition template helps companies connect the dots between the why and the what.
Include numbers and percentages in your value proposition.
Numbers make the benefit seem even more tangible and quantifiable, thus making it more appealing for your customers.