What is unit value
proposition
(how to engineer it)
2Day, Session1
Tijana Sekulic
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What the value proposition consists of
The value proposition is usually a block of
text (a headline, sub-headline and one
paragraph of text) with a visual (photo,
hero shot, graphics).
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www.luxyhair.com
As a fashion brand, Luxy Hair relies more on visuals. The image here
was
(remember that images can
be inacooperation
partwithof the
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value proposition), a subtle promise to make your hair just as beautiful.
Scrolling down, the site highlights that Luxy has seen heavy coverage in fashion
magazines and continues with copy that explains how their hair extensions will
make hair look great without glue, waxes, or wastage (environmentally conscious
buyers will love this point of difference).
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What the value proposition consists of
There is no one right way to go about it, start with the
following formula:
 Headline. What is the end-benefit you’re offering, in 1 short
sentence. Can mention the product and/or the customer. Attention
grabber.
 Sub-headline or a 2-3 sentence paragraph. A specific explanation of
what you do/offer, for whom and why is it useful.
 3 bullet points. List the key benefits or features.
 Visual. Images communicate much faster than words. Show the
product, the hero shot or an image reinforcing your main message.
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Evaluate your current value
proposition by checking
 What product or service is your company selling?
 What is the end-benefit of using it?
 Who is your target customer for this product or
service?
 What makes your offering unique and different?
 Use the headline-paragraph-bullets-visual formula to
structure the answers.
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How to create value proposition?
The best value proposition is clear:
what is it, for whom and how is it useful?
If those questions are answered,
you’re on the right path.
Always strive for clarity first.
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What makes a good value proposition:
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Clarity! It’s easy to understand.
It communicates the concrete results a customer will get
from purchasing and using your products /services.
It says how it’s different or better than the competitor’s
offer.
It avoids hype (like ‘never seen before amazing miracle
product’), superlatives (‘best’) and business jargon (‘valueadded interactions’).
It can be read and understood in about 5 seconds.
Also, in most cases there is a difference between the value
proposition for your company and your product. You must
address both.
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Boosters for your value proposition
Sometimes it’s the little things that tip the decision
in your favor. If all major things are pretty much the
same between your and your competitors’ offer, you
can win by offering small value-adds, call boosters.
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Boosters for your value proposition
These things work well against competitors who do not
offer them. Boosters can be things like
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Free shipping
Fast shipping / Next day shipping
Free bonus with a purchase
Free setup / installation
No setup fee
No long-term contract, cancel any time
License for multiple computers (vs 1)
(Better than) Money-back guarantee
A discounted price (for a product)
Customizable
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 You get the idea. Think
what small things you
could add that wouldn’t
cost you much, but could
be attractive to some
buyers.
 Make sure the booster is
visible with the rest of the
value proposition.
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 Very clear what it is and for whom
 Specific lead paragraph
 Key features outlined above the fold
 A relevant image
 Features a booster – “100%
rebrandable”
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 Clear statement about what it is
and for whom
 List of benefits
 Relevant image
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 A different kind of layout, but well done. It
tells a story of ‘what’ and ‘how’ . Easy to
follow.
 Key features / benefits listed along with
relevant imagery
 ‘Remember everything’ is a good slogan,
and specific sub-headline underneath it
for improved clarity.
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Testing value propositions
You definitely have to test your value proposition. How?
1. A/B testing
 The best way is to craft 2 candidates (or more, if you
have tons of traffic) and split test them. Ideally you
would measure sales conversions (for most accurate
results), but if that is not possible lead conversions or
even clickthroughs will do.
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Testing value propositions
You definitely have to test your value proposition. How?
2. Pay per click advertising
A fast and cheap way to go about it is using Google AdWords or Facebook ads.
Basically you would split test ads with different value propositions, targeting the
same customer. The ad with higher CTR (clickthrough rate) is obviously a better
attention grabber and interest generator, although it doesn’t necessarily mean
higher sales conversions.
Send the traffic to a corresponding landing page and test conversions too.
What are some of the better value propositions you have
come across?
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Testing value propositions
You definitely have to test your value proposition. How?
2. Pay per click advertising
A fast and cheap way to go about it is using Google AdWords or Facebook ads.
Basically you would split test ads with different value propositions, targeting the
same customer. The ad with higher CTR (clickthrough rate) is obviously a better
attention grabber and interest generator, although it doesn’t necessarily mean
higher sales conversions.
Send the traffic to a corresponding landing page and test conversions too.
What are some of the better value propositions you have
come across?
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Where Does Your Value Proposition
Come From?
Look at the weaknesses of
your competitors & ask yourself:
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Is your website easier to use?
Can your product be better tailored to the market?
Do you have a kick ass customer service team?
Is your return policy or customer guarantee superior?
Are your prices lower?
Do you have faster shipping options?
Realistically, there will be
Is your atmosphere better?
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problems you can’t solve.
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You Are Not The Products You Sell.
More importantly, this value proposition establishes the garage as the
“just one hour ”guys.” Speed of service” is what they’re selling.
Similarly, Domino’s never claimed to be
“The Best Pizza You’ve Ever Tasted.”
Instead, they understood when someone wants pizza, they want it now! They
built their business on
“You get fresh, hot pizza, delivered to you in under 30
minutes – or it’s free!”
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Four types of consumer benefits
1. Best quality
Richard Branson once said that being the best at something is a pretty good
business model.Think of brands that set a standard, like …Stradivarius violins.
You don’t have to be a sports nut to have heard of the 125-year history of the
Louisville Slugger, nor do you have to be a classical music aficionado to have
heard of the legendary Stradivarius violins. Brands that set standards are
sometimes luxury brands, but not necessarily. You don’t need luxury to set a
best-in-class standard. Brands like Benjamin Moore define quality in their
categories. That’s an enviable position and a value proposition that works.
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Four types of consumer benefits
2. Best bang for the buck.
Recessionary woes have amplified the fact that some consumers will always
buy on price. Best-in-class value doesn’t always mean lowest price, however,
but rather the best quality-to-price ratio. Jet Blue is a good example of a
company that, though it may not offer the cheapest or best in comfort travel,
does a good job of communicating its value relative to its price point. Dell,
Chipotle, Ikea, and Toyota are other good examples of best-in-class value, and
their value propositions have been sustainable through the years. Incidentally,
the founder of Ikea, Ingvar Kamprad, has regularly traded places with Bill Gates
on various world’s richest lists.
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Four types of consumer benefits
3. Luxury and aspiration.
On the other end of the spectrum from bang-for-buck players are luxury
providers that promise the experience of a wealthy lifestyle to
aspirational consumers. Ralph Lauren is one of the masters of a lifestyle
luxury brand; others are Rolex, BMW, and Hermes. While the luxury
segment was hurt during the downturn, it is almost certain that as the
economy rebounds that customers will return to luxury goods as their
discretionary spending increases.
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Four types of consumer benefits
4. Must-have.
One of the most attractive value propositions we have seen and studied
are the “must-haves.” These include basic goods — certain foods, for
instance. During my prior work with Thomson Reuters, we often talked
about “must-have” content that business professionals could not do their
jobs without. The critical legal information and tools WestLaw provides to
lawyers are an example. As long as there are legal cases, there will be a
need for legal information. It does not mean there will not be
competition, but if the category you are pursuing is must-have, then the
market leaders will have a great prize to share.
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exercise
Write an ad for the
local Newspaper
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The title is "Seeking the customer"
Text ads in 2 rows
No mention of what you are doing
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