{"id":6753,"date":"2013-07-09T22:57:56","date_gmt":"2013-07-09T17:27:56","guid":{"rendered":"https:\/\/vwo.com\/blog\/?p=6753"},"modified":"2025-04-28T13:45:52","modified_gmt":"2025-04-28T08:15:52","slug":"value-proposition-for-higher-conversion-rate","status":"publish","type":"post","link":"https:\/\/vwo.com\/blog\/value-proposition-for-higher-conversion-rate\/","title":{"rendered":"Optimize Your Marketing Efforts with a Killer Value Proposition"},"content":{"rendered":"\n

All marketers believe that their product offers value to potential customers\u2014that it is worth the money they invest to have the product or service. But many businesses struggle to convert customers<\/a> because they don\u2019t have, or don\u2019t understand how to communicate, real competitive advantage. <\/p>\n\n\n\n

There is a simple way to boost marketing efforts that many marketers miss, or haven\u2019t dug deep enough to find out. This is the customer value proposition (CVP) or unique selling proposition (USP). <\/p>\n\n\n\n

Download Free: Conversion Rate Optimization Guide<\/span><\/a><\/em><\/h2>\n\n\n\n

When you want to establish an edge over your competitors, you need to go beyond the usual approach and explicitly answer the \u201cWhy should I buy from you?\u201d question for your prospects. To be precise, you need to have a USP if you want to stay ahead of the curve.<\/p>\n\n\n

What is, and isn\u2019t a customer value proposition?<\/h2>\n\n\n

At its core, the CVP is a clear statement that effectively conveys to the target audience why they should make a purchase. It succinctly sums up the value the product represents to them. This value is based on tangible and intangible benefits that the product provides, or the problem it solves for them. But a USP is not a slogan. For example, LG\u2019s \u201cLife\u2019s Good\u201d is not a value proposition. It\u2019s a tagline that communicates the brand but doesn\u2019t convey anything about the product. A USP should clearly answer the question \u201cwhy should I buy this and not something else?\u201d <\/p>\n\n\n

How does a customer value proposition impact marketing?<\/h2>\n\n\n

The CVP plays a crucial role in a business model. It sets the expectations for customers and is the promise that your business follows through with. Thus, the CVP impacts all your marketing efforts, setting the foundation for the customer experience.<\/p>\n\n\n\n

Given below are some other diagrams that show value proposition<\/a> as one of the fundamental factors for a successful conversion optimization setup:<\/p>\n\n\n

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\"LIFT
Image source: Wider Funnel<\/a><\/figcaption><\/figure>\n<\/div>\n\n\n

The LIFT model<\/a> is a great way to understand the key factors that determine conversion rates<\/a> on websites. Of the six main factors, the value proposition is the key influencer. The other elements can either help or hinder the USP (Unique Selling Proposition).<\/p>\n\n\n

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\"Conversion
Image source: Marketing Experiments<\/a>
<\/figcaption><\/figure>\n<\/div>\n\n\n

The conversion sequence formula Marketing Experiments is useful to understand how CVP impacts conversion.<\/p>\n\n\n\n

C = Conversion, M = The level of visitors\u2019 motivation that matches with the offer, V = The clarity of your value proposition, I = Incentives to reduce friction, F = Friction faced in the buying process, A = Anxiety in the buying process<\/p>\n\n\n\n

Although motivation of visitors plays the most important role in the entire sequence, this element is influenced by outside factors. So, the next important factor and the one that you can control is the USP or value proposition.<\/p>\n\n\n\n

So having an effective USP has the potential to dramatically improve your conversion rate. <\/p>\n\n\n\n

But many marketers shy away from a value proposition because it can be difficult to identify a \u201ctrue\u201d USP. A\/B Testing<\/a> is a great way to find a USP that works for your company. Find out more about A\/B testing and try it out for free here<\/a>. Now let\u2019s delve into how you can determine the unique selling point for your company, product, or website.<\/p>\n\n\n

How to create a killer value proposition<\/h2>\n\n\n

First things first. Tell me, what\u2019s it that makes your business unique for your ideal customer that you become an obvious choice for them? Maybe you give free shipping to remote locations? Perhaps you offer a hassle-free returns policy? All this is awesome. But these are \u201cvalue-added\u201d services. And it\u2019s likely that someone in your industry might be providing them already. And if not, they could catch up soon. We must go deeper to find a truly unique and powerful customer value proposition.<\/p>\n\n\n

What\u2019s your competitive edge?<\/h2>\n\n\n

For a compelling value proposition, you must have that *ONE* distinct area where you are different, distinct and superior to competitors. And it has to be something that your customer cares deeply about.<\/p>\n\n\n\n

For example, if you are a VWO customer, you probably know (and hopefully love!) our built-in heatmap feature<\/a>. It adds real value for our customers who are always A\/B testing their sites. Plus, none of our competitors provide this feature, which gives us a true competitive edge in the industry.<\/p>\n\n\n\n

While having similar features as your competitors qualify you to be a part of the game, it is that one distinguished *core* value that will make you the winner. And it is this distinction that creates your USP.<\/p>\n\n\n\n

Additionally, here’s a webinar that could prove invaluable, especially if you find yourself navigating a space with some heavy-hitting players.<\/p>\n\n\n\n

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