Value Proposition for Your E-Commerce Business
Your online store’s value proposition is the reason why customers purchase your goods or services. You may have more than one value proposition since different parts of your solution may be valuable to different client segments. The so-called elevator pitch requires you to be able to convey it in 30 seconds. The items or services you sell as an eCommerce business owner are an important part of your value proposition.
But it's not simply about those items or services. Pricing tactics, promotions, volume discounts, rewards points, free delivery, customer service, product content, availability, return policies, industry knowledge and experience, and many other things all contribute to the value you give.
In this blog, we will look at a few of these components and see how they work together to create your total value offer.
What is a value proposition?
Simply said, a value proposition is a description of the various ways in which you give value to your consumers. It responds to a key question that every eCommerce client has: "Why should I buy from you rather than your competitors?"
It explains how you address significant pain areas for potential consumers and how you enhance their customer experience by providing additional value. It can relate to particular advantages, such as free delivery, or to more broad emotional responses, such as comfort and convenience. Amazon, for example, addresses the underlying problems of limited product selection and sluggish shipment by offering a broad range of items with fast delivery.
But it also adds a slew of other services, such as one-click delivery, gift wrapping, time-saving capabilities like wish lists and bookmarked products, and an appealing reward program, to further enhance the consumer experience (Amazon Prime). Your value proposition will be articulated on a practical level as a short statement outlining the issues your shop addresses, placing yourself against the competition, and emphasizing essential characteristics.
But it also adds a slew of other services, such as one-click delivery, gift wrapping, time-saving capabilities like wish lists and bookmarked products, and an appealing reward program, to further enhance the consumer experience (Amazon Prime). Your value proposition will be articulated on a practical level as a short statement outlining the issues your shop addresses, placing yourself against the competition, and emphasizing essential characteristics.
Product selection and pricing strategies
The most crucial aspect of your product strategy is ensuring that your items fulfil the demands of your target market. If you offer fashion accessories to women between the ages of 18 and 25, you should look for goods that are cheap, fashionable, and associated with younger celebrities. If your consumers are budget conscious, you may want to consider carrying generic brands or private label goods at reduced retail costs.
What makes a good value proposition?
So, how can you create a "game-changing" value proposition? Below is a detailed description of the procedure. But first, here's a quick checklist to set you on your way to that winning combination:
It should address your target market directly — A strong grasp of your market's psychographic and demographic information is the foundation of an effective value offer. For example, products, pricing points, and extra perks that appeal to millennials are unlikely to appeal to baby boomers. Always start with accurate information about your target market.
It should contain what customers expect from eCommerce businesses in your area - What do customers anticipate from eCommerce retailers in your area? Do you recognize your clients' voices? The most significant benefits that customers take for granted should be replicated in your value offer. You'll be at a competitive disadvantage if you don't include these features. Most successful online shops, for example, provide fast shipping, a simple returns policy, and a rewards program.
At least one distinct USP should be included in your value offer — One of the most powerful aspects of your total value offer is the benefit supplied by your USP. Whether it's the opportunity to buy high-ticket items for a low price like Warby Parker, simple wholesale purchasing like Alibaba, or a wide range of products like Amazon, you should include at least one USP that sets you apart from your rivals.
Your "value mix" should be one-of-a-kind – While you may provide many of the same advantages as other merchants, your "mix" should be distinctive. What sets you apart from other retailers?
It should be self-evident — When a potential consumer sees your value offer, they should say to themselves, "Wow, that's great!"
Procedures
Define your market's issues and joys – Note that both problems (such as high shipping costs and restricted product selection) and delights are included. A good value proposition provides clients with more and more "delightful" advantages in addition to relieving pain. For example, many firms now contribute a part of each transaction to charity. This does not fix a big problem, but it is a pleasant bonus.
Concentrate on markets that are underserved – Include components in your value offer that appeal especially to underserved markets, and you'll be able to capture those "easy wins" and dramatically expand your prospective client base.
Include unique selling propositions - What services do you offer that are only available through your eCommerce store? What specific value do they give, as well? For example, Warby Parker gives clients five pairs of spectacles to try on, giving them more hands-on options than rivals.
Create a value proposition statement — It all boils down to your value proposition statement. It's time to condense everything into a few lines once you've outlined the problems you solve and the advantages you give, taken into consideration underdeveloped markets and defined your USPs.
Testing
Here's a huge one that a lot of folks miss! It's critical to test your value proposition once you've put all the parts together:
Conduct A/B split testing on-site – Split-testing alternative offers and messaging to the same segments helps you to zero in on your most in-demand value proposition, which is especially useful if you're torn between two possibilities or your existing offering needs to be more succinct.
Set up a focus group — One-on-one feedback is frequently the most effective approach to validate a new value offer. Organize a focus group of your ideal customers and ask them whether your value proposition helps them solve their problems.
To put it in a nutshell
Finally, whether your value proposition is based on providing the "lowest prices every day," the "largest selection on the planet," or simply "guaranteed your satisfaction on every transaction," it's critical to have one and to convey it to your consumers and prospects. There is no such thing as a good or bad value proposition. However, be aware of yours and verify that it is consistent with the rest of your company plan.
Store credit for rewards, refunds, returns, and exchanges. Keep the money in the store when refunding.