Key components of value-based marketing
There are several elements of an effective value-based marketing strategy.
First, remember that this strategy is customer-centric, not product-centric, so you must identify why your prospects should want or need your product. Your value-based marketing strategy should appeal to existing and new customers.
Here are several things to consider:
Understand customer needs and wants
Before beginning value marketing, you need to know your customers' needs and wants.
Who is your target audience? This will ultimately depend on the types of products and services you sell.
For example, if you sell automation software for businesses, your target audience is any type of business that may benefit from automation. You can start understanding your customers' wants and needs by creating customer personas for each audience segment and identifying the benefits of your products.
Identify customer pain points
Take advantage of your customer personas by using them to identify customer pain points.
Value-based marketing solves a problem by addressing customer pain points. Pain points are problems faced by your target audience.
For example, a company's pain point may be productivity. In this case, you would market the value of your product by solving their productivity issue and focus on identifying ways your product makes businesses more productive. You'd be demonstrating the functional value of your product.
When identifying pain points and determining how your product is a solution, you must provide proof points that back up any claims.
For example, telling prospects that you've increased your customers' productivity by 25% is more powerful than simply stating that your product increases productivity.
Create a unique value proposition
Your company's value proposition is a short statement that communicates the benefits of your products and services to your target audience. It sets expectations, explains what your business does, and how it can help customers.
Investing in value marketing requires a unique value proposition to capture your audience's attention and express why your business is better than the competition.
Value propositions should be specific about the benefits to customers and focus on pain points and solutions. Remember, though, your value proposition is a promise to your customers.
If you can't deliver on your promises, value-based marketing isn't right for you because customers will see through your attempts to sell them your products. So instead, your value proposition must speak to reasons why customers should purchase your products and services.
You should also have a unique selling proposition (USP) that indicates why prospects should purchase your products. It should tell prospective customers why your products are better than the competition.
However, remember that a USP doesn't necessarily highlight the benefits of your products to customers, so you should continue to focus on your value position.
Consistently deliver value
For value-based marketing to work, you must continue to deliver value to your customers, even after they've purchased your product. If your products don't provide value, your customers will stop using them.
Additionally, your marketing should consistently deliver value by giving them helpful tips for using your products to reach their goals and address common pain points.