“How to define a value of a product we see if it’s non-unique.”
If you want to make your business better, you should know that it’s important to explain customers the value of owning your product. But it may be difficult to start as you have many competitors and they sell the same products. It may seem that everything you could say about value is already said.
This article studies the processes and peculiarities of thinking which are necessary for creation of a value proposition for an oversaturated market.
If you’re not alone, it’s not that bad
According to reports by Ernst & Young, these are 4 the most popular goods categories for customers:
- everything concerning computers (40%)
- books (20%)
- tourism goods and services (16%)
- clothes (10%)
If you sell goods from one of the above-mentioned categories, you know that competition on this market is quite high. However, the advantage is that your potential buyers have existing behavior patterns on these markets. And this makes an interaction between you and your clients easier.
Despite the fact that competition in your sector is huge, you competitors don’t know what to do either. The more competitors you have, the more data about a market you have. The more data you have, the more precise analytics you get. It means that you’ll have more ways to win this race.
You won’t become unique, unless you know what your competitors are doing
It’s necessary to analyze competitors not to copy what you think “works”. Vice versa, the analysis is needed to find “narrow places” in your competitors’ work and your strengths connected with them.
The quickest way to find them is SWOT-analysis on you and your direct competitors.
If you have never heard of SWOT matrix, here’s a list of the most popular brands and results of a SWOT-analysis for them that will help you to start.
What’s in the basis of your value proposition?
Your value proposition should be based on what you can do better than your competitors. Look at your competitors’ weaknesses and ask yourself the following questions:
What if:
- your website is easier to use?
- your product conforms to market requirements better?
- you have an exceptional team on work with customers?
- your terms of return or guarantee are better than that of your competitors?
- your prices are lower?
- you offer quicker ways of shipping?
- you create a friendlier atmosphere for a client?
If your value proposition allows to make your advantages evident for a customer, you’ll be a step forward as others will continue competing on the basis of possibilities only.
You’re more than products you sell
Gregory from HelpScout offers this gorgeous example of a unique value proposition for a car repair company (another oversaturated market) which has lead to a conversion increase by 58%.
Gregory says: “The first value proposition isn’t concentrated enough on what a user will get. Adding “in just one hour” to the second proposition allows to underline a unique advantage which makes a customer understand why he/she should use this very service.”
What’s more important is that a value proposition makes specialists of guys in a garage who are ready to repair a car quickly. They sell the speed of service rendering.
What user experience do you sell?
This infographic by Invesp (made on the basis of data from eMarketer and Internetretailer.com) shows 7 main reasons why users buy online. Here they are:
- low prices (38%)
- convenience (35.1%)
- easy to compare goods and prices (33.1%)
- free shipping (31.5%)
- saves time (30.8%)
- simplicity of purchasing (29.2%)
- wide choice (17.4%)
Don’t try to include all these things to a value proposition as it’s not that easy. Some of them you can replace by others and the rest of them you can leave out, so be watchful: it’s the place to search for your unique value proposition.
Low prices
Nobody wa
nts to make a race for the lowest price. Instead of shouting about the lowest prices, convince your customers of it by offering to compare the lowest price of your definite competitor with your value proposition.
“The best prices for HD TVs. Find cheaper at competitor and we will decrease the price for you.”
Or your value proposition should underline your excellent quality of service.
Forrester has carried out an investigation in which 4 600 people were polled. Respondents were asked what was more important for them: “great service” or “low prices”. According to the results of a poll, service has won.
Convenience of making purchases
Customers make purchases in time and places most comfortable for them.
As a rule, comfort means that good recommendations have led a customer to the website or the website had convenient and simple navigations and pages load quickly.
All these things are very important but the key moment of a value proposition oriented on convenience of making purchases may become an easy access to your website no matter where your customer is.
Mobile eCommerce demonstrates sure growth and changes our customer behavior online. If your competitors don’t work with the sector and you traffic confirms presence of “mobile” customers, you should think of a mobile site version. If you are able to enter a mobile sector before your competitors, it means that you already have your value proposition.
Simplicity of goods/prices comparison
While shopping, people usually compare. An average user visits 3 websites before making a purchase and will likely spend more on websites he/she visits more often.
If your advantage is a price or additional possibilities of your product, add a functionality that allows to compare various offers – as a bonus. Here are some examples of such comparisons
It’s unlikely that possibility to compare goods will be the basis of your value proposition, but if a market is oversaturated, it’s a great way to enhance your value proposition.
Free shipping
“Despite the reason, a free shipping which saves $6.99 is more appealing for a customer than a $10 discount.”
A Free shipping is another bonus which may not become the basis of your value proposition. It will only enhance your value proposition. Free shipping is important. 47% of customers point out that they would cancel an order if a shop doesn’t offer a free shipping.
There are many ways to offer a free shipping: it can be free every day for everybody, or during holidays, or when a customer reaches a definite sum of a purchase.
Here’s what Big Commerce thinks on adding a free shipping to your value proposition:
“A free shipping may help to increase an average check by 30% in several months. You just need to compare an average check and average expenses on shipping and then offer a free shipping when a check exceeds an average sum by 10% and in any other case when an order sum covers your average expenses on shipping and gives a possibility to increase an average check.”
Time economy/simplicity of shopping
We all want our goods to reach clients quicker. Here are 2 ways for it. The first one is to organize regular goods shipping to a client with the help of subscription. Amazon has presented Subscribe & Save program which can save up to 15% for clients and allows to get the most demanded goods delivery automatically.
Such a value proposition sells an idea that you don’t have to spend time on purchasing boring but necessary goods.
The second way to organize simple and quick purchases is to use product recommendations.
This case by 4-Tell.com tells about how SmartPak Canine has increased income by 36% by implementing a system of product recommendations.
Wide range of goods
Wide range of goods is important so that you can satisfy your clients’ needs. But you don’t have to offer all existing goods.
Let’s look at Torrid online shop for plus-size women. Their value proposition sounds not like “We have the widest choice of clothes” but like “We have nice clothes of your size” which is very important for bi sizes.
How do I know that my value proposition is successful?
Having analyzed your competitors and found your niche, all you need is to write a value proposition.
Test it with the help of Facebook or Google ads aiming at your competitors’ traffic and placing your value proposition on the most visible place of your landing page.
If you want to start working without testing inside a company, use the process of copywrite evaluation in order to set a tone and format to your value proposition before you start spending money and segmenting traffic.
Conclusion
The process of creating a value proposition for an oversaturated market may be quite difficult and tricky. But in reality, while others copy someone’s design or website structure, you will study things that many people neglect. You will be able to outrun your competitors where they don’t expect it. So don’t be afraid and test your idea.