Customers are all looking for the same thing: getting the most value from what they’re paying. But getting them to invest in your product can be challenging, especially in the SaaS world, where interesting and new products exist on every corner. That’s why having a strong value proposition is key to attracting customers and differentiating your business from the rest – basically, you have to show your target audience the value of your product and why they should choose you. Easy, huh?
But what are the steps to create your SaaS value proposition? And why is it important? Read on to answer these questions, including:
- What is a SaaS Value Proposition?
- Steps to create your SaaS Value Proposition
- Importance/Benefits of a Good Value Proposition
- Top examples of strong SaaS Value Propositions
- SaaS Value Proposition
Ready? Let’s dive in!
What is a SaaS Value Proposition?
Think of it like this: when browsing in a bookstore without a clear idea of what book you feel like buying, what are you most likely to gravitate towards? The book with a catchy tagline, pretty cover, and clearly defined synopsis, or the one that’s simply sitting in their assigned section? I’d choose the pretty one!
Selling the value of your product is exactly the same. Your audience needs to understand these easy questions right away:
- What your product does
- How it does it better than any other product (so, basically, what makes you unique!)
- Who it’s targeted to
Then, ask yourself: what are you doing differently that might set you apart from competitors? Who benefits from your service, and why do they need you specifically? Once you have these answers down, it’s time to get creative!
Creating a strong and compelling value proposition that encapsulates the value of your product in an interesting way is not easy, but not impossible! Keep reading to learn how to craft the best value proposition for your SaaS!
Steps to create your SaaS Value Proposition
When writing an exciting and strong value proposition, it’s super important to keep your customers at the center of it all. You can achieve this by using language they’ll understand, anticipating questions that might arise, and especially making it clear why your product is different from the rest. Here are some steps you can take to create a great SaaS value proposition:
Step 1. Identify your target audience
First, start by identifying who your customers are and what issues they have that your product will solve. This way, they’ll be getting a clear idea of what you can do for them from the start and will feel the desire to test your product out.
Creating a buyer persona (a semi-fictional representation of your ideal customer) is super helpful in identifying your target! Here you can read more about buyer personas and how to accurately build one.
Step 2. Know where you fit within your market
Identifying your target audience ties closely with realizing and showcasing your core value. Once you know your target audience, it’s time to realize the features of your product that will benefit them. Knowing this will help you create your value proposition, which will, in turn, make your potential customers recognize your product’s value even before trying it.
Step 3. Analyze your competitors
Understanding your competition is also a great way to create your value proposition. You can get incredible insights through product benchmarking, which means evaluating your product’s features, pricing, user experience, and performance metrics to learn what your strengths and weaknesses are.
If you want to learn more about product benchmarking, check out our article on benchmarking and how to optimize your product’s performance!
Step 4. Collect data and monitor the performance
Qualitative data research is a great way to understand what really goes on with your product and what issues need to be addressed as soon as possible. You can do this through A/B testing to get more detailed information, like age, gender, where they’re from, etc. Or with surveys or customer interviews, which will give you first-hand insights into your customers’ relationship with your product. This way, you won’t be basing your actions on assumptions alone, while also adding incredible value to your proposition!
Step 5. Showcase your uniqueness!
Customers need to know that your solution to their problems is the best one out there! So it’s super important to showcase the benefits that are unique to your product and the needs it will be addressing that are unique to your customers. It’s all about individual care!
Importance/Benefits of a Good Value Proposition
But why is it so important to create a good value proposition? By creating one, you’ll start:
- Attracting the right audience and improving your customer loyalty
- Generating easier conversion
- Besting your competition
- Having competitive pricing
- Improving sales and conversion in general
So now that you know what a value proposition is, how to create a compelling one, and why it’s important for your business, here are some of the top examples we love and feel are great for inspiration!
Top examples of strong SaaS Value Propositions
“Music for everyone” – it’s pretty straightforward! With just three words, Spotify’s able to encapsulate what they offer and their values: they’re an online music platform that’s ready to be used by everyone, whenever and wherever. But it doesn’t stop there! With ‘everyone’, they’re also adding the pricing aspect of their value proposition – it can be used by everyone because they offer free and premium models.
Dropbox’s “good things happen when your stuff lives here” creates a sense of security for potential customers. The message is clear: you can rest assured that your files will be taken care of by the platform.
Slack’s way of introducing their messaging platform is a great one: “Made for people. Built for productivity”. It lets you know two things from the get-go: you’ll have a platform where communication between colleagues happens, but keeping the most important thing about your work life intact: productivity.
“All teams. All work. One place”. With ClickUp’s short and sweet tagline, we’re getting a pretty big picture: thanks to this software, everything companies need to get work done (in collaboration or alone) happens in one place – the platform.
Create a Strong SaaS Value Proposition and Stand Out
Creating a value proposition is key to attracting customers and making them understand that your solution is the one they need. By taking into consideration who your product is for and what makes you stand out from your competitors, you’ll be able to create a compelling and strong value proposition that will make your customers choose you without a second thought.
Interested in ways to keep your customers engaged from the beginning? Head over to our blog and learn more about maximizing user engagement!