Value Proposition For Ecommerce Businesses – How To Sell More Without Lowering Your Prices
Many ecommerce businesses don’t care about their own value proposition and focus too much on the value proposition of their products.
But if the products they sell aren’t unique, we have to tell the visitor why they should buy them from that particular website over others that sell the same product.
Selling online is tough. Your website visitors are just one Google search away from other websites selling the same products as you. That’s an unsettling prospect.
Many retailers respond to this by trying to be cheapest. So even if their visitors do leave and go to a competitor, they know that they are offering the best deal to win the visitor back.
But what happens when the other websites then reduce their prices? It’s a race to the bottom and only the retailers with the biggest buying power win (i.e. Amazon).
[tweetthis hidden_hashtags=”#cro” remove_twitter_handles=”true”]Many ecommerce businesses don’t care about their own value proposition and focus too much on their products.[/tweetthis]
Basing your value proposition around being cheapest
Pricing is a source of stress for many of the retailers we encounter. No one can argue that price isn’t a factor in a customer’s buying decision; but is it the only factor?
An analysis by Granify found that other factors, such as the clarity and strength of the return policy and credibility of customer testimonials, frequently surpassed price as the number one factor.
As Seth Goden said, “Maybe the reason it seems that price is all your customers care about is that you haven’t given them anything else to care about.”
So how do we give them something other than price to care about?
We need a strong value proposition. This is a short clear statement which tells the user what you’re offering, why they should buy from you, or how you’re solving their problem.
Ecommerce Training with value proposition examples
The following training was developed to help online retailers who aren’t yet working with us to develop their own value proposition.
In the training we talk about how to create what we call a ‘strategic’ value proposition. This is a value proposition which is strategically aligned to your ideal customer.
We also explain how to identify your ideal customer and where to put your messaging once you’ve developed it.
The training includes examples of value proposition statements and sample ideal customer profiles.
If you’d like help creating your value proposition or you’d like to know how we can help you improve your ecommerce website’s conversion rate, call 0161 236 1188. You can also request a website Profit Leak Audit here.
10th May 2016