Hot or not? Rate your value proposition with these 8 tests

Is your value proposition the best it can be? If not, you are missing out on opportunities to attract and retain customers, increase sales, and improve profitability.

When you have a good value proposition, your target customer can easily see how your product or service will improve their lives. When you have a great value proposition, they are compelled to buy now and tell others about you.

Here are eight simple tests to help you know if your value proposition is setting your company up for maximum success or holding you back.

Test 1: Can you explain it to a fifth grader?

A good value proposition should clearly communicate what your product does and for whom. If a fifth-grader can understand, it's probably clear. If not, it's time for another look.

Test 2: Does every team member get it?

Make sure every team member understands your value proposition and is on board with it. If it is unclear to your team, you need to massage the message until it sticks.

Test 3: Could someone tell a friend or colleague?

Imagine someone visiting your website or chatting with one of your team members. Would they know who benefits from your product and be able to tell a friend or colleague? (Bonus points if they would be excited to do it.)

Test 4: Will a potential customer remember it next week?

The strongest value propositions are memorable. If a potential customer isn't likely to remember what makes your product so great, you're probably not done fine-tuning yet.

Test 5: Do your prospects have an aha moment?

When a qualified prospect hears your value proposition, they should say to themselves, "This is it! This is what I need." If that's not happening, either you need to refine your message or rethink your product.

Test 6: Are conversion rates above average?

If you're seeing a higher conversion rate than your industry, that's a good sign that you've dialed in your value proposition. If you're falling short, look at your value proposition again.

Test 7: Is revenue going up?

If you're making more sales with the same marketing budget, your audience is probably feeling as though they've discovered what resonates with them. Well done.

Test 8: Do you review your value prop regularly?

Revisit your value proposition at regular intervals. It is the cornerstone of your marketing strategy and should be continually adjusted as market conditions and customer needs change.