Why Startups Must Tirelessly Communicate Their Value Proposition If you run a new business, make sure customers understand what makes you unique.
By Lucas Miller
Opinions expressed by Entrepreneur contributors are their own.
Most business owners love what they do. Unfortunately, much of the world doesn't necessarily care, as reflected in the high failure rate among startups. Unless entrepreneurs convince people that what they're selling is absolutely special, consumers will simply choose alternatives that are more widely available. Entrepreneurs, therefore, must reiterate their company's value proposition, i.e. a feature or attribute that makes a product or service appealing to customers.
Secondly, people's attention spans have become extremely monetizable, especially online. More than half of business professionals said a great story captures their focus and keeps them engaged, according to Prezi's 2018 "State of Attention" report. And 33 percent of respondents said that visual stimulation is critical to maintaining their attention. And that mind share should be converted to revenue.
Startups that capture interest are in the best position to convert audiences into buyers. On social media, business websites and distribution sites (e.g. Amazon), the user journey must be seamless and compelling. The engagement rate is more than three times higher for omnichannel — a retail strategy that integrates different shopping methods available to consumers — versus single channel, according to ClickZ, a resource website for marketing leaders. Customer retention is also 90 percent higher for omnichannel.
Related: How to Develeop a Winning Value Proposition (Infographic)
Entrepreneurs also act with urgency to achieve important milestones, but it's actually small communication details that steer consumers to their shop. The outsized power of Google search and mobile search make marketing fluency a critical skill.
Ten percent of U.S. retail sales come from ecommerce and 79 percent of customers order via mobile, according to a 2018 study by OuterBox, a digital agency. Entrepreneurs should adapt their content for small mobile screens. And with search results, concise and actionable info should lead to some type of conversion, whether subscribing to emails, signing up for notifications or checking out with a shopping cart.
A kitchen appliance won't sell on Amazon if it's described just like any other device, lacking the uniqueness and special features that compel audiences to tap "buy" and checkout. Business owners must out-promote and out-hustle, which means snagging eyeballs and increasing conversion rates. Experts say that websites should capture a person's attention within the first 10-15 seconds to keep them engaged, and also that people only read 28 percent of words on a typical web page. So here are a couple of ways to make your message compelling, sexy and actionable.
Capitalize on Micro-Moments
Seek, and ye shall find. Small tasks may seem insignificant during a busy day, but they've become crucial micro-moments for brands, per Think With Google. A micro-moment is when a potential customer grabs a smartphone to compare prices, search for nearby restaurants, find a local CPA or attorney, etc. According to Google, 91 percent of people interrupt a task to use mobile and research information, while 82 percent consult a phone at a store while deciding in real time what to buy.
Search and mobile traffic are important for establishments that have a digital presence. Startups can capture sales by giving actionable messages in real time by understanding exactly what motivates user queries and by answering exactly what they're asking. Businesses should therefore create content that gives customers the info they seek in those precious micro-moments during which you command their attention. In the case of No Limit Creatives, for example, the firm uses keywords like "unlimited graphics and videos" and "perfect design solution" to attract clients who are searching in real time for top-notch designs.
"We constantly update our website so that potential clients always have access to information they need to make the right decision," explained founder Jeff Minnichbach during a recent email exchange. "Great content is our gateway for online conversions."
Related: How to Develop and Evaluate Your Startup's Value Proposition
Use Buzzwords and Unique Descriptions
Legendary coach John Wooden told his basketball players to "think without confusion clearly." America's hyper-competitive marketplace is flooded with copycat goods. Worse, their similar descriptions look identical to impatient buyers who think they're all the same, indistinguishable product. So, too, has content marketing become a copycat world; it's overrun with stolen words, as marketers unapologetically plagiarize the vocabularies of goods with high conversions.
For entrepreneurs, marketing fluency no longer means properly defining your merchandise or service on product labels or websites. Crowded phrases and confusing jargon could make your product indistinguishable from competitors. Business owners must go above and beyond to promote a better mousetrap. Use buzzwords that imply your offering is more optimized than what's out there. Such eye-snagging terms include "unlimited," "perfect," "guaranteed" and phrases like "over 100,000 satisfied customers" or "two decades of delivering pizza awesomeness."
Another approach is to use unique words that describe hot trends. In the case of dGen, a market-intelligence nonprofit institute, marketers emphasize their team's cutting-edge research in decentralization, distributed ledgers, mobility and smart-city technologies that are at the forefront of exciting innovation. Such an approach generates buzz because early adopters and tech enthusiasts are curious about new advancements that will shape the world.
Ask, and it shall be given. When it comes to the scope of their business, all entrepreneurs need to make this happen.
