Airbnb hit a home run with its value proposition; "Travel or live like a local." Capturing the company's unique approach to travel accommodations, boisterous raving drinking crowds flocked to their "game."
Staying in traditional ("boring") hotels is over; Airbnb offers travelers like you the opportunity to stay in unique homes.
More than that, you'll experience life as a local (when in Rome …). Connect with hosts, learn about the local culture and customs …
More than that, you'll experience life as a local (when in Rome …). Connect with hosts, learn about the local culture and customs …
You get to immerse yourself in the local community - adventure!
Want to reinvent your value proposition? We'll cover how to pump up your marketplace value proposition for a bite.
Why tackle creating better value propositions? Value propositions can:
- Improve the User Experience: A well-crafted value proposition will consider the needs and wants of your customers; it will make the platform more user-friendly and increase the chances of repeat business
- Stand Out: A strong value proposition helps your online marketplace create a competitive advantage, making new sales easier
- Increase Customer Trust and Loyalty: When customers understand the unique benefits of your marketplace, they will more likely be brand loyal to you
For E.g. Zillow's "Find your way home" value proposition positions the company as the place to journey for everything related to homes (what are those interest rates again …). 
The value proposition speaks to home buyers, sellers, and renters. All looking for a comprehensive source of information to help them trek through the mountaintop ranges (or even valleys) of home ownership.
The value proposition speaks to home buyers, sellers, and renters. All looking for a comprehensive source of information to help them trek through the mountaintop ranges (or even valleys) of home ownership.
What does Zillow do to back up its value proposition?
- Listings: provide access to millions of home listings,
- Estimates: give access to Zestimate, a proprietary algorithm that provides an estimated market value for any home in the US
Creating a value proposition is like building a bridge. A bridge you know needs:
- A strong foundation (those cement bearings)
- A clear understanding of the traveler's needs (from where to where are we going)
- A well-designed structure to effectively connect two points (the bridge itself)
Same with a value proposition.
A value proposition needs to have the following:
- A solid understanding of the target customer's pain points (the destination)
- A unique and compelling solution (the structure)
- And a clear and concise message (bridging the product or service to the customer's needs)
So how do you tackle reinventing a value proposition?
Create Your Own Marketplace Fast
- Launch your own marketplace niche fast
- Easily connect your own domain name
- Create your own categories quickly
- Create custom fields specific to your requirements
Identify Your Target Market for Your Online Marketplace
First – start with identifying your target customer. Once you understand your target customer clearly, you can tailor your value proposition to meet their needs.
E.g., convenience, cost savings, access to a broader variety of products, or a better user experience.
Once you know your target customer, the formal relationship is over. They'll feel like you're on their way to being their "BFF." You get them.
In their mind, the two of you are in Hawaii, watching the breeze whip through palm trees as you down a refreshing cold beer together. The mingling of people acts as a background as you anticipate every step of their needs. Trust is formed.
In their mind, the two of you are in Hawaii, watching the breeze whip through palm trees as you down a refreshing cold beer together. The mingling of people acts as a background as you anticipate every step of their needs. Trust is formed.
You are finally fishing with the right bait by clearly identifying the target customer.
Just as a fisherman uses the right bait to attract the type of fish, an online marketplace uses a compelling value proposition to draw in its ideal customer.
By understanding the needs and preferences of your target customer, your online marketplace can offer the right benefits; the right bait attracts the right fish.
By understanding the needs and preferences of your target customer, your online marketplace can offer the right benefits; the right bait attracts the right fish.
Why is identifying your target market important?
- 82% of businesses that adopt buyer personas have seen improvement in their value proposition (Matter)
- 71% of businesses that successfully surpass their lead generation and revenue targets have clearly defined buyer personas. (SharpSpring)
- 71% of consumers expect a personalized experience (Linkedin).
- 72% said they expect the businesses they purchase from to acknowledge them as individuals and be aware of their preferences (McKinsey)
- 80% of consumers are inclined to buy when brands provide them with customized experiences (Epsilon)
E.g., Etsy's value proposition is "a global marketplace for unique and creative goods."
By focusing on handmade and vintage items, Etsy sets itself apart from other online marketplaces and appeals to customers looking for unique and personal items.
Aside from that, Etsy is renowned as a platform for female sellers. A 2015 report revealed that 86% of the marketplace's sellers are women. While the platform is not exclusively for females, women have been the target market of Etsy for years.
Aside from that, Etsy is renowned as a platform for female sellers. A 2015 report revealed that 86% of the marketplace's sellers are women. While the platform is not exclusively for females, women have been the target market of Etsy for years.
Etsy has it dialed in.
- Want to take action?
- Conduct market research (focus groups)
- Define what sets your online marketplace apart from competitors (do as Etsy)
- Create a clear, concise, and compelling message
- Continuously test and refine your value proposition (A/B testing)
Embrace Exclusive Offerings in Your Value Proposition for Your Online Marketplace
Highlight the unique selling proposition (USP) or benefits of your product or service in your online marketplace.
USP sets your online marketplace unique from your competitors. It makes it more attractive to customers.
Want ideas? What kind of unique benefits can you offer:
- Your variety of products
- Your lower prices
- Your user-friendly interface
- Your faster and more convenient delivery, or
- Your more personalized shopping experience
With a USP, you'll get efficient instead of sweat beading off your head while you run a marathon chasing customers. You'll enjoy the smell of freshly brewed coffee and sink into your armchair as you work with clients who appreciate your value.
Your value proposition will be like shining a spotlight on the diamond in the rough. Just as diamonds shine brighter when they are lit up, the unique benefits of your online marketplace will stand out when they are lit up.
Your value proposition will be like shining a spotlight on the diamond in the rough. Just as diamonds shine brighter when they are lit up, the unique benefits of your online marketplace will stand out when they are lit up.
E.g., Vasanti's unique selling point (USP) is its commitment to inclusive beauty. Unlike other high-performance cosmetics:
- Vasanti offers a wide range of products suitable for all skin tones, including those with South Asian skin.
- Vasanti's products are cruelty-free
Want to get started on your USP?
- Identify your platform's unique benefits (look long and hard)
- Develop a clear, concise, and compelling message (unique benefits)
- Focus on the benefits to the customer (not features)
- Evaluate your marketing efforts (keep testing)
Use Specific and Measurable Benefits in Your Marketplace Value Proposition
Enhance your value proposition for your online marketplace by using specific and quantifiable language.
Quantifiable and measurable data in your value proposition can include:
- Customer satisfaction rates
- Conversion rates
- Cost savings
- Other data that can be used to quantify the benefits of using your product
Data helps build trust and credibility with customers! Data makes communicating the unique value of your offering easier.
E.g., don't simply state that your online marketplace provides a "better shopping experience." State that it saves your average customer "an average of 8 minutes per purchase"!
E.g., don't simply state that your online marketplace provides a "better shopping experience." State that it saves your average customer "an average of 8 minutes per purchase"!
By using concrete data, you'll cut through the clutter. Blow a hole through the tower wall or resistance.
Using specific and measurable language is kind of like cooking with a recipe. Just as a recipe might provide clear and precise instructions, your specific and measurable language offers clear and specific instructions for communicating the value of your online marketplace.
Specific and measurable language can make significant improvements to your selling. But most companies are terrible are improving their value propositions:
- 69% of B2B companies have established value propositions, but most do not try to improve them. (AtomicDust)
- 54% of marketers don't do any testing to optimize their value propositions (Marketing Sherpa)
But let's take a look at Shopify. E.g., Shopify's value proposition is "sell everywhere your customers are from one back office."
Small business owners can create and manage their online store and sell their products across multiple channels, including online, in-store, and social media.
But they quantify this with specific language saying, "Over 1 million businesses in 175 countries use Shopify." This hits home!
But they quantify this with specific language saying, "Over 1 million businesses in 175 countries use Shopify." This hits home!
Want to make improvements to your value proposition:
- Specific and Measurable: Include specific measurable language and evaluate your conversion rates
- Split Test: Continue to split test (A/B testing) various languages to see what performs best
Closing Summary
Presenting a solid value proposition for your online marketplace is crucial in attracting and retaining customers. To effectively communicate your value proposition:
- Know Your People: Identify your target audience and know their needs
- Unique Selling Propositions: Highlighting the unique benefits of your product or service distinguish you in the market
- Data and Statistics: Use data and statistics to back up your claims, build trust with potential customers and demonstrate your marketplace's value
Most importantly, improving your value prop will have more of you relaxing on the porch as you hear the ding of sales inquiries (that's right).
Most importantly, improving your value prop will have more of you relaxing on the porch as you hear the ding of sales inquiries (that's right).
About you?
- How do you measure an online marketplace's value as a customer?
- What value proposition have you found appealing in an online marketplace?
