9 Keys to Increase Website Conversion Rate and Turn Visitors into Customers

by Eric Tsai

9 tips to effectively increase your website conversion rate

If you’ve been reading this blog for awhile, you might remember a post I wrote recently called Why Attention is the New Currency Online. When I wrote it, I had been working to create a process to audit website conversions.

Ultimately it turned into an article about capturing attention online because without attention there would be nobody looking at your links, images, videos and compelling content.

And without people reading your content, you certainly won’t get any clicks. When people read your content online, links and clicks follow.

However; you don’t want just any click, you want qualified prospects clicking on your links, visiting your website and consuming your content.

Let’s be clear, getting attention is only part of the equation to help you increase conversions but it does not automatically equals to conversion.

For those of you who don’t know why qualified traffic is important, let me just say that if you want to increase conversions of your landing page or your ecommerce store, this is crucial.

What is a Conversion?

How does the value of a conversion relate to the return on investment of a marketing campaign?

Basically a conversion is an action a user takes on your site that has value to your business.

Typically it’s a sale but it can also be a newsletter sign-up, a download of a file, viewing of a video, or a request for more information.

If you know what a conversion is worth to you, and the percentage of traffic visiting your conversion page versus the traffic that do convert (the conversion rate), then it is easy to calculate your return on investment (ROI) for just about any marketing campaign.

Conversion Rate and ROI Calculation

From the calculations above, you may think that if you want to increase ROI, you just need to increase CR right?

You’re on the right track but that’s not the entire story here because conversion rates typically depend on two factors:

  1. Qualified traffic – The goal is to capture only traffic that’s more likely to convert. This is where direct marketing is heavily used to grab the attention of the visitors. A valuable piece of content, a paid search ad or recommendations from social media channels are just a few ways you can use to obtain qualified traffic.
  2. Landing page – A landing page is a specific area of your website where traffic is sent (via links from online advertisements, organic search results, social media or email) specifically to prompt a certain action or result.  And since a visitor usually lands on a page after clicking on a link, it’s important that the links you use to send traffic to your website is relevant to what that person is looking for. Once on your landing page, it’s basically a tactic of one-on-one selling so if it’s not what people are looking for, you will likely get a low conversion.

There are tons of strategies to get qualified traffic (paid search, SEO, email, display, affiliate, etc.), but today we’re going to look at things that you can do to your website to help you improve your conversion rate.

These tips are easy to implement and can start improving your results immediately.

9 Keys to Increase Conversion Rate

I’m going to give you my recommendations, I also want to share a few principles that I believe are crucial in building a website that attracts thousands of high quality links.

The following steps can also be used for your landing page audits.

Use a simple scorecard format to quickly determine what you may need to do to increase your conversion rate.

Here is an example of a score card (you can download the landing page audit scorecard here)

landing page scorecard

1. Know Your Audience

The most important thing that you can do to increase your conversion rate is to know who you’re targeting and tailor your content for that person.

When a new visitor lands on your site for the first time and clicks on a link or goes to your product page, and doesn’t buy anything (or fill out a lead form), then you’ve probably lost them for good.

In my own testing I’ve found that addressing your message to a specific demographic can give you a nice life in conversions.

In fact, when I tried to cover as much features and benefits as possible (thinking that’s just adding value), I tend to get less clicks and low conversions.

2. Focus on Positive User Experience

A landing page is tailored to fit the specific call?to?action (that you designated) and is often the first page a visitor sees when clicking on a link. The challenge is to ensure that you are optimizing an exceptional online experience for visitors and also producing high ROI.

So what is considered an exceptional online experience?

It’s basically providing visitors with accurate, relevant and useful information to meet their needs. But do it in an entertaining and engaging way to differentiate yourself.

None of the bait-and-switch tactics or hype that’s overpromised and under-delivered.

positive user experience ads

A positive user experience usually focuses on a single message with a strong call-to-action that are written in plain language with no more than 7-12 words.

Don’t make the mistake of trying to combine all the features and benefits of your offer, instead focus on the highest value outcome.

Once you have a clean and precise message, you can make it credible with branding elements such as logos and security icons (third-party verifications) or use stories and testimonials. This will give confidence to the visitor which can have a positive impact on conversion as well.

Perfecting, or at the very least improving, customer experience has replaced customer loyalty as the ultimate corporate PR and brand reputation.

Put yourself in your visitor’s shoes and ask: would I scroll down and read this?

Would I fill out this form and give my personal information?

Why would I click here?

3. Develop Your Value Proposition

A value proposition is basically your offer. What are the main selling points? Why should the visitor buy right there and then? It may sound obvious to you but a clear value proposition is the foundation to your conversions.

Your landing page should address the top questions and concerns prospects have about your offer. And it usually goes back to the four Ps of marketing: product, price, place and promotion.

Too often, marketers focus too much on “promotion” instead of combining the other three Ps.

You may find after studying the competition that increasing or decreasing your price is likely to result in better conversions, for example. Perhaps there is a distribution channel, such as the social networks or email marketing; you haven’t fully integrated into your marketing mix.

And with products, developing a new product or re-package an existing product may provide a lift to your overall conversion as well.

You are likely to increase the chance of conversion if you have a clear value proposition that pushes the visitor to take action with your offer.

Ask yourself whether your landing page is helping people to make their decision.

If it’s not, then why should people do what you ask of them? (Purchase a product, sign up for newsletter or request a demo…etc.)

Don’t forget to research your competition so you know how your value proposition stacks up.

The new consumer-led digital revolution is all about exceeding customers’ expectations via influence.

Simply put, influence is conversion rate.

4. Cater to Online Reading Habits

What doesn’t get read doesn’t get clicked on. This is a simple logic that many marketers failed to recognize that there is a fundamental difference between people reading online and offline.

Accordingly to Dr. Jakob Nielsen’s eye tracking studies, “People rarely read Web pages word by word; instead, they scan the page, picking out individual words and sentences.”

Unlike traditional media or what he calls “linear media” such as print and TV, people expect you to construct their experience for them. Basically readers are willing to follow the author’s lead.

However websites are considered “non-linear media“, where the rules reverse. Users want to construct their own experience by piecing together content from multiple sources, emphasizing their desires in the current moment.

In fact, Dr.Jakob conducted an eye-tracking study and found that people are read in F-shaped patterns when reading web content.

F-shape reading pattern

This is why you should use attention call-outs such as headers, subheads, paragraphs, and bullet points with words that users will notice when scanning down the left side of your content in the final stem of their F-behavior.

The idea here is to layout your content so the readers will WANT to read but keep in mind that the F-pattern should be considered descriptive, not prescriptive.

It’s all about giving you the highest chance of grabbing attention.

5. Create Compelling Copy with Clear Headlines

The first things a visitor reads after landing on your page is your headline. This is when you need to pass the smell test.

If your headline is anything less than clear, informative and compelling, you  will bore or confuse your visitors into leaving.

On the other hand, a well-written headline can drive your visitors to take a closer look even if it’s just text.

Have you noticed how some landing pages are super long?

These landing pages are called “long-form” sales letter that typically consists of a title, subtitle, bunch of paragraphs, images, testimonials and a few buy buttons on a plain-looking page that you have to scroll on and on.

Think about it, if it doesn’t convert well why would there be so many long-form landing pages online?

The truth is people only read what they’re interested in even if it appears to be too long!

The key is to do so in an engaging way that will connect with your audience, it can even be fun and entertaining.

One of my ways to start creating engaging copy is to use the five W’s and one H technique. Here is an example of this:

  • Tell them why they’re about to read the page
  • Tell them who’s it for
  • Tell them what’s in it for them
  • Tell them where they’re at or where they can get it
  • Tell them when they can get it (i.e. limited time offer)
  • Tell them how it works or how it relates to them

The goal is to focus on everything you think will push them one step closer to taking your converting and nothing more.
Make sure you get to the point with actionable content (tell them what to do next) that focuses more on the outcome rather than the feature.

You may want to check out the following articles to help you create compelling content:

How to Create Magnetic Copy to Maximize Your Content Appeal.

7 Ways To Elevate The Perceived Value Of Your Content.

If you know your customer well enough, you should know what they want.

Focus on wants at the beginning not needs.

6. Leverage Image or Rich Media to Direct Attention

Images, videos or testimonials can motivate visitors and trigger emotions. This can have a positive impact on viewers to want to read more about your product and explore the site longer.

Studies have showed that people perceived websites as more “professional” or “trustworthy” when they had images of people on the site.
However; you don’t want to just take any stock photos that relates to your message and load it up on your site.

Instead images can be used to effectively change visitor behavior substantially.

According to a study by Bunnyfoot, subtle changes such as using the right images can direct and guide the visitor’s eyes where you want them to go.

Visual Eye Tracking Study

I thought this was an interesting study and one that you should consider when adding images to your landing page.

When using images and videos, ask yourself whether that piece of content is drawing attention away from your persuasive message or adding to it.

7. Create Content with SEO in Mind – SEO Copywriting

A great tactic that you should put in practice is to integrate your copywriting with SEO (search engine optimization).

SEO copywriting is a technique that tries to optimize your site around a keyphrase that can send you organic search traffic. Done right you can even turn research-intent traffic into converting traffic.

The goal is to get search engine rankings for a relevant phrase around what you’re trying to rank for that can bring you “qualified” traffic.

For example, if someone is looking for “men’s running shoes review” and your online store happens to have a blog with articles comparing all the latest running shoes on the market, the visitor may read the article and decide to bookmark and come back later. Or better yet, the visitor reads the article ended up buying a pair of shoes from your online store.

Obviously you need to know the keywords that your audience uses in order to rank for those keywords.

You can get an idea on the competitiveness of your keywords by using Google’s Keyword Tool to see what phrases are popular and the volume of searches on them globally and locally.

Once you have those keywords, simply remember to use it in your content in addition to HTML areas such as the title tag, meta tags, anchor text in links, and permalinks.

Here is an example of my SERP result, notice the bolded words that highlights the keywords that’s in my title and descreption.

SEO copywriting title descreption

If you use a platform like WordPress (what I use), then all you have to do is install one of those All-in-One-SEO plugins and you’re set.

8. Test, Adjust and Repeat

The golden rule of any direct response marketing is to ensure you evoke a measurable, tractable response.

This means constant testing of your landing page using methods such as a/b split testing or multivariate testing.

The concept is simple.

You want to have variations of the page to be tested on an ongoing basis so you can improve conversion rate.

  • What is an A/B split test? A classic direct marketing tactic, A/B testing is a method of marketing testing by which a baseline control sample is compared to a variety of single-variable test samples in order to improve response rates It’s typically performed to determine the better of two content variations
  • What is a multivariate test?
    A slightly more complex test, multivariate test is a process by which more than one component of a website may be tested in a live environment. It can be thought of in simple terms as numerous A/B tests performed on one page at the same time.

By conducting tests on your landing page, you will be able to determine which headline is more effective or what layout works better.

Here is an example case of an A/B split test that I did on my email marketing.

The objective was to determine if removing the sidebar would result in a better overall performance. I also tested two different email subject line to see which one opens better.

split test email

The obvious winner here is the control version. The result indicated that the new version (without sidebar) has a higher open rate compare to the control version (email with sidebar), but the conversion rate was substantially lower.

Keep in mind that with testing you want to make sure you gather enough data (sample size) to ensure that your tests are statistically relevant.

Sounds complicated?

Well, thanks to Google, you can use their Google Analytics Content Experiments to conduct both of these tests for free!

Or for more advanced folks, you can try Visual Website Optimizer, UnbounceMonetate, or Sitespect.

When it comes to testing, here are some ideas you can use:

  • Test different headlines, sub headlines and ad copy
  • Test different version of the same logo, icons, layout of testimonials and even colors
  • Test different call-to-actions and buttons (i.e. try this vs. buy now)
  • Test different images or videos (swap image for video and vice versa)
  • Test different forms (embed in different areas of the site, reduce required fields)
  • Test different offers (use incentives to see how discounts or coupons work differently)
  • Test long versus short sales page
Checkout WhichMVT for a full list of reviews and comparisons on testing tools.
And for case studies and test ideas, visit WhichTestWon.

9. Track and Analyze Your Landing Pages

One thing that you can do to benchmark your landing page is to install Google Analytics. If you are using Google Analytics you will know that it’s an invaluable tool that’s again – totally free!

By using Google Analytics you will know the sources that deliver traffic to your landing pages from pay-per-click (PPC), email marketing, social media, organic searches or even offline advertising channels.

Knowing the source of your most profitable traffic is the key to increase ROI.

The more detail you get with where traffic comes and goes the more clear you will see how visitors reacts to your offer.

There are many ways to aggregate your website data from Google Analytics but if you want to focus on conversion rate, start by looking at the following areas (just to name a few):

  • Traffic source – where are people coming from? This is your channel acquisition strategy.
  • Visitor loyalty – How long do people stay? How many pages do they visit and how many times do they visit between two or more times.
  • Bounce rate – How relevant is your landing page? Bounce rate measures the percentage of single-page visits or visits in which the person left your site from where they landed on. The more relevant your landing pages, the more visitors will stay on your site and convert
  • Keywords – This shows you what queries (keywords) are mapped to your landing pages that sends you traffic. This is a good indicator of what keywords your website is ranked for and how search engines interpret your content.

There are so many important variables to consider when tracking your pages, you can also track clicks or heatmap on your layout and navigations via Google Analytics (In-Page Analytics section) or something like Crazy Egg, Click Density, Click Tale or Attention Wizard.

heatmap analytics

Last but not least, listen and learn from your customers to make sure what you’re tracking matches to the story your data is telling you.

It’s as easy as picking up the phone and call the customers yourself!

If you aren’t able to do that, try conducting regular online surveys or implement some type of post-sale customer feedback system.

The Take Away

In the era of engagement, consumers no longer separate marketing between in-store or online experience—it is the experience.

Whether you’re making a sale in person or receiving a conversion online, conversion rate is the vote of confident that creates personal relationships.

It is trust, likability, authority and ultimately, influence.

Nothing prevents you from trying to increase your conversion rate. If you do nothing, your conversion rate will normalize over time (stays the same).

However; while conversion is an important factor to the profitability of your marketing, you shouldn’t lose sight on the big picture – that’s building your brand equity.

When you have brand equity, you have top-of-mind recalls.

This means you command attention and your message will have a higher chance of cutting through the noise of the increasing irrelevant landscape of “push” advertising.

Conversion rate will eventually reaches the point of diminishing returns – when your investment yields progressively smaller profits.

That’s when you need to take your budget and put it into a higher ROI marketing vehicle.

Until then, keep testing.

 

Reprioritizing Your Brand Value Propositions

by Eric Tsai

We’re almost midway through Q1 of 2010, if your business is still going through a tough time, you’re not alone.  Perhaps it’s time to review your cost cutting measures or reexamine your value proposition to your customers.

McKinsey Quarterly recently published “The downturn’s new rules for marketers,” which suggests new ways to look at marketing in this post-recession era. Here are some key points from the article:

– To weather the storm, it will be necessary to identify anew who and where the profitable customers are and to prioritize the most effective marketing and sales vehicles for reaching them.

– The old tactic of focusing on historically profitable regions and customer groups will miss the mark. Instead, marketing and sales executives must reprioritize geographic markets and customer segments at every shift of economic fortune.

– Business-to-business (B2B) companies must go a step further. A fresh look at segments isn’t enough; instead, such companies must reexamine their opportunities and risks on a customer-by-customer basis.

– No matter how a company arrives at its quality assessment, the real power comes from combining that analysis with data on the reach and cost of an advertising vehicle. This combination of reach, cost, and quality helps marketers compare the impact of different vehicles on an “apples to apples” basis—the key to effective prioritzation.

– Companies that follow the playbook from past recessions will probably chase markets and segments made less attractive by the present downturn and focus too many resources on traditional marketing vehicles and frontline salespeople. To avoid these costly mistakes, marketing and sales executives must dynamically reassess their geographic, customer, advertising, and sales force priorities, with constant attention to the ever-shifting economics of this downturn.

The take away: It’s time to check under the hood of your marketing vehicles.  Not just from a marketing perspective but from a brand’s perspective to focus on customer-centric strategies in order to improve the overall brand value.  What’s your value to your customers? Can you differentiate? How do you stay relevant?  How will your reprioritize your business opportunities?  Marketing is no longer owned by the marketing department only, consider a more fluid approach in coming up with your new marketing playbook.  We must adopt a marketing strategies that mimic the lives of our consumers and how they choose to interact with brands.

How Social Media is Transforming Business

by Eric Tsai

Lately I’ve been researching on how brands are using social media to improve their business.

While doing a bit of thinking on social branding, I recalled a conversation I had with a friend that just launched a web2.0 startup business.

The one advice I gave was to launch it as soon as possible without worrying too much on branding.

The idea is to deploy your initial idea and allow your users to tell you how to evolve the product.

That’s how majority of the new web startups utilize crowdsourcing with an emphasis on the power users then really listen to what they have to say.

The brand development aspect of a startup isn’t as important as the initial user experience.

It got me thinking about business models and how more and more companies are finding it necessary to transform their business model due to the economic crisis.

In addition, the shift in consumer behavior will cause brands to adjust to a fundamentally altered playing field.

In most cases brands will find it hard to transform themselves unless they’ve already got a flexible, dynamic long-term strategy that embraces change.

This means dismantling silo culture within the organization while fostering cross-functional collaboration to spark fresh thinking.

Brands that have this fluid approach are more likely to adapt to change through uncertainty.

Brand Fluidity Creates Advantage

In my previous article “The Emerging Trend of Hybrid Marketing Model,” I pointed out that hypercompetition is no longer allowing businesses to have a sustained competitive advantage, so the idea approach for brands is to have an agile business model.

This happens consistently in the tech industry where every 3-5 years technology evolves and often improves (1.0 to 2.0) leading to a need for adoption.

The key is to stay flexible and scalable because products, services, and business models will evolve over time as knowledge becomes ubiquitous which leads to the path of commoditization altogether.

Just look at the costs of electronics, web hosting, printing, or even internet bandwidth have dropped in price in the past 10 years. In fact, not only are they cheaper, you get more for less even with inflation.

By having an nimble business model, it’s possible to build brand momentum that has relevance in addressing consumer needs.

And relevance is a good predictor of short and long-term success.

However, more focus should be put on proven short-term tactics that aligns with long-term goals.

Short-Termism Is Not Sustainable

The eruption of social media has forced brands to incorporate this new tactical tool as part of the overall brand strategy playbook.

This is indicative of the validity from companies like Intel, IBM, eBay and Wall Street Journal that have moved quickly to publish social media guidelines for their employees.

In a structured brand ecosystem, social media is an unproven short-term scheme because it will continue to evolve as an ongoing, living tool that facilitates real time dynamic conversations.

I’m not denying the success that some brands are having in social media but in general most brands are still trying to figure out the arc of its trajectory in pursing the adequate usage of Twitter, Facebook, LinkedIn, and even blogs.

Brands that quickly jump on the bandwagon without defining the desire outcome are focusing on short-term solutions that are simply band-aids not cures.

Coupled with a lack of attention to the overall strategy, fundamentals, and conventional approaches to long-term value, it’s simply not a sustainable model.

What’s important is to create an unambiguous structure for brand fluidity while maintaining energy and involvement throughout the organization.

The transformation extends well beyond tactics. Brands must become more engaging by being more social, this means building meaningful relationships that resonates with their audience.

Social Media Accelerates Upstream Reciprocity

Every relationship has a purpose especially on the increasing social web. What social media demands is trust and authenticity.

I see it as doing what you promise and be consistent especially in transactional business. In a recent article “Altruism Repays the Best-Connected Individuals” from Technology Review published by MIT, stated that:

Unselfish behavior spreads through society in a way that most benefits the “hubs” in the network.

The article basically illustrated how being unselfish will benefit you at the end because those who have been helped will likely to go on to help others, then spreads through a group creating the upstream reciprocity phenomenon.

There is actually an entire study done with formulas to support the phenomenon and you can go read the “Upstream reciprocity and the evolution of gratitude” analysis from U.S. National Library of Medicine if you like.

reciprocity_stream
I found the information fascinating because it mimics the structure of a social network.

Apply this concept to social media and you’ll realize that you’re the red dot A and everyone else is dots B and C. Imagine altruism can be any form of your direct or indirect influence in social media.

It could be the content on your blog, tweets you’ve answered, or even products and services you’ve sold (ebooks, videos, webinars, web design, copywriting, consulting, etc).

The takeaway is social media accelerates both upstream and downstream reciprocity especially for reputable individuals.

In business, the act of unselfishness is another form of the Freemium business model. And this immediately hit home with me on how social media is transforming the way companies are doing business.

You can no longer neglect your reputation online because that’s where the conversation about you is taking place.

Social Transformation

Social media has evolved to be the hub for instant and viral reciprocation for any organization’s internal structure and external engagement.

The power of its reach and the openness of its platform commands the kind of transparency that challenges your core value proposition.

It really doesn’t depend on the wisdom of gurus or experts for its dynamism.

That’s the primary reason it will almost certainly withstand the “it’s a fed” challenge.

Social media is transforming businesses and it matters.

From Twitter to Facebook and every web2.0 tool in between, consumers are more and more concerned with the integrity and intent of the brands they interact with, while employees are less afraid to expose how companies work internally.

The challenge for marketers is not to merely appear engaged, but to actually be engaged – to live up to the promise and deliver.

I hope this is helpful in uncovering the implications of social media in business, it’s important to identify the fundamentals and rethink the overall picture.

I know I haven’t analyze any of the specific social media tools in detail, but you can simply conduct a Twitter or LinkedIn search to find every possible tactic and how-to’s out there by the so-called “experts.”

Why You Should Always Be True to Your Brand

by Eric Tsai

Recently I’ve had great conversations with other brand strategists about the changing landscape in brand building.  There is no doubt that social media is having a profound impact on brands in all fronts of marketing, advertising, PR, and networking.

The core value of social branding is about fostering the “trusted” relationship from experiences associated with a service, a person or an entity.  This is largely built on the effectiveness of the brand’s ability to communicate and influence people’s perception.

Today social media aims to bridge the gap between brands and people by providing a platform that embraces the concept of a community. It’s a new stage for brands to engage and interact with their audience.  But one thing remains the same, there is always a challenge involve when it comes to creating and delivering value.  Therefore, it is vital that brands demonstrate the indisputable benefits to their audience.

Strategies Vs Tactics

Described by the Chinese General, Sun Tzu:

Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.

Simply put, tactics present a small picture perspective. They’re tools to fulfill your big picture strategy. Branding is not about using tactics such as scarcity, sense of urgency, risk reversal and value-for-price positioning.  How about email campaigns, search engine optimization, product placements, celebrity endorsements, promotional events, telemarketing, or direct response advertising?  Think again. They’re the vehicles that carry out the messages and to generate and funnel leads.

If you know what I’m talking about, you know those are techniques often used by marketers.  In fact, I help clients implement those tactics regularly as part of the overall plan to achieve the stated goals.  They can often be confused as strategies because within tactics there is also an element of strategy.

brand-strategyI see tactics as marketing triggers to gain attention, the “Hey! Look at me, I’ve got something important to say!”  And when you gain people’s attention you must provide relevant and tangible value that’s meaningful to fulfill their expectations.  And believe me, people have expectations when they give you a chance to deliver.

Brand Authenticity

Once you get that opportunity, it all boils down to the execution (tactic) and the authenticity of your brand (strategy).  Execution focuses on conversion tactics while brand authenticity focuses on value-extraction strategies.  An authentic brand fulfills the implied promise that people have come to expect.   And by doing so, the brand becomes more believable and trustworthy creating the foundation to build a relationship.  As a result, you need to exposed the true intention behind your tactics.

Let’s take a look at brand slogans as examples.  Walmart’s slogan of “Save Money, Live Better” says nothing about the quality of products it sells nor does Taco Bell’s “Think Outside The Bun” implies to what’s inside the bun.  However, Porsche’s “There Is No Substitute” or Rolex’s “The Crown Of Achievement” both allude to a sense of novelty and dominance.  These brands stay true to their slogans without suggesting artificial statements about their products.  Of course there is always a gap between what consumers expect versus what brands imply, the trick is to narrow the gap by being authentic.

By simply being authentic, brands that focus on fostering a healthy relationship with their customers will increase the chance of stimulating an action to buy.  This is the outcome brands desire, turning prospects into lifetime customers. For personal brands, it’s turning speculators to fans.

Create Your Brand Value Proposition

It doesn’t matter if you’re building your business brand or personal brand, you should create a brand value proposition.  These values act as the blueprint to create your brand strategy so you can stay consistent, cohesive and most importantly unique. By having a solid brand value proposition you will be efficient in implementing your marketing tactics. Even if you’re selling a product with lots of competition, knowing your value will allow you to be creative in finding new ways to execute those tactics.

Hers are 3 simple ways to help you identity your brand value proposition:

1. Know your audience and identify their pain points – This may sound easy but I often see companies sell too broad because they want to sell to as many customers as possible .  This is a false perception because you can not be all things to everybody, follow the 80/20 rules and focus on the 20% of customers that generates 80% of your revenue.  The key is to understand the decision maker’s psychology.  Things that matters to a manager may mean nothing to a CEO that makes the final decision. This is typical in the technology industry where companies often sell features to department managers instead of outcome to owners or executives.  Great attributes mean little when the audience is looking for the bottom line impact. Identify all the scenarios to describe the situation where you come in and solve the problem, alleviate the pain.  Keep in mind that you want the “ideal customer” that already has a need for what you provide.

2. Describe what you do and what you don’t do – Write down your competencies that represent what you offer.  Focus on key words or phrase to capture what makes your brand special.  Make it simple and use verbs that express an action or a relation between two things.  Be plain and straight forward, if your company sells software start with “we sell software” not something like “we increase sale for businesses with an innovative software application.”

3. Create your brand message and test them – Once you have some core messages to work with from the two above steps it is time to test them.  Get inputs from internal and external stake holders, what you think and care about may not be what others see or remember.  That’s okay. You just need to learn to drive home a few key points that will stick in their minds and inspire them to learn more. It’s more effective in an initial interaction to pare down what you talk about to weed out the non-essential information. The idea is to have different talking points tailored to different audiences. It’s important to constantly update and improve your value proposition so it stays fresh and relevant.

Now go create your brand value proposition and use them as the foundation of your bio or company description on your Twitter, Facebook, LinkedIn, Digg accounts or post them on your Blog .

Do you have a brand value proposition?  Are they authentic?  Share it right here and get some feedback!