How to Create & Test a Great
SaaS Value Proposition
Almost every SaaS product faces a competitive landscape where customers have countless options. A strong SaaS value proposition can be a foundational element for your success. It’s the compass that guides marketing and sales, ensuring that your product addresses real customer needs, stands out in the market, and drives growth. We have prepared a plan to create and test a great SaaS value proposition, including how to research, formulate, test, and refine it.
Research Your Market & Audience
Conduct interviews with prospects and customers to understand their major pain points, desired outcomes, and reasons for using your product.
Analyze website inquiries, sales notes, support tickets, NPS surveys, and usage data to identify customer challenges.
Review competitor messaging and customer reviews to analyze how they differentiate themselves.
Formulate Your SaaS Value Proposition
Use your research findings into a few concise statements articulating the main customer benefits.
Frame the benefits in terms of tangible outcomes provided by your SaaS solution.
Draft 2-3 initial value proposition statements for testing.
Test Your SaaS Value Propositions
Create targeted landing pages to test your draft value propositions.
Run split tests with paid ads that drive traffic to your landing pages.
Gather qualitative feedback from customer interviews (if you have the budget, consider Wynter).
Review Success Metrics
Analyze click-through rate on each value proposition in ads.
Review conversion rates from landing page visitors to demos, trials, or conversions.
Refine Your Draft Value Propositions
Refine your value propositions based on results.
Test the new iterations in the same manner.
It can be difficult to get substantial customer interview participation (consider Wynter).
Sample size matters! Quantity impacts quality of testing.
It’s often hard to isolate the impact of value proposition messaging — multiple factors can influence conversions.
Confirmation bias is not your friend… Remain objective, and don’t let your own opinions influence the outcome.
Potential Blind Spots
Don’t overlook the specific needs of customer segments.
Your messaging may resonate with prospects but not with the real decision makers.
Your SaaS value proposition can become outdated as your product evolves.
A Great SaaS Value Proposition
With this plan, take a rigorous approach to drafting, testing, and optimizing your value proposition. Solid research ensures that it is rooted in customer needs. Testing and data analysis provide validation. Iteration allows refinement as you learn more from your target audience. The end goal is an effective SaaS value proposition that convinces your ideal customers to become satisfied users.
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