Why you need a value proposition & how to create one
A value proposition is the most important part of your company. It’s what separates you from your competitors, and it’s what leads to sales. A value proposition is the promise of a solution that resonates with your audience. In this post, I'll explain why having a value proposition is so important and show you how to create one.
Why your business needs a value proposition
A value proposition is a statement that describes what your business does, how it does it, and its benefits.
Value propositions are typically one sentence long, but they can be longer if you feel like the topic warrants it.
The purpose of a value proposition is to clearly communicate your offering in language that resonates with customers and prospects. This helps them understand both what they stand to gain from making an investment in your product or service and how they can benefit from doing so.
It's also important to note that a value proposition isn't just an elevator pitch: It should reflect a genuine understanding of who you serve and why they need you in their lives.
Understanding value proposition statements
In a nutshell, a value proposition is a clear statement that offers three things:
Relevancy. Explain how your product solves customers’ problems or improves their situation.
Quantified value. Deliver specific benefits.
Differentiation. Tell the ideal customer why they should buy from you and not from the competition.
It’s not a tagline, mission statement, or vision statement.
It speaks to how your product or service will add value for the customer and how they'll benefit from working with you—which means that it should be created with them in mind.
How to build your own value proposition statement
There is no one right way to go about it. I suggest you start with the following formula:
Headline. What is the end benefit you’re offering in one short sentence? It can mention the product and/or customer. Make it an attention grabber.
Sub-headline or a 2–3 sentence paragraph. A specific explanation of what you do/offer, for whom, and why it’s useful.
3 bullet points. List the key benefits or features.
To understand your value proposition, you need to think through what problems your customers are having and how they can be solved.
For example, if you sell clothes online, the pain points might be that shoppers don't know what sizes to buy and they want more convenient ways of shopping. The desired outcomes could be that shoppers want to make better buying decisions and enjoy the experience of shopping online. The value you provide is a solution for these two problems: You offer accurate sizing charts so that shoppers can avoid returns or ordering the wrong size, and you have an easy checkout system so that customers can browse quickly without having to write down their credit card information every time they shop with you (or risk losing it).
Evaluate your current value proposition by checking whether it answers the questions below:
What product or service is your company selling?
What is the end benefit of using it?
Who is your target customer for this product or service?
What makes your offering unique and different?
The best value proposition is clear.
A value proposition is a clear, simple statement that describes what benefit you offer to your customers. It should be specific and unique to your business, so you can quickly communicate what you do and why it's important. When someone reads it, they'll instantly understand how they could use your product or service in their lives.
Example:
Very clear what it does;
Specific lead paragraph;
Relevant images that support text-based claims;
Features a booster—” Instant signup. No credit card required.”
The company makes it clear who their target audience is.
The value proposition focuses on a major pain point for many travelers: paying for luggage and having to carry multiple bags or heavy backpacks around.
Their headline addresses all of the benefits with one well-written sentence.
Conclusion
It’s important to remember that your value proposition isn’t just something you create once and forget about—it should be a living document that evolves over time as you learn more about the needs of your customers. And don’t worry if it doesn’t seem perfect at first: it took us a few tries before we came up with our final version!