Value Proposition [val-yoo prop-uh–zi-shen], n: a business or marketing statement that summarizes why a consumer should buy a product or use a service.
Your value prop should be clear, concise and let the customer prospect know why they can’t live without your product or service. In a few senteces, you must:
- Address their pain points (offer relevancy)
- Explain how you will deliver specific benefits (quantified value)
- And tells your ideal customer why they should choose you and not the other guy (unique differentiation)
Similar to a positioning statement, this forces you to do some big-picture thinking about
your company, and imagine where it may fall on the perceptual map of a prospective customer. One of the main differences is that your position relative to competition must first be addressed and understood
internally, and once established, the value prop will allow you leverage these unique benefits externally in a customer-friendly way. Some marketers insist on creating a value prop before a positioning statement, but I believe that being aligned internally is crucial before publicly broadcasting your value to the customer.
While being familiar with value props could greatly influence your business, it is equally important to know what a value prop is NOT. Here are some examples:
- It is a not a tagline, slogan or catch phrase
- It is not a positioning statement. While they go hand-in-hand, a value prop does not discuss your position in the market, rather the value you will be providing to the customer
Overall, a successful value proposition is clear, concise and is not clouded by jargon. For more information about crafting a thorough and unique value prop, great examples and some inspiration, check out this article from ConversionXL!
Featured image credit: unbounce.com
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