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How to Write a Value Proposition (+ 6 Modern Examples)

Leaders often work tirelessly to improve their company’s product or service, thinking that it’s the most valuable role they can play. But for your business to “click” with your target audience, you need to stay just as close to your customers as you do to your offerings.

The details of customers’ needs and wants should be just as familiar to you as the features of your product or the details of the service that you provide. A value proposition serves as the bridge between these two aspects of your work. It’s a mantra that unites the two halves of the whole business.

We’ve demystified the nuts and bolts of how to write a value proposition, complete with examples, so you can ensure that all your hard work manifests in value for your customers every day.

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What is a value proposition?

A value proposition is a simple statement that summarizes why a customer would choose your product or service. It communicates the clearest benefit that customers receive by giving you their business. Every value proposition should speak to a customer’s challenge and make the case for your company as the problem-solver.

A great value proposition may highlight what makes you different from competitors, but it should always focus on how customers define your value . Likewise, conversations around brand strategy and taglines should stem from a value proposition, but they aren’t one and the same.

You may be wondering: Why bother learning how to write a value proposition? It’s like investing in the foundation of a house. You may not see the foundation, but everything you do see — and the long-term safety and security of your home — rest on it having a strong place to start from.

How to write a value proposition: 3 options

If you’re intentional about creating a value proposition, it can help clarify the way forward for your entire company. However, including too many voices early on can water down your intent in an effort to make everyone happy, and, ironically, the results won’t work for anyone.

Rather than get everyone involved, start with a small group of people (no more than three) who can set aside the time to hone a few compelling options.

Here’s how to write a value proposition three different ways, from complex mapping to a simple formula. Start with one or try all three in a workshop to refine your ideas with greater precision.

1. Map out a value proposition canvas

Peter Thomson’s value proposition canvas explores the different components of a company that contribute to a strong value proposition. Thomson believes that a process like this can help team members get to “minimum viable clarity,” which can be whittled down into a one-sentence value proposition.

Thomson calls a value proposition “a crunch point between business strategy and brand strategy,” and he created a model that syncs the two strategies. There are seven areas to explore, each of which takes up a section in the map:

When you explore each section of the canvas, do so from the perspective of the customer. While writing out the benefits of your product, imagine how it increases pleasure or decreases pain for the person using it. Approach the features and the experience that way, too: How do the features make the customer’s life better? How does the product experience make a customer feel?

Next, you’ll dive into the customer’s wants (emotional drivers), needs (rational motivators), and fears (undesired outcomes). Remember that even when consumers are making purchases or investments on behalf of a company, they can still be guided by emotions .

In particular, try to understand whether a product or service affects a buyer’s perceived likelihood of failure, their anxiety, or their reputation at work. You can use Bain & Company’s 30 “ Elements of Value ” and its B2B counterparts as a roadmap for articulating the ways your company gives the customer value within this context.

2. Ask Harvard Business School’s essential questions

Harvard Business School’s Institute for Strategy & Competitiveness simplified how to write a value proposition with just three prompts. Just as Thomson does, Harvard argues that a value proposition serves as the connection between a company and its customers:

“While the value chain focuses internally on operations, the value proposition is the element of strategy that looks outward at customers, at the demand side of the business. Strategy is fundamentally integrative, bringing the demand and supply sides together.”

To create an integrated, cohesive value proposition, start by brainstorming as a group around these three questions:

Which customers are you going to serve?

Which needs are you going to meet?

What relative price will provide acceptable value for customers and acceptable profitability for the customer?

Depending on your product and service, it may make sense for you to start with the first or second question in the list. Together, all three create a triangle that can lead you closer to a succinct value proposition.

As you move through the exercise, consider which one is the primary “leg” of the triangle. For example, is the greatest value that you offer in cost savings? Or is it that you’re offering a better product or experience at a premium?

Also, think about whether your company is expanding the market by meeting a need that hasn’t been realized. Harvard’s experts use a great example — the iPad. Apple created a new demand that hadn’t existed before the technology hit the market.

3. Try the Steve Blank formula to distill your insights

Steve Blank , a former Google employee who runs the Lean Startup Circle , noticed that many startup founders emphasize features instead of benefits when they try to transform more detailed insights into a succinct value proposition. Instead of summarizing how a company offers value to customers, leaders often get stuck in the weeds.

Blank saw the need for a simple formula to transform a brainstorm into a simple sentence. We love distilling more detailed insights with his method:

We help (X) do (Y) by doing (Z).

Use Blank's intuitive template to come up with your own value proposition. Remember that the first thing that comes to mind may be the best. Your gut instinct could be spot on here, and that’s what makes this simple solution so valuable.

Here’s my value proposition for my copywriting business, for example:

I help marketing teams to resonate with their target audiences by communicating with clarity and compassion.

Your local coffee shop may have a value proposition that’s similar to this one:

We help our local customers to feel good and do good by fueling them up with artisanal coffee in a community-focused space.

Although you may have brainstormed as a group with the other two methods, this time, ask team members to complete this exercise individually. Comparing and contrasting answers afterward can yield helpful insights about each person’s priorities.

Most importantly, as you draft your value proposition, use the language your customers use. At Help Scout, we say things like “emails slipping through the cracks,” because that’s what our customers say about the problem we help solve. If you don’t write your value proposition the way your customers would write it, there will be a big gap between what you say and what they hear. When you use their voice, you cut through the noise.

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6 value proposition examples

Beyond grasping how to write a value proposition, it helps to see how a strong statement influences and infuses a company’s strategy. Because value proposition examples aren’t necessarily the same thing as brand copywriting , we don’t have access to the exact words a company uses internally.

However, if a company does a great job situating their value proposition within the market, you can tell because their message resonates far and wide. Here are six modern value proposition examples that will help you to understand how value propositions can help you break into a market or create a new one.

Slack is a collaboration tool for teams with a simple, easy-to-use platform and instant message capability. The platform is equally beloved by enterprise teams and scrappy startups for its ability to keep work flowing, no matter the everyday barriers or the complexity of a project.

Everything that the company does hinges on their value proposition: Slack saves time by tearing down communication and systems silos. Their product aspires to take the pain out of working together online — and maybe even make it fun. That’s something no other product has tried or claimed to do.

Because they’ve built such a powerful value proposition, Slack is perceived as an enjoyable alternative to the dreaded email inbox and other tools. Their approach works. Slack is the fastest-growing SaaS startup ever, and it’s used by 77% of Fortune 500 companies.

Despite this legendary growth, Slack famously said it was a business with a pared-down sales team, which is only possible because of the foundation they set with a formidable value proposition.

2. Bloom & Wild

Bloom & Wild is an online flower delivery company that simplifies the process of ordering and receiving luxury flowers. Aron Gelbard, founder and CEO, explained their value proposition in their 2017 funding announcement: “We’re enabling [our customers) to order flowers and gifts from the palm of their hand with better product, designs and payments.”

Bloom & Wild makes it possible for customers to deliver flowers in under a minute using their smartphone or computer; going from thought to action is almost instantaneous. As Gelbard says, “Our mission is to make sending and receiving flowers a joy, using technology to turn emotions into an action in the simplest and most beautiful way possible.”

The flowers are just as simple to receive. They’re packed in flat boxes so they can be delivered through letterboxes (or mailboxes) so there’s no need for someone to be on hand to receive them, and they’re sent as closed flower buds for a longer bloom.

While many companies deliver flowers, Bloom & Wild differentiates itself by offering a smooth customer experience for everyone, as well as competitive pricing, with significantly cheaper blooms than average.

Bloom & Wild communicates its value proposition so clearly that its customers perform much of the hard task of marketing for them through word-of-mouth referrals.

When Airbnb began to disrupt the hospitality industry, it needed to market to two separate groups: guests who wanted a place to stay and hosts who wanted to rent out their spaces. Their two-in-one value proposition: Travelers benefit from a truly local experience and hosts benefit from extra income.

In their own words, “Airbnb exists to create a world where anyone can belong anywhere, providing healthy travel that is local, authentic, diverse, inclusive and sustainable.”

Their rooms often have more character than hotels, and they’re usually located in neighborhoods people live in. Guests learn from local knowledge shared by hosts and feel at home wherever they go. These different sources of value wrap together into Airbnb’s tagline: Belong Anywhere.

As a business goes through different stages of growth, its value proposition is likely to change, too. Originally marketed as much cheaper than staying in a hotel, Airbnb has now become an experience-driven, mainstream staple with a premium wing called “Airbnb Plus,” with its own value proposition.

4. Fjällräven

The classic Swedish outdoor clothing and equipment company Fjällräven was founded by Åke Nordin in 1960. He designed functional (and warm) products for professional researchers taking expeditions into northern Scandinavia.

Now, the 60-year-old brand is experiencing a resurgence amongst younger generations across Europe and North America. Their core proposition is that they sell high-quality, sustainably made products that balance form and function. Yes, customers look great wearing their backpacks and they can still hike up a mountain in the middle of winter.

Their commitment to sustainable business practices appeals to the same conscious consumers who value the outdoors, which fortifies their value proposition. Fjällräven manufactures many of its own products using its own G-1000 material, as well as its own Greenland Wax, contributing to its value proposition of offering quality and durability.

Because they “craft products for a lifetime of memories,” customers are more than willing to pay their premium prices.

5. Juniper Print Shop

When Jenny Komenda launched her first blog, Little Green Notebook, in 2007, she was a young designer sharing her DIY projects with the world. An entrepreneur at heart, Komenda evolved her skillset and online following into another award-winning blog, Juniper Home, and its beloved counterpart, Juniper Print Shop .

Komenda built a cohesive brand that championed affordable design and spoke to a key value proposition that motivated her customers: helping non-designers create a beautiful home without breaking the bank.

Her content answers this question in thousands of different ways, and the new arm of her business offers a simple fix for finding affordable art — one of the most difficult challenges along the way. She launched a print shop featuring the work of women artists and photographers with simple digital downloads and physical prints that are cost-effective and easy to install.

Juniper’s value proposition comes to life in the details of the print shop — from links to affordable IKEA frames — and Jenny’s one-of-a-kind suggestions (buy a vintage frame, invest in a custom mat).

6. Found My Animal

Found My Animal is a company for rescue dogs and their owners. In 2006, Bethany Obrecht and Anna Conway met by coincidence — they both had rescue dogs named Walter, and they quickly became friends.

Their shared interest in crafts (and a fisherman relative) led the two dog moms to design and create leashes from nautical rope that withstand hundreds of pounds of pull. Each leash has a brass tag with the word “FOUND” written on it in simple font.

The company has since expanded their product lines to include other dog accessories and supplies like dog beds, totes, and toys.

Found My Animal’s value proposition is simple: Support a company that donates a portion of its profits to animal rescue groups by outfitting your own rescue in quality products. The company has given money (and leashes) to over 64 nonprofit organizations that help abandoned or neglected pets, so customers know their purchases are making a difference.

This value proposition is baked into every aspect of Found My Animal, especially their marketing. Their team features rescue dogs in need of homes front and center on their website and their social media accounts. Plus, their social media tag #foundmyanimal brings awareness to animal adoption.

They even launched The Rescue Orange Project: A buy-one-donate-one leash program. For dog owners who are as devoted to rescuing other pups as they are to their own, buying from this company is a no-brainer.

The best value propositions evolve with your customers

Now that you can answer the question “What is a value proposition?” a few different ways, you’re ready to get to work. Even if you already have a value proposition in place, consider carving out the time to revisit it.

As customers and markets change over time, your company should evolve as well. Rather than make assumptions about your community based on their past needs and buying behaviors, create feedback loops so you’re always in the know.

By listening to customers in real time, you set your company up to evolve its value proposition and meet the needs of your community as it grows.

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Elizabeth wellington.

Liz writes about business, creativity and making meaningful work. Say hello on Twitter or through her website.

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How to Write a Great Value Proposition [7 Top Examples + Template]

Published: January 31, 2024

Your company's value proposition is the core of your competitive advantage. It clearly articulates why someone would want to buy from your company instead of a competitor.

So how do you actually write a value proposition statement that's strong enough to lift conversion rates and sales? In this article, you'll learn the definition of a value proposition, what a value prop isn't, examples of some of the best value props we've seen, and tactics to create amazing value props.

We'll cover:

What is a value proposition?

• Value Proposition vs Mission Statement (vs Others)

Elements of a Value Proposition

How to write a value proposition.

• How to Create a Value Proposition Canvas

Value Proposition Templates

Value proposition examples, value proposition canvas examples, tactics to develop an effective value proposition.

• Let's summarize: What makes a good value prop?
• Value Proposition FAQs

A value proposition is a short statement that communicates why buyers should choose your products or services. It's more than just a product or service description — it's the specific solution that your business provides and the promise of value that a customer can expect you to deliver.

Value propositions are one of the most important conversion factors. A great value proposition could be the difference between losing a sale — and closing it.

For that reason, it's important to create one that accurately represents your products and services and makes it clear why you're the best choice. However, writing it from scratch is hard. Download our templates below so you can follow along with the rest of the post.

Free Value Proposition Templates

15 templates to help you brainstorm, write, and promote your value prop.

• Value Proposition Writing Templates
• Value Proposition Canvas Template
• Brand Hierarchy Template

You're all set!

Click this link to access this resource at any time.

Your value proposition is a unique identifier for your business. Without it, buyers won't have a reason to purchase what you sell. They may even choose a competitor simply because that business communicates its value proposition clearly in its marketing campaigns and sales process .

That said, you might think: Isn't my value prop interchangeable with, say, my slogan?

Nope. It's easy to confuse your value proposition with other similar brand assets , such as your mission statement, slogan , or tagline. We break down the differences below.

Value Proposition vs Mission Statement

Your value proposition details what you offer customers and why they should choose you, while a mission statement details your objective as an organization. While the two can have points in common, a value prop is more product- and service-oriented while a mission statement is more goal-oriented.

Here are two examples for HubSpot and our CRM platform:

Value Proposition: "An easy-to-use CRM."

Mission Statement: "To help businesses grow better."

Value Proposition vs Slogan

A slogan is a short, catchy statement that brands use in marketing campaigns to sell a specific product. While your value proposition wouldn't necessarily go in an ad (at least, not usually), a slogan would. The most important thing to note is that a company can have different slogans for different campaigns or products.

Here are two examples from De Beers Group:

Value Proposition: "Exquisite diamonds, world-class designs, breathtaking jewelry."

Slogan: "A diamond is forever."

Value Proposition vs Tagline

A tagline is a short statement that embodies a certain aspect of your brand or business. While a value proposition is more concrete, a tagline can represent a concept or idea that your business stands for. Most businesses have only one tagline that is instantly recognizable and connected to their brand.

Here's an example from Apple:

Value Proposition: "The best experiences. Only on Apple."

Tagline: "Think Different."

Value Proposition vs Mission Statement vs Slogan vs Tagline

Now, let's look at an example of a business that has all four: Nike. Remember that slogans can differ depending on the campaign.

Value Proposition: "Customizable performance or lifestyle sneakers with unique colorways and materials."

Mission Statement: "To bring inspiration and innovation to every athlete in the world."

Slogan: "Twice the guts. Double the glory."

Tagline: "Just do it."

TLDR; While your value prop should help differentiate you from the rest of the industry, keep in mind it's not a slogan , tagline, or mission statement. Those types of copy are important accessories to your brand, but your potential customers and employees don't choose one business over the other solely based on these elements.

Your value proposition goes deep into the problems you want to solve for buyers, and what makes your product or service the perfect solution.

Your value proposition will most often appear on your website. While you can include it on marketing campaigns and brochures, the most visible place is your home page and, if you'd like, your product pages.

There are three main elements of a value proposition: the headline, the subheadline, and a visual element.

The headline of your value proposition describes the benefit the customer will receive as a result of making a purchase from your business. The headline can be creative and catchy, but it should be clear and concise, first and foremost.

Subheadline or Paragraph

The subheadline or paragraph should explain in detail what your company offers, who it serves, and why. In this section, you can elaborate on the information in the headline.

Visual Element

In some cases, a video, infographic, or image may convey your value proposition better than words alone can. Enhance your message with these visual elements to capture your audience's attention.

To better visualize these tools, here are a couple templates to follow when formatting a value proposition.

• Identify your customer's main problem.
• Identify all the benefits your product offers.
• Describe what makes these benefits valuable.
• Connect this value to your buyer's problem.
• Differentiate yourself as the preferred provider of this value.
• Use a template to help you brainstorm.

If you're a visual learner, check out this video to learn how to create a value proposition. 

Step 1: Identify your customer's main problem.

While this will require some upfront research, you can get a head start on this aspect of the value proposition by speaking with different members of your team. Customer service reps, marketing specialists, and salespeople can fill in the gaps about what problems your customers are looking to solve by using your product or service.

For example, let's say your business sells tax software on a subscription basis and automated templates are included in the software package. Your ideal customer is looking for an affordable and user-friendly way to access complicated tax documents for their business. In this example, your business's offerings could be the solution they need.

Step 2: Identify all the benefits your products offer.

This step can be as simple as listing out every product you sell and describing its primary benefit. The benefit should be concise and focused on a single customer need.

In our tax software example, you'd list each tax template, explain the benefit it provides, and why a customer would need it.

Step 3: Describe what makes these benefits valuable.

Next, add another sentence that explains why this benefit matters to the customer.

Using the same example above, the value would be that customers have affordable tax documentation at their fingertips — something that would normally cost them thousands of dollars.

Step 4: Connect this value to your buyer's problem.

Next, pair the buyer's problem to the elements that make your product or service valuable. Do they align? If so, you're ready to refine your value proposition to differentiate your offerings from the competition. If they don't align, repeat the steps above until you find a valid buyer need and a viable solution your business offers to meet that need.

There are three templates we think do an excellent job of connecting value to buyer pain points:

Step 5: Differentiate yourself as the preferred provider of this value.

Finally, polish your value proposition to make it unique. Is there a specific customer service offering your business provides that others don't? Do you offer any additional services that other companies charge for? These elements can help differentiate your value proposition from competitors while keeping the focus on the buyer's needs.

Step 6: Use a template to help you brainstorm.

Once you understand the first five steps, you can easily implement them into value proposition templates.

Steve Blank Method

Instead of focusing on the features themselves, Blank saw the need to emphasize the benefits derived from the features in a simple sentence. By following this formula you'll connect the target market and their pain points to the solution:

"We help (X) do (Y) by doing (Z)"

Geoff Moore Method

Moore provides a template that's more specific in identifying the industry categories alongside the benefits customers value. This makes a more clear value proposition formula as follows:

"For [target customer] who [needs or wants X], our [product/service] is [category of industry] that [benefits]"

Harvard Business School Method

According to HBS a value proposition is executed best when it answers the following questions:

• "What is my brand offering?"
• "What job does the customer hire my brand to do?"
• "What companies and products compete with my brand to do this job for the customer?"
• "What sets my brand apart from competitors?"

HubSpot Value Proposition Templates

HubSpot offers 15 free templates to help you brainstorm the perfect value proposition for your brand. Not only can they help you hone in on your business's core values, but they can also give you a boost when working on your actual statement.

Some questions you will ask yourself when using the HubSpot templates include:

• "Why do you do what you do?"
• "How do you do what you do?"
• "What do you do for your customers?"

Download for Free

Now, before you write the statement itself, it's important to create a value proposition canvas.

Taking these three elements into consideration, you'll be able to make your own after you build a value proposition canvas.

Value Proposition Canvas

A value proposition canvas is a visual tool that helps you position your business's product or service around your customers' needs. The goal of the value proposition canvas is to identify how your business provides value within the market. You can use one when introducing a new offer into the market or when enhancing an existing one.

The value proposition canvas is made up of two major components: the customer profile and the value map.

Here's how to make one:

Step 1: Create a customer profile to represent your target buyer.

The customer profile makes up the first half of the value proposition canvas. When performing this exercise, you'll want to start with this section first so that their wants and needs can influence the overall value proposition canvas.

The customer profile consists of three areas:

Customer Jobs

What is the task your customer needs to complete or the problem they're trying to solve with your product or service? The answer to this question sums up the "customer job" or the purpose of your product or service in the eyes of the customer.

Customer Expectations

"Expectations" are also referred to as "gains" — in other words, what your customer is hoping to gain from doing business with you. No matter what you sell, your ideal customer will have an expectation of what that product or service will do for them. In this section, you'll use research to explain what your customers expect from you in order to purchase your product.

Customer Pain Points

As your customer completes their "customer job," what pains do they experience? Do they take any risks while they do the customer's job? Do they experience any negative emotions? These pain points should be considered so that you include the most helpful products and services on the value map side of the value proposition canvas.

Step 2: Create a value map for your products and services.

In this section of the value proposition canvas, three specific sectors help describe what the business offers to the customer.

Gain Creators

These are features your products or services have that make the customer happy. Think creatively about the elements of happiness your customers experience. Consider their financial and social goals as well as their psychographics .

Pain Relievers

In the section above, we discussed customer pains. This section will define exactly how your business will help them overcome those pain points.

Products & Services

While this section won't list every single product or service your company offers, it should include the ones that will create the most gain and alleviate the most pains for your customers.

Step 3: Determine value proposition-customer fit.

Once you've completed the value proposition canvas exercise, the next step will be to determine how your value proposition fits within the customer profile. To do this, you'll use a ranking process that prioritizes products and services based on how well they address the customer profile.

All together, your value proposition canvas should look like this:

Next up, let's go over some templates you can use when you're creating your value proposition and publishing it on your website.

We've crafted 15 templates to help you create an amazing value proposition for your brand — and pairing each of them with an example of how they may look for a real business.

This offer has all the tools you need to craft a value proposition that precisely communicates your brand to users and stakeholders, including:

• 10 value proposition writing templates
• 1 value proposition canvas template
• 1 mission statement brainstorm template
• 1 vision statement brainstorm template
• 1 competitive analysis template
• 1 brand hierarchy template

Click here to download these free value proposition templates for your business.

Now that we've reviewed the elements, visual tools, and templates — let's look at some brand examples that effectively identify and satisfy its customer needs.

• HubSpot: An Easy-to-Use CRM
• FedEx: Manage Your Home Deliveries
• LG: State-of-the-art Living Experience
• Subaru: The most adventurous, most reliable, safest, best Subaru Outback ever
• Samsung: Get Ready to Unfold Your World
• Imperfect Foods: Groceries that help you fight food waste
• Hulu: All The TV You Love

Because value propositions are typically internal information and rarely stated publicly, finding a value proposition example to model yours after can be difficult. We've taken the liberty of using the value proposition canvas and applying it to some successful companies that have been recognized by the American Customer Satisfaction Index (ASCI).

In these examples, you'll see real-world instances of customer gains and pains aligned with well-known products and services offered by these companies.

1. HubSpot: "An easy-to-use CRM."

Headline: "An easy-to-use CRM."

Subheadline/Paragraph: "HubSpot's CRM platform has all the tools and integrations you need for marketing, sales, content management, and customer service."

Visual Element:

Most companies can benefit from using a CRM — even freelance businesses and small family-owned firms. The problem is that most systems are expensive, over-complicated and cobbled together, creating challenges for businesses as they grow.

HubSpot's value proposition aims to target active CRM users who are tired of handling over-complicated systems, and beginners who are intimidated by legacy options. These users want a system that makes growth easier, not harder.

While each product in HubSpot's CRM platform can be used individually, the true benefit comes from using each hub in tandem. Instead of having to deal with incompatible software and productivity tools, you can manage all your marketing, sales, content, and customer service needs in one place. To that end, the product's value proposition emphasizes its ease-of-use and ability to synchronize different teams across the business.

The brand includes an image of a smiling woman to show what it would be like to use the product in your team (hint: it's so easy, it'll make you smile).

2. FedEx: "Manage your Home Deliveries"

Headline: "Manage Your Home Deliveries"

Subheadline/Paragraph: Sending and receiving packages is convenient and safe for individuals who want to ship ideas and innovations across the globe.

Image Source

If you own a business, shipping and packaging products is likely a significant part of your operations, but it can be a time-consuming, labor-intensive, and plain inconvenient process. If you're a consumer, you've likely experienced driving to a shipping office to get your package after a missed delivery. Both of these are significant pain points for FedEx's target customers.

With FedEx, you can opt to receive notifications about your package's delivery status, provide instructions on how to deliver packages to your home, or even request to pick up at a different location.

Shipping packages with FedEx is just as easy as receiving them. All you have to do is create a shipping label on FedEx's website, choose which shipping service you'd like to use, and then drop your package off. Even if there isn't a FedEx office nearby, you can still drop off at national retailers like Walgreens, Dollar General, OfficeMax, and Walmart.

FedEx's value proposition makes it clear that it will make managing your deliveries much, much easier — whether you're a business or a consumer.

3. LG SIGNATURE: "State-of-the-art Living Experience"

Headline: "State-of-the-art Living Experience"

Subheadline/Paragraph: LG SIGNATURE delivers an innovative product design that creates an exceptional living experience for people who want to achieve a state-of-the-art living experience.

The right home appliances can make your at-home experience easy and hassle-free — or it can quickly create headaches with low power efficiency and outdated features. In its value proposition, LG SIGNATURE targets customers who are willing to spend just a little more on the right appliance in exchange for a comfortable, hassle-free, and luxurious experience.

LG SIGNATURE isn't your typical appliance brand. It doesn't want to sell you a bunch of products you don't need with unnecessary features you won't use. Instead, it's dedicated to crafting premium products that are functional, user-friendly, and aesthetically pleasing.

Even the imagery helps you imagine what your life would be like after purchasing an LG SIGNATURE appliance. Instead of having to replace obsolete appliances every few years, you can enjoy innovative, long lasting products.

4. Subaru: "The most adventurous, most reliable, safest, best Subaru Outback ever."

Headline: "The most adventurous, most reliable, safest, best Subaru Outback ever."

Subheadline/Paragraph: The 2022 Subaru Outback takes drivers to the most adventurous places in style with the most advanced safety technology.

Subaru knows that its target audience uses its Outback SUVs for outdoor adventures. Rather than designing a vehicle solely for utility, Subaru made the 2022 Outback attractive and spacious enough for everyday use as well as reliable and sturdy enough for all terrain and weather conditions.

So in its value proposition, it makes it clear that the Outback will help its drivers go off the road safely and in style. If I were a potential Subaru customer, I'd know exactly what I'm getting from the headline alone. That's why it's so important to think about your wording, because it's likely the first thing potential buyers will see.

5. Samsung: "Get Ready to Unfold Your World"

Headline: "Get Ready to Unfold Your World"

Subheadline/Paragraph: This is everything you'd want in a premium, durable, 5G smartphone. Then we made it unfold — revealing a massive screen so you can watch, work and play like never before.

In its value proposition, Samsung effectively targets its most tech-savvy segment by front-lining its most innovative design to date: a foldable phone that can double as a mini-tablet. Even more, it solves a common pain point for some customers: owning both a tablet and a mobile device can feel unnecessary, so why not get the best of both worlds?

The Galaxy Z Fold4 attracts customers by promising a lightweight, durable smartphone with an ultra powerful processor.

Some of its premium features include hands-free video capabilities, a large screen that's perfect for multitasking, and an advanced camera that's perfect for taking pictures at night. The phone is also crafted with high quality materials that help protect it from water damage, scrapes, and scratches. Plus, its unique design will appeal to anyone who appreciates cutting-edge technology.

6. Imperfect Foods: "Groceries that help you fight food waste"

Headline: "Groceries that help you fight food waste"

Subheadline: "Sustainably sourced, affordable, and conveniently delivered to your door."

Whether you're shopping for an entire family or just yourself, grocery shopping can be a major pain.

Planning out all your meals for the week can be overwhelming and time-consuming, especially if you're trying to ensure no food goes to waste. Even if you do successfully create the perfect shopping list, finding the time to go to the store can also be a challenge.

In its value proposition, Imperfect Foods offers a sustainable alternative to traditional grocery shopping. Unlike other delivery services, Imperfect Foods' grocery selections solely consists of food that would have otherwise been discarded due to minor cosmetic and physical imperfections.

Imperfect Foods' website design further communicates its commitment to reducing food waste with its badge counting how many pounds of food it has saved.

The company also appeals to customers' sustainability concerns by delivering to neighborhoods in one trip to reduce CO2 emissions and only using recycled packaging.

7. Hulu - "All The TV You Love"

Headline: "All The TV You Love"

Subheadline: "What full seasons of exclusively streaming series, current-season episodes, hit movies, Hulu Originals, kids shows, and more."

In July 2022, streaming services outperformed cable and broadcast TV for the first time ever. However, as streaming becomes more and more popular, customers are at risk of getting fatigued by the overwhelming amount of on-demand content to choose from.

Hulu's value proposition aims to target TV consumers who are tired of having to pay for multiple streaming services in order to have access to all the content they want to watch. Each Hulu subscriber gets access to a vast catalog of exclusive series, popular movies, original content, and more.

One of the ways Hulu makes good on its promise of providing "all the TV you love" is by offering subscription bundles with ESPN+ and Disney+, which can save consumers money if they were to subscribe to each service separately. Hulu also has premium network add-ons that give users access to even more content without having to leave the platform.

Samsung's value proposition for its foldable mobile device is smart, well-targeted, and visually stunning.

You've seen some brilliant value proposition examples, now let's review some examples of value proposition canvases.

• HubSpot Value Proposition Canvas
• FedEx Value Proposition Canvas
• LG Value Proposition Canvas
• Subaru Value Proposition Canvas
• Samsung Value Proposition Canvas
• Imperfect Foods Value Proposition Canvas
• Hulu Value Proposition Canvas

1. HubSpot Value Proposition Canvas

Customer Profile

• Customer Jobs: HubSpot customers need to effectively enable their sales teams to do their best work while avoiding complicated workflows.
• Gains: Customers want to increase their sales rep productivity levels and boost sales.
• Pains: There are plenty of CRM options, but they're often over complicated and create silos.
• Gain Creators: The HubSpot CRM platform offers streamlined contact management software and productivity tools that will help sales teams do their best work.
• Pain Relievers: The user-friendly interface and unified platform offers ease-of-use and high visibility across systems.
• Products & Services: The HubSpot CRM platform includes Sales Hub, an enterprise-level sales software that's simple yet powerful enough to cater to the needs of businesses small and large.

2. FedEx Value Proposition Canvas

• Customer Jobs: FedEx customers want to share ideas and innovations with other individuals by shipping goods around the world.
• Gains: Customers want a hassle-free way to return online orders and are looking for a safe and secure way to receive their packages.
• Pains: Returning a package at a FedEx shipping center can be inconvenient, and managing home deliveries can be a hassle.
• Gain Creators: Customers can drop off their FedEx packages at places they shop most like Walgreens or Dollar General, and have peace of mind knowing where their package is at all times.
• Pain Relievers: Thousands of FedEx drop-off locations across the country, receive notifications when a package is en route and inform the driver where to leave the package.
• Products & Services: FedEx Drop Box locations make returning packages convenient, and the FedEx Delivery Manager reroutes or reschedules deliveries to work with the customer's schedule.

3. LG Value Proposition Canvas

• Customer Jobs: LG customers want simple, yet innovative technology that helps them achieve a state-of-the-art living experience.
• Gains: Customers have an intuitive and responsive experience with each appliance they interact with inside their homes.
• Pains: There are too many unnecessary buttons and features on appliances that get in the way of a simple living experience.
• Gain Creators: Customers can use technology to enhance their home experience without needing to read a manual.
• Pain Relievers: LG offers a simple design that focuses on the user and their lifestyle.
• Products & Services: LG SIGNATURE delivers an innovative product design that creates an exceptional living experience.

4. Subaru Value Proposition Canvas

• Customer Jobs: Subaru customers want to explore the world's most adventurous places in a reliable and safe vehicle.
• Gains: Customers want to explore the land in a stylish and spacious SUV and look for advanced technological elements in their vehicles that enhance performance and safety.
• Pains: The safest vehicles are not the most visually appealing, and some SUVs aren't equipped for all-weather or all-terrain environments.
• Gain Creators: Subarus have a stylish exterior and interior with ample ground clearance that protects the vehicle against damage from the environment and advanced technology to reduce crashes and make long road trips safer.
• Pain Relievers: Subarus have a rugged blacked-out trim for style and protection, 9.5-inch ground clearance for better stability and performance, and driver-assist technology that helps drivers see better, prevent crashes, manage cruise control, and brake automatically in emergency situations.
• Products & Services: The 2022 Subaru Outback with standard eyesight assist technology, automatic pre-collision braking, adaptive cruise control, and lane-centering.

5. Samsung Value Proposition Canvas

• Customer Jobs: Samsung customers are tech-savvy and follow the latest trends, driven by efficiency and aspirational lifestyles.
• Gains: Customers want an all-in-one way to enjoy media, work productively, and have a fun experience all in the palm of their hands.
• Pains: Common smartphones have size limitations that strain entertainment viewing, gameplay, and work capabilities.
• Gain Creators: Samsung offers a unique and expansive design with capabilities beyond that of an average smartphone, offering the most advanced technology to help customers perform tasks to fulfill work and play.
• Pain Relievers: Samsung provides a smartphone that displays content in tablet-like viewing and displays up to three apps simultaneously.
• Products & Services: The Galaxy Z Fold3 5G folding 6.2-inch smartphone with dynamic AMOLED 2X screens, ultra-thin glass with S Penfold edition, and super-strong lightweight armor aluminum frame.

6. Imperfect Foods Value Proposition Canvas

• Customer Jobs: Imperfect Foods customers want a simple and sustainable option for buying fresh produce.
• Gains: Customers prefer to have their groceries delivered rather than going to the store each week.
• Pains: Produce can go to waste easily, and grocery delivery is expensive.
• Gain Creators: Imperfect Foods sources and delivers food that would have otherwise been wasted because of minor imperfections.
• Pain Relievers: Waste is minimized by delivering area groceries in one trip and recycling packing.
• Products & Services: Imperfect Foods curated food selection includes produce, pantry staples, dairy products, snacks, plant-based foods, meat, and wellness products.

7. Hulu Value Proposition Canvas

• Customer Jobs: Hulu customers are overwhelmed by the amount of video streaming options and want a platform that has all of their favorite shows and movies in one place.
• Gains: Customers primarily watch movies and TV shows via streaming services.
• Pains: There is an abundance of streaming platforms, and customers can easily get overwhelmed with the amount of TV and movie options.
• Gain Creators: Hulu's streaming library features full seasons of exclusive series, popular movies, original content, and more.
• Pain Relievers: The different subscription plans and premium network add-ons allow customers to curate their streaming experience to their tastes and can help minimize the amount of services they subscribe to.
• Products & Services: All subscription plans include access to Hulu's streaming library, new episodes the day after they air, and ability to stream on different devices.
• Conduct research to determine the value proposition of your competitors.
• Explain the value of your products and services.
• Describe the benefits your ideal customer will experience when they choose your product or service over the competition.
• Develop a unique value proposition for each buyer persona you serve.
• Test your value proposition with your audience using various marketing channels.

1. Conduct research to determine the value proposition of your competitors.

Because your value proposition is the differentiating factor between your business and the competition, it's important to research the propositions of your closest competitors. You can use the value proposition canvas in this post to determine how each company meets the needs of your buyer persona.

Be honest here — it's tempting to focus on the areas in which your competition doesn't excel, but you'll have a better idea of where your product or service fits within the market if you key in on your competitors' strengths.

2. Explain the value of your products and services.

You're probably familiar with outlining the features and benefits of your product and service offerings. This tactic takes that concept a step further. By matching the benefits of your offerings to specific values that your customers have, you'll be able to align what your business provides with what your customers need.

3. Describe the benefits your ideal customer will experience when they choose your product or service over the competition.

When crafting this part of your value proposition, include details about how your product or service will benefit the customer and use examples where you can. Videos, photos, and live demonstrations are all effective ways to illustrate your value proposition because they show the customer exactly what they can expect from your business.

4. Develop a unique value proposition for each buyer persona you serve.

Ideally, you'll be focusing your marketing efforts on a specific target audience. You'll also find that this audience will have different needs based on their buying behaviors. Buyer personas can help you segment your larger audience into groups of customers with similar desires, goals, pain points, and buying behaviors. As a result, you'll need a unique value proposition for each persona. Different products and services you offer may solve certain customer pain points better than others, so developing a value proposition for each persona will better serve each one.

5. Test your value proposition with your audience using various marketing channels.

Each of these tactics will likely be developed internally by your team which means you'll want to validate your work with your target audience. Your value proposition will be communicated through various marketing channels like your website, social media accounts, video, audio, and in person. Test your proposition with members of your audience (both existing customers and non-customers) using each of these channels. Tools like UserTesting can help you streamline this feedback process so that you can implement changes quickly to finalize your value proposition.

We know the makings of a value proposition, so how can you make it a good one? Here's the last three tips we have for you.

What makes a good value proposition?

1. clear language.

Your value proposition should aim to address a primary customer need. This limited focus helps keep your value proposition clear and easy to understand. With just one main idea to comprehend, your audience will be able to quickly decide whether or not your product or service will be the best solution for them.

2. Specific Outcomes

Next, you'll want to communicate the specific outcomes your customer can expect to receive from your product or service. Will they save time? Demonstrate how. Will their workflow become more manageable? Show a before and after workflow diagram. The specific outcomes will be critical components of your value proposition as they'll exemplify exactly how your customers will use your solution to solve their problems.

3. Points of Differentiation

Not only are your potential customers evaluating your business's offerings based on their own needs, but they're also comparing what you offer against competitors. As a result, your value proposition will need to include detailed points of differentiation. These key points will help customers understand exactly what sets your company apart.

Value Proposition Frequently Asked Questions

What is the purpose of a value proposition? To effectively communicate the unique value and benefits that a product or service offers to its target customers to differentiate it from the competition and attract or retain customers.

What if the value proposition fails? If the value proposition fails, it can result in difficulties attracting and retaining customers, losing market share to competitors, and ultimately impacting the product's or service's success and sustainability.

Can you change your value proposition? Yes, a company can change its value proposition by identifying and addressing customer pain points or needs, modifying its product or service offerings, and effectively communicating the new value to its target audience.

Compose a Remarkable Value Proposition

The factors that influence a potential customer to become a loyal customer are limited. Whether your industry has a lot of opportunities to differentiate (like retail) or virtually no unique identifiers (like dairy), you'll find that a value proposition will help you understand your ideal customer and position your business as the best solution for their needs. Use the tactics, tips, framework, and examples in this post to craft your unique value proposition.

Editor's note: This post was originally published in June 2018 and has been updated for comprehensiveness.

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How to Create an Effective Value Proposition

• 28 Jul 2020

Starting a business comes with many unknowns, but the value of your brand shouldn't be one of them.

Before launching a venture, all entrepreneurs should determine what market need their product or service fulfills, and what separates their offering from other available options. Without this differentiation and definition of opportunity, a new business isn't likely to succeed.

To communicate the need your product fills and its differentiating factors, you need to create an effective value proposition.

Before diving into how to craft yours, here's a look at what a value proposition is and why it's important for your business.

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What Is a Value Proposition?

A value proposition is a statement that conveys what a brand does and how it differs from competitors. It's typically developed as part of a broader marketing strategy and no more than a few sentences long. The initial proposition can be bolstered with statistics and facts that prove the brand's stated value.

Having a value proposition is important because it clearly and concisely communicates what customers can gain from selecting your brand over that of your competitors. This statement can be used in several ways, including:

• On your company's website to help convert potential leads into customers
• When pitching your company to investors
• As an answer to the question, "So, what exactly does your company do?"

As an entrepreneur, it's your job to be your organization's number one advocate and garner the support of others. A short, clear value proposition can stick in the minds of investors, potential customers, friends, and relatives, ensuring your brand's value isn't lost in translation.

To begin crafting your brand's value proposition, start with an understanding of the jobs to be done theory.

Related: 6 Questions to Ask Before Starting a Business

Understanding Your Customers' Jobs to Be Done

The jobs to be done theory was developed by Harvard Business School Professor Clayton Christensen. It asserts that customers "hire" products and services to get "jobs" done, rather than purchasing them based on their attributes and buying behaviors.

"A 'job to be done' is a problem or opportunity that somebody is trying to solve," Christensen says in the online course Disruptive Strategy . "We call it a 'job' because it needs to be done, and we hire people or products to get jobs done."

One example of a successful brand that's used this framework is Warby Parker , founded in 2010 by Neil Blumenthal, Dave Gilboa, Andy Hunt, and Jeff Raider.

The eyeglass company got its start when one of the founders lost his glasses on a backpacking trip. Unable to swing the steep price of a new pair, he spent the next semester " squinting and complaining " to three of his friends, who realized they had been in similar situations.

"We were amazed at how hard it was to find a pair of great frames that didn't leave our wallets bare," Warby Parker states on its website . "Every idea starts with a problem. Ours was simple: Glasses are too expensive."

This statement describes the job to be done discovered by Warby Parker's founders. They realized people had a need to purchase affordable eyewear and, after some research, found there weren't many options in the market.

"Understanding that the same company owned LensCrafters and Pearle Vision, Ray-Ban and Oakley, and the licenses for Chanel and Prada prescription frames and sunglasses—all of a sudden, it made sense to me why glasses were so expensive," Gilboa explains in an interview with Forbes .

The team decided to take things one step further by adding a social justice component to their business model. For every pair of eyeglasses purchased, Warby Parker donates a pair to someone in need.

"There's nothing complicated about it," the company states on its website . "Good eyewear, good outcome."

This satisfies another job to be done: providing customers with a convenient means of helping others. This dual-pronged jobs to be done framework proved to be a success, as the team hit its first-year sales goal in just three weeks .

Warby Parker continues to build its value around jobs to be done and can expect its customers' needs to "purchase affordable eyewear" and "help others in a convenient way" to endure.

"Because a job to be done remains stable over time, it provides a North Star in innovation," Christensen says.

When crafting your brand's value proposition, think about the job to be done it addresses. How does its value center on a persisting need you can fill in a unique way? It's this positioning that can allow your brand to provide the same value for customers as the market advances.

Related: Jobs to Be Done: 4 Real-World Examples

Creating a Value Proposition

You can use the jobs to be done framework as a starting point to craft your brand's value proposition.

Ask yourself:

• What is my brand offering?
• What job does the customer hire my brand to do?
• What companies and products compete with my brand to do this job for the customer?
• What sets my brand apart from those competitors?

For example, Warby Parker's founders could answer these questions as follows:

• Warby Parker offers affordable designer eyewear, including contacts.
• Customers hire Warby Parker to provide high-quality eyewear at affordable prices and give back to the community in a convenient way.
• All other eyewear brands compete with Warby Parker.
• Warby Parker's commitment to giving back to the community and its affordable prices set it apart from competitors.

Next, summarize your points in a clear, concise value proposition. Continuing the example above, Warby Parker's value proposition, as published on its home page , is:

“Buying eyewear should leave you happy and good-looking, with money in your pocket. Glasses, sunglasses, and contacts—we’ve got your eyes covered.”

This value proposition is reinforced throughout the company's website, along with its stated commitment to social justice :

“Warby Parker was founded with a rebellious spirit and a lofty objective: to offer designer eyewear at a revolutionary price, while leading the way for socially conscious businesses.”

To ensure your value proposition is effective, consider running it by a few people who are unfamiliar with your business. If confusion arises, edit your statement to address those points.

Once you have a value proposition you're proud of, make it known. Publish it on your website, incorporate it into your marketing materials, and memorize it for sharing during networking events, pitch opportunities, and dinner conversations.

Related: 3 Disruptive Strategy Skills For Entrepreneurs and Business Leaders

Setting Yourself Up for Success

By positioning your brand as a solution to a job to be done, you can set your company up for success. Creating a value proposition is a reflective exercise that prompts you to take stock of the need your brand fills, who your competitors are, and how you provide a different experience from other products and services.

Condensing these reflections into a succinct value proposition can enable you to convert leads into customers, effectively pitch to investors, and communicate the value of your brand at scale.

Do you want to craft winning, innovative strategies? Explore Disruptive Strategy , one of our online entrepreneurship and innovation courses . If you aren't sure which course is the right fit, download our free course flowchart to determine which best aligns with your goals.

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What Is a Value Proposition?

Understanding value propositions, special considerations, frequently asked questions.

• Value Proposition FAQs
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Value Proposition: How to Write It With Examples

A value proposition in marketing is a concise statement of the benefits that a company is delivering to customers who buy its products or services. It serves as a declaration of intent, both inside the company and in the marketplace.

The term value proposition is believed to have first appeared in a McKinsey & Co. industry research paper in 1988, which defined it as "a clear, simple statement of the benefits, both tangible and intangible, that the company will provide, along with the approximate price it will charge each customer segment for those benefits."

Key Takeaways

• A company's value proposition tells a customer the number one reason why a product or service is best suited for that particular customer.
• A value proposition should be communicated to customers directly, either via the company's website or other marketing or advertising materials.
• Value propositions can follow different formats, as long as they are "on brand," unique, and specific to the company in question.
• A successful value proposition should be persuasive and help turn a prospect into a paying customer.

Investopedia / NoNo Flores

A value proposition stands as a promise by a company to a customer or market segment . The proposition is an easy-to-understand reason why a customer should buy a product or service from that particular business. A value proposition should clearly explain how a product fills a need, communicate the specifics of its added benefit, and state the reason why it's better than similar products on the market. The ideal value proposition is to-the-point and appeals to a customer's strongest decision-making drivers.

Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain a company's economic moat . An economic moat is a competitive advantage. The moat analogy—coined by super-investor  Warren Buffett of Berkshire Hathaway—states that the wider the moat, the bigger and more resilient the firm is to competition.

A great value proposition demonstrates what a brand has to offer a customer that no other competitor has and how a service or product fulfills a need that no other company is able to fill.

Components of a Value Proposition

A company's value proposition communicates the number one reason why a product or service is best suited for a customer segment. Therefore, it should always be displayed prominently on a company's website and in other consumer touch points. It also must be intuitive, so that a customer can read or hear the value proposition and understand the delivered value without needing further explanation.

Value propositions that stand out tend to make use of a particular structure. A successful value proposition typically has a strong, clear headline that communicates the delivered benefit to the consumer. The headline should be a single memorable sentence, phrase, or even a tagline. It frequently incorporates catchy slogans that become part of successful advertising campaigns .

Often a subheadline will be provided underneath the main headline, expanding on the explanation of the delivered value and giving a specific example of why the product or service is superior to others the consumer has in mind. The subheading can be a short paragraph and is typically between two and three sentences long. The subheading is a way to highlight the key features or benefits of the products and often benefits from the inclusion of bullet points or another means of highlighting standout details.

This kind of structure allows consumers to scan the value proposition quickly and pick up on product features. Added visuals increase the ease of communication between business and consumer. In order to craft a strong value proposition, companies will often conduct market research to determine which messages resonate the best with their customers.

Value propositions can follow different formats as long as they are unique to the company and to the consumers the company services. All effective value propositions are easy to understand and demonstrate specific results for a customer using a product or service. They differentiate a product or service from any competition, avoid overused marketing buzzwords , and communicate value within a short amount of time.

For a value proposition to effectively turn a prospect into a paying customer, it should clearly identify who the customers are, what their main problems are, and how the company's product or service is the ideal solution to help them solve their problem.

What Is the Purpose of a Value Proposition?

A value proposition is meant to convince stakeholders, investors, or customers that a company or its products or services are worthwhile. If the value proposition is weak or unconvincing it may be difficult to attract investment and consumer demand.

What Is an Employee Value Proposition?

An employee value proposition (EVP) applies to the job market. Here, a company that is hiring will try to frame itself as a good place to work, offering not only monetary compensation but also a range of benefits, perks, and a productive environment. In return, the job candidate will need to convince the hiring company that they have the appropriate skills, experience, demeanor, and ambition to succeed.

What Happens if a Value Proposition Fails?

If a company cannot convince others that it has value or that its products or services or valuable, it will lose profitability and access to capital and may ultimately go out of business.

Lanning, Michael J., and Edward G. Michaels. "A business is a value delivery system."  McKinsey staff paper  No. 41. July, 1988.

CNBC Warren Buffett Archive. " Morning Session - 1995 Meeting ."

Alexander Osterwalder et al. " Value proposition design: How to create products and services customers want. Vol. 2." John Wiley & Sons, 2015.

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10 Best Value Proposition Examples (and How to Create a Good One)

Consumerism in 2022 and beyond is serious business.

Shoppers are inundated with options, which means competition among businesses can get pretty fierce.

According to research, you only have 15 seconds to wow a new website visitor before they potentially lose interest and leave.

That’s why your value proposition is so important – if you can’t prove your worth fast, you’ll unfortunately be left in the dust.

But what is a value proposition , and how do you go about ensuring that you’re nailing yours?

That’s just what we’ll do in this article.

I’ll define the term and walk you through 10 awesome brand value proposition examples. Then, I’ll give you some pointers on how to create a value proposition for your own business.

Let’s do this.

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What Is Value Proposition?

In a nutshell, your value proposition is a succinct explanation or illustration of why a customer should do business with you.

Your value proposition should cover three elements:

• The promise of what you’ll deliver to your customers
• The benefits that your customers will reap
• Why they should choose you over your competition

There’s no “correct” approach to creating a value proposition.

But there’s a big rule to follow: your business value proposition should be among the first things website visitors see when they interact with your business.

This means that you should aim to put this information above the scroll on the homepage of your website, which is the area that visitors see first when the page loads, before they scroll down the rest of the page.

And those messages should be reinforced throughout many – if not all – of the touchpoints in your customer’s journey with your brand.

If you have one, your value proposition should also include your unique selling proposition , or the thing that sets you apart from all of your competitors.

To give you a better idea of the many ways to express a strong value proposition, let’s look at some awesome examples.

10 Best Value Proposition Examples

Shopify’s customer value proposition essentially says that it can do everything you need it to, all on a single platform.

This speaks to some of the fundamental needs and concerns of someone who’s starting a new business : it can all get real overwhelming, real fast.

But Shopify soothes that anxiety and comforts visitors in knowing that they have a helping hand.

The company’s website says that the platform supports customers “from first sale to full scale,” and features everything you could need to start, sell, market, and manage your business.

To back it all up, those four items have their own page in the website’s main navigation, allowing users to directly explore how Shopify can help with each of those facets of starting, running, and growing a business.

2. Luxy Hair

Luxy Hair does a solid job of “selling” its clip-in hair extensions below the scroll on their homepage.

The product value proposition starts with an “As seen and featured in” section that lists out all the big names that have promoted the brand, like Teen Vogue, The Huffington Post, BuzzFeed, and Glamour.

This technique is called social proof , and it’s a slam-dunk approach for generating trust fast.

The site goes on to give five strong points that explain the product, its benefits, and how it solves the common pain points that many people face when looking for the right hair extensions.

It also shows great “before and after” photos for a visual display of real results.

3. charity: water

The non-profit organization charity: water is dedicated to providing communities around the world with clean drinking water.

The company’s leaders state that they believe they can end the water crisis during our lifetime. Above the scroll of the website, you see a headline that says that 100% of your donations will go to the cause.

This is an example of using their company value proposition to cut straight to the heart of controversy in the non-profit sector. A lot of organizations use donations to cover their operational costs, which can upset some donors when they discover that only a portion of their donation went to the cause.

4.  Crossrope

Crossrope is a unique jump rope with a very clear product value proposition. They flat-out say that they’ve perfected the jump rope with “meticulous engineering” and “hours of testing.”

It’s clear that the makers behind the Crossrope have put a lot of work into it, and they clearly explain the elements of their design that make these workout tools unique and high-quality.

Right below the fold on the homepage, you’ll see four points that support why it’s the perfect jump rope: they’re weighted, durable, interchangeable, and they have high-performance handles.

The company also has clever names for the two types of Crossrope: the “Get Lean” set and “Get Strong” set. These differentiate the two types while clearly stating the benefit for the customer.

5. Evernote

Everyone is busy. Evernote’s homepage showcases right off the bat how it can help save you time and boost your efficiency on a daily basis.

It immediately speaks to the key desires of their customers, which include things like effortless organization, taking notes anywhere, sharing them with anyone, and finding all of their information faster.

Anyone with their notes scattered around various physical notebooks, emails, and Word docs can attest that this is an inconvenient problem, which makes Evernote’s promises all the more appealing.

Plus, the call to action (CTA) button brings you straight to a free signup, which is extremely useful for proving value in the face of competitors.

6. ClassPass

Above the scroll on the company’s homepage, ClassPass swiftly gives you the key benefits of their business model:

• There’s no need to commit to a single gym or type of workout
• You can choose any gym or workout directly through the ClassPass app

This tool fulfills a specific niche in the health and fitness industry, which is that some people find it inconvenient to limit their fitness options to a single location or type of gym or studio.

Sometimes you just wanna take a Krav Maga class on Monday and a Bikram yoga class on Wednesday. And no one’s judging you for that.

As you scroll down the homepage, you find more juicy benefits and unique selling points like the ability to save on drop-in rates and the ability to stream classes from home for free.

7. hardgraft

Hardgraft has a beautiful website that showcases everything that it promises it’s about: “luxury lifestyle accessories with down to Earth aesthetics.”

The headline also notes that the company is “driven by instinct,” which suggests that the products are a natural extension of the lifestyle they cater to.

It instills confidence in the reader by saying something like, “Relax, we’re experts. We’ve got this.”

This is a good example of a brand value proposition that’s short, but extra sweet – too many words here would probaby lessen the luxurious image they’re after.

8. Crazy Egg

Crazy Egg is a website optimization platform that offers heatmaps and A/B testing .

Above the scroll on the homepage, the website says that you can instantly make your website better.

I don’t know about you, but that strikes me as a pretty enticing offer.

Of course, you’ll need to be sure that you’re putting your money where your mouth is when you make a bold claim like this – which is what Crazy Egg goes on to do.

The next line says that over 300,000 customers use the platform, and how they make their websites better (improving what’s working, fixing what isn’t, and testing new ideas).

This follows right into the ability to get a 30-day free trial to see for yourself.

9. Manitobah Mukluks

Manitobah Mukluks has a more purpose-driven story and brand value proposition than many other ecommerce stores .

On the homepage of the website, you’ll learn that the company is Indigenous-owned, with products that are handmade by Indigenous artists who receive 100% of the proceeds.

The company states its vision above the scroll, which is to build a vibrant brand that impacts Indigenous communities.

Throughout the website, the team at Manitobah Mukluks does a great job of weaving the stories of their ancestors throughout the brand’s products.

It’s building a more intimate relationship with visitors, and appealing to those who want to feel more connected and contributing to the brands they choose to do business with.

10. Mailchimp

If you’ve never heard about Mailchimp, it’s a popular all-in-one marketing platform that had a humble start as an email marketing platform.

After it exploded, it expanded into a full-service marketing company.

Above the scroll of the homepage, Mailchimp shows its key customer value proposition of helping businesses scale and grow.

As you scroll down the homepage, you see four key benefits that the platform offers for growing businesses, with the option to click each one for more information.

The company goes a great job of addressing the needs of a growing company while clearly showing how it can help fulfill those needs.

Now that you’ve seen some juicy value proposition examples, let’s go over a few tips for writing a value proposition for your own brand.

Tips on How to Write a Value Proposition

Clarify the purpose and vision of your company.

If you want to create an effective value proposition, you need to identify who you are and why you’ve set up a company in the first place. The easiest way to do this is by documenting your:                                                                                            

• Mission statement, which explains why your business exists
• Vision, which includes the current and future objectives of your business
• Core values, which are the key principles that guide and direct your company and its culture

This simple measure will help you define your value proposition with better clarity, which is crucial to creating a more powerful identity for your business.

Research your audience

Your value proposition isn’t written to appeal to you. It’s written to appeal to the audience you want to do business with. It is, therefore, crucial to understand who your buyers are and what motivates them. This can be done with the help of interviews.  

You can interview your existing or prospective customers about:

• What companies they like
• What they look for in an industry-specific product or service
• What type of language resonates with them

This research will help guide the language and voice you’ll use to communicate with your audience .

Conduct a competitive analysis

Your interviews with existing or prospective customers may reveal other companies they’ve worked with before discovering your business. Analyze those businesses and figure out whether they’re in competition with your firm.

If the analysis reveals any potential competition, consider using your value proposition to communicate how and why you’re different from other similar businesses.

Examples of differentiators include higher quality, better service, and cheaper or faster shipping.

Jot down the benefits of using your solution

Consider what challenges or pain points your customers have and how you are addressing those problems. Think about both the practical and psychological benefits your solution provides.

For example, if you’re a property management firm, you aren’t just buying and selling real estate on behalf of your customers. Hopefully, you also offer specific advice that makes them feel their money is safe and well-invested.

Reiterating exactly how you can make people’s lives better and more fulfilling will help you guide your value proposition clearly. 

Whether you’re on track to becoming a million-dollar company or you’re the proud owner of a startup, taking these measures will help you put together a compelling value proposition every time around.    

A Strong Value Proposition for a Strong Business

In the wide world of business – especially ecommerce – you only have a sliver of time to prove that you’re worth a customer’s attention, let alone worth their hard-earned money.

When it’s clearly defined and clearly communicated, a customer value proposition can be the make-or-break between winning a customer over and falling into obscurity.

What makes you so great? Why are you the better choice over all the others? Customers need to know these answers ASAP, and a strong value proposition is one of the best ways to do so.

Whether you’re just starting a new business or looking to improve and strengthen your existing business, take some time to think critically about the value that you provide your customers and how you deliver that value.

Do you have any favorite value proposition examples that we didn’t discuss? Let us know in the comments below.

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How to write a value proposition for a business plan

Table of Contents

What is a value proposition?

Aspects that make up your value proposition, how to write a value proposition for a business plan (and everywhere else), value proposition canvas, customer profile, the steve blank formula, tips to create a value proposition that converts, take your business to new heights with countingup.

A value proposition is an articulate description of why customers should choose your business over others. In other words, your value proposition is the foundation of your competitive advantage. So it’s important to highlight it in your business plan to show potential investors and other stakeholders that you’re worth their time and money.

This guide will show you how to write a value proposition for a business plan. We’ll cover the following topics:

• Why you need to include a value proposition
• Tips to write a value proposition that converts

In a business plan, your value proposition comes after your executive summary and company description, meaning readers already have a general understanding of your business. If you’re unfamiliar with the term, a value proposition describes the value you promise to deliver to your ideal customer or client. 

Basically, you use your proposition to explain why someone would invest in your business and solution over anyone else. You already know why your business is special, but the key is to make it clear to anyone who reads your business plan. 

Your value proposition is only a simple statement rather than a long message, such as Grammarly ’s “Great writing, simplified” or HelloFresh ’s “Take the stress out of mealtime ”. Both these companies tell you how they help you in just a few words. 

But don’t let the simplicity keep you from coming up with a good value statement in the first place. The important thing is that your statement answers the following questions:

• What problem or pain point does your business solve?
• What are the benefits people get from your solution?
• Why should someone invest in you rather than your competitors? 
• What’s your advantage over other companies?

When developing your value proposition for your business plan, make sure you consider and include the following elements:

• Vision – this describes the ‘why’ of your business, meaning why you do what you do. Your vision shares your aspirations and how they help guide your efforts.
• Mission – this is where you explain what you do and how you do it. Describe the strategies you use to achieve your vision. 
• Values – here, you describe your values as a business and what characteristics clients thank you for (or will thank you for). 
• Unique selling point – your unique selling point (or USP) is the distinct advantage you have over your competitors that makes you stand out in the market. It can be your price, quality, design, selection, or even words. Or perhaps you offer a highly efficient service because you have a system like Countingup that speeds up many of your internal processes?
• Ideal client – you need to know who your ideal customer/client is to clearly communicate why they need your solution specifically. Try creating an ideal customer profile where you add all the relevant information you have about your ideal client. The more specific your profile, the easier it will be to explain your solution’s value to that group of people.

There are a few ways you can create a value proposition for your business. Here are some methods you can use.

This visual tool helps you position your solution around your customers’ needs. You can use the value proposition canvas to build your first statement or to enhance the one you already have. The canvas has two components: the customer profile and the value map. Let’s look at the parts that make up each component.

• Gains – the benefits your customer expects and needs that will increase the likelihood of attracting them to a value proposition.
• Pains – the negative experiences, emotions and risks customers want to escape.
• Customer jobs – the tasks customers try to perform, needs they try to satisfy, or problems they try to solve.
• Gain creators – how your solution helps create customer gains and satisfy their needs and expectations. 
• Pain relievers – how your solutions help eliminate customer pains.
• Products and services – the products and services you provide that create customer gains and relieves their pains. 

Explore each section from your customers’ perspective, imagining how each benefit increases pleasure or decreases pain for the person using your solution. 

For example, every self-employed person has financial management tasks they need to complete. By using Countingup , they can manage their finances from one simple app and minimise their time spent on these tasks. They’ll feel less stressed and more inspired to move their businesses forward. 

If you think the value proposition canvas is too complicated, you can try the simple formula by entrepreneur Steve Blank . He noticed many startup founders focus on features instead of benefits when attempting to create their value proposition. Instead of summarising how their company offers value to customers, leaders get stuck trying to choose which features to highlight. 

The Steve Blank formula gives you a way to transform your ideas into a simple sentence. Simply write down your ideas like this:

We help (X) do (Y) by doing (Z)

Let’s look at each component a little closer:

• We help X = Who is your ideal client, and what problem or pain point do they suffer with? 
• Do Y = Where does your ideal customer want to achieve by using a solution like yours?
• by doing Z = What value does your business deliver to the customer, and what makes you unique from your competitors?

When using this formula to come up with your value proposition, remember to go with your gut. Sometimes the first thing that comes to mind is the best. 

For example:

Countingup helps self-employed entrepreneurs manage their businesses efficiently by streamlining key financial processes. 

To wrap up, here are a few quick tips to help you create a value proposition that will inspire investors to keep reading your business plan and convert leads to customers. 

• Keep it short and concise – your statement needs to instantly tell people why they should buy from you. 
• Be precise – your value proposition should offer targeted solutions to specific needs.
• Focus on the customer – your goal is to prove how you solve customers’ problems, not your own. 
• Value takes many shapes – there are a bunch of ways you can deliver value to your customers, including money, convenience, time, and superior quality or service.

Countingup is the business current account and accounting software in one app. It automates time-consuming bookkeeping admin for thousands of self-employed people across the UK. 

Save yourself hours of accounting admin so you can focus on growing your business. 

Start your three-month free trial today. 

Apply now .

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Putting the customer first using the Value Proposition Canvas

It’s all around us, most companies have a singular focus on ‘innovation’ which has resulted in a flood of products and services competing for attention. Each claims superiority over its rivals, each iteration touting improvement upon the last. But most times there is a huge disparity between what customers truly desire and what companies offer. Understanding and meeting these multifaceted customer needs is no small feat.

The Value Proposition Canvas is a strategic tool that enables businesses to zero in on their customers' needs and design products or services that cater precisely to those requirements. Originating from the Business Model Canvas, it provides a detailed look into the customer’s world, ensuring that companies can align their offerings with customer expectations for a competitive edge in today’s market.

What is the Value Proposition Canvas?

At its core, the Value Proposition Canvas is a framework that helps businesses understand their customers better and create value propositions that solve real problems. It’s a visual chart that guides teams through the process of identifying customer pains, gains, and jobs-to-be-done, which are crucial for developing products that customers truly want.

• Ready to use
• Fully customizable template
• Get Started in seconds

The Two Sides of the Canvas

The canvas is divided into two main sections: the Customer Profile and the Value Map . The Customer Profile helps you delve into the customer’s mindset, identifying the tasks they are trying to accomplish ( Jobs-to-be-Done ), their frustrations (Pains), and what they hope to achieve (Gains). On the flip side, the Value Map allows you to outline how your product or service eases those pains and creates gains, thereby crafting a compelling value proposition.

By fostering empathy with customer needs and wants, the Value Proposition Canvas becomes an indispensable part of strategic business planning. It’s not just about what you sell; it’s about understanding the ‘why’ behind customer behaviors and tailoring your offerings to meet those needs.

For teams looking to apply this model, tools like Creately offer an advanced diagramming and whiteboarding platform that can enhance the collaborative process of filling out the Value Proposition Canvas. With Creately’s visual tools, teams can effortlessly create a shared understanding of the customer and visualize the value created, ensuring that everyone is aligned towards achieving product-market fit.

The Advantages of Implementing the Value Proposition Canvas

Embracing the value proposition canvas is a strategic move that can significantly enhance your business’s understanding of its customers. This powerful tool clarifies customer segments and delves deep into their specific needs, ensuring that your product or service is designed with precision to create maximum value. Here are some key advantages of implementing the value proposition canvas:

Clarifies Customer Segments: By defining customer profiles, the value proposition canvas helps in tailoring your offerings to meet the exact needs of different market segments, leading to more effective targeting and customer satisfaction.

Visualization of Value Creation: It enables a clear depiction of how your product or service benefits customers, aligning features with customer desires and expectations, which is crucial for strategic business planning .

Product-Market Fit: The canvas is instrumental in achieving a strong product-market fit, a cornerstone for any successful business. It ensures that your offerings not only meet market demands but also outshine competitors.

Strategic Business Planning: With its structured approach, the value proposition canvas supports focused planning, helping businesses to prioritize resources and efforts effectively.

Customer Involvement: It encourages active customer involvement in product development, fostering a collaborative environment where feedback is valued and acted upon, leading to products that truly resonate with the market.

By leveraging the value proposition canvas , businesses can ensure that their strategies are not just aligned with, but also driven by, customer needs and wants. This customer-centric approach is at the heart of product-market fit and is essential for businesses looking to establish a competitive edge in today’s dynamic market landscape.

Understanding the Structure of the Value Proposition Canvas

The Value Proposition Canvas is a strategic tool that enables businesses to ensure that the products or services they offer meet the needs and wants of their customers. It is divided into two main sections: the Customer Profile and the Value Map. Each section plays a crucial role in helping businesses align their offerings with customer expectations and market demand.

Customer Profile: Jobs, Pains, and Gains

The Customer Profile section is designed to give businesses a deep understanding of their customers. It focuses on three key areas:

• Jobs: This refers to the tasks customers are trying to accomplish, the problems they are trying to solve, and the needs they wish to satisfy. Understanding the customer journey and the customer segments is essential for identifying these jobs.
• Pains: These are the negative experiences, emotions, and risks that customers face when trying to accomplish their jobs. Identifying these pains helps businesses create solutions that alleviate customer frustrations.
• Gains: These are the outcomes and benefits that customers want. Recognizing these gains allows businesses to enhance their product features to better meet customer desires.

Value Map: Products and Services

The Value Map section outlines how a business’s products and services relieve pain and create gain for customers. It includes:

• Pain Relievers: These are the features or services that alleviate specific customer pains. They are critical in making a product or service compelling to the customer.
• Gain Creators: These are the features or services that generate expected or desired outcomes, enhancing customer satisfaction and providing added value.

Aligning the Customer Profile with the Value Map is where the magic happens. By matching pain relievers to customer pains and gain creators to customer gains, businesses can ensure that their offerings are not just functional but also highly desirable.

For example, Creately’s Value Chain Model templates can help businesses visualize and analyze their value creation process, ensuring that every step is aligned with customer needs.

Successful application of the Value Proposition Canvas involves a careful examination of these sections and a strategic approach to product development. By leveraging tools like Creately’s Value Stream Mapping Software , businesses can gain a comprehensive view of how their products flow from concept to customer, ensuring that every feature is designed with the customer in mind.

How to Use the Value Proposition Canvas

Mastering the Value Proposition Canvas is a strategic endeavor that can significantly enhance your business’s customer-centric approach. This powerful tool is not just about filling in the blanks; it’s about deeply understanding your customers and aligning your offerings to their needs. Let’s dive into a step-by-step guide on how to effectively utilize the canvas.

Filling Out the Canvas: A Step-by-Step Approach

• Start with the Customer Profile: Identify your customer segments and list out their jobs-to-be-done, pains, and gains. This will form the basis of your empathy towards customer needs.
• Map Out the Value Map: Outline how your products or services alleviate customer pains and enhance their gains. This is where you connect your solutions to customer problems.
• Align and Adjust: Look for the fit between the Customer Profile and the Value Map. Ensure that your value proposition is not just a list of features but a set of benefits that resonate with your customers.
• Gather Customer Feedback: Use tools like surveys, interviews, and Business Model Canvas Explained to validate your assumptions and refine your canvas.
• Iterate Relentlessly: The Value Proposition Canvas is not a one-time activity. Continuously update it as you learn more about your customers and as market conditions evolve.

Iterating and Refining Your Value Proposition

Refinement is key when it comes to the Value Proposition Canvas . It’s an iterative process that involves back-and-forth between what you offer and what your customers need. Utilize customer feedback to tweak and enhance your value proposition. Remember, the goal is to achieve a product-market fit that not only meets customer expectations but exceeds them.

Avoid common pitfalls such as becoming too attached to your initial ideas or ignoring market signals. Instead, stay agile and responsive, always ready to refine your value proposition to better serve your customers.

By integrating the Value Proposition Canvas into your strategic planning, you can ensure that every aspect of your product development is customer-focused. This not only leads to a stronger market position but also fosters a loyal customer base that sees the value in what you offer.

When to Utilize the Value Proposition Canvas

Understanding when to deploy the value proposition canvas is crucial for maximizing its impact on your business strategy. This versatile tool is not just for the initial stages of product development; it’s a dynamic instrument that can be woven into various phases of your business lifecycle.

• Product Development: At the inception of a product idea, the value proposition canvas helps you align your vision with customer needs, ensuring a strong foundation for your new product.
• Pivot or Rebranding: When considering a pivot or rebranding, the canvas serves as a guide to re-evaluate and adjust your value proposition to better meet market demands.
• Continuous Improvement: It’s a tool for ongoing refinement, helping you stay responsive to customer feedback and evolving market conditions.
• Market Changes: In the face of market shifts, the value proposition canvas allows you to reassess and stay ahead of the competition, ensuring your offerings remain relevant.
• Strategy Sessions: Incorporating the canvas into regular business reviews and strategy sessions fosters a culture of continuous alignment with customer values and market trends.

By integrating the value proposition canvas into these critical stages, you not only create a customer-centric approach but also leverage a strategic asset for business growth. Creately’s Business Model Canvas Template can be instrumental in this process, providing a visual collaboration platform that enhances team efficiency and streamlines work processes.

Expert Tips for Maximizing the Value Proposition Canvas

Mastering the value proposition canvas is not just about understanding its structure; it’s about leveraging it to its full potential. Here are expert tips to ensure you’re maximizing the benefits of this powerful tool:

• Collaborative Team Use: Encourage team members to contribute their unique insights by using a visual collaboration tool for teams like Creately. This fosters a diverse perspective on customer needs and value creation.
• Effective Communication: Clearly articulate your value proposition both internally and externally. Use visuals to communicate complex ideas simply and effectively, ensuring alignment across all departments.
• Targeted Strategies: Utilize the canvas to inform your marketing and sales strategies, ensuring that they are closely aligned with the customer’s jobs-to-be-done, pains, and gains.
• Regular Updates: The market is ever-changing, and so are customer needs. Revisit and update your value proposition canvas regularly to stay relevant and responsive.
• Customer Feedback Loops: Integrate customer feedback loops into your canvas. This continuous improvement process ensures that your value proposition remains customer-centric.

Identifying Customer Advantage with the Value Proposition Canvas

Understanding your customers' needs and desires is the cornerstone of a successful business strategy. The Value Proposition Canvas is a powerful tool that helps businesses to create a structured approach to analyzing customer pains and gains for a competitive advantage. By mapping customer insights to your value proposition, you can ensure that your offerings resonate deeply with your target audience.

Leveraging Creately to Craft Your Value Proposition Canvas

When it comes to mastering the art of customer-centricity, the value proposition canvas is an indispensable tool. But to truly harness its power, you need a platform that facilitates seamless collaboration and deep customer understanding.

• Visual Canvas Mapping Tools: Creately’s intuitive interface allows you to map out strong value propositions with your team, ensuring that every voice is heard and every customer insight is captured. With features like an infinite canvas and AI-powered visual intelligence, you can visualize the value created for customers in a way that’s both comprehensive and easy to understand.
• In-Depth Research and Customer-First Experiences: Conducting thorough research is crucial for understanding your customers. Creately’s platform supports this with multiple visual frameworks and templates, such as the USP Analysis Template , which help you gain an in-depth understanding of your customer segments.
• Collaborative Shared Visual Canvas: The shared visual canvas feature of Creately allows for real-time collaboration, making it easier to align your team’s efforts and iterate on your value proposition canvas. This fosters a strong customer involvement, which is key to creating products that truly resonate with your audience.

By leveraging Creately’s advanced diagramming and whiteboarding, you can create a value proposition canvas that not only identifies customer jobs to be done but also aligns them with your product’s features and benefits. This ensures a focused planning approach and a competitive edge in achieving product-market fit. With Creately, you’re not just crafting a value proposition canvas; you’re building a bridge between your product and the customers it serves.

Join over thousands of organizations that use Creately to brainstorm, plan, analyze, and execute their projects successfully.

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Chiraag George is a communication specialist here at Creately. He is a marketing junkie that is fascinated by how brands occupy consumer mind space. A lover of all things tech, he writes a lot about the intersection of technology, branding and culture at large.

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12 value proposition templates, plus real-world examples to help you craft your own

My nephew has recently hit the delightful developmental stage where his response to anything you say is "Why?" It's like being on a game show where every answer you give is met with another question, and the grand prize is needing to lie down.

"Why is this rock round?" he recently asked, eyes wide with genuine curiosity.

"Because...erosion?" I ventured. (There's a reason why I'm a marketer and not a geologist.)

"Why erosion?"

And so began a philosophical ping-pong match that left me questioning the very fabric of reality and my nephew with a newfound appreciation for the Grand Canyon. This endless loop of curiosity is how businesses should approach using a value proposition template. Like a four-year-old's relentless questioning, businesses should keep asking "Why?" to uncover the real reasons people buy their products.

In this post, I'll break down the ins and outs of value propositions and show you real-world examples of companies that are nailing it. You'll walk away with a clear understanding of value props and how to craft the perfect one for your unique business.

Value proposition definition

A value proposition is a simple message that describes the benefit your product or service offers customers. It's a promise of value that helps convince people why they should choose you over your competitors. In short, your value prop is your secret sauce—it's what makes your product special and attractive to customers.

Your value proposition is what links your business plan to your target market segment . It's often the foundation for all marketing efforts because it helps ensure you're building the right product for the right customers.

Similar to my nephew's interrogations, it's important to understand the "why" behind your product. If nothing in your value proposition tells you why a customer should choose you, then you haven't scratched the surface enough into the value you offer.

A compelling value proposition will tell you:

Who the target audience is

Their biggest need or challenge

The benefit or value offered to them

What makes the offering different or better than competitors

You're probably familiar with a few other marketing terms that are commonly conflated with value propositions, so let's go over some of those differences.

Value proposition vs. positioning statement

Unlike a value proposition, which is customer-focused, a positioning statement outlines your brand's position in the market and how your product is different from alternatives.

A positioning statement is an internal tool used to guide your marketing and business decisions. It's broader in scope than a value proposition and is often written in this format:

For [target audience] who [target audience need], our [product or service name] is a [product or service category] that [statement of differentiating benefit]. Unlike [competitors], our [product or service name] [statement of primary differentiation].

Value proposition vs. mission statement

While a value proposition tells people why they should care about your product, a mission statement defines your company's values and primary goals. It's more about you than the customer.

A mission statement outlines your company's purpose and vision. It captures your fundamental reason for being and guides strategic decision-making. It should drive your value prop, not the other way around.

Value proposition vs. USP

A unique selling proposition (USP) is what distinguishes you from competitors. It highlights what's unique about your product or service to give you a competitive edge. Though related, it's not exactly the same as a value proposition. It's like what the nice lady at Sephora explained to me about eyebrows—they're sisters, not twins.

USP examples include:

Trader Joe's sells high-quality, grid-worthy groceries at affordable prices.

Peloton offers studio-quality spin classes from home.

UGG boots allow you to walk comfortably without socks (a crime).

A USP is about a unique feature, while a value proposition is about the overall value to customers. The USP sets your product apart in the market, and the value proposition shows the benefits of using it. It's the difference between "Here's why we're awesome" and "Here's why you'll love that we're awesome."

12 value proposition templates

I've compiled some value proposition templates, inspired by widely-used formulas, to help you get started. Included are common use cases for each example, but these frameworks are adaptable enough for any industry.

1. Classic benefit-oriented

Though simplistic, this value proposition statement template works for a reason. It gives your target customers an easy-to-digest reason why they need your product or service in their lives. Just remember, undersell and overdeliver for the best results. Savvy customers can smell empty promises from a mile away.

"For [target customer] who [need/want], our [product/service] is a [product category] that [statement of benefit]."

Use cases: Consumer electronics, automotive, household appliances, and other industries that benefit from clearly articulating the specific advantages of their products

2. Addressing a pain point

Coming up with a product that solves a problem is the hard part. Creating a value proposition for it should be like shooting fish in a barrel. Except shooting at a barrel full of captive fish seems overcomplicated and messy. Let's just say creating your value prop should be easier than picking up a fish flopping on the ground after you dumped it out of a barrel.

Addressing a pain point in your value prop helps potential customers quickly understand how your product can improve their lives. Be specific about who benefits and what problem is solved. If you can articulate your audience's aggravation and demonstrate how to assuage it, you'll have customers lining up to hand over their cash. 

"We help [target audience] [solve a specific pain point] by [product feature or benefit]."

Use cases: Health care, IT services, home improvement, and other industries that often deal with specific issues or challenges that their products or services are designed to address

3. Outcome-based

An outcome-based value proposition framework focuses on the end result your customers desire. It's all about helping them achieve their sought-after objectives through your one-of-a-kind method.

To craft an effective outcome-based value proposition:

Identify your target audience's biggest challenge.

Determine the end result they want to achieve.

Figure out how your product or service enables them to achieve that outcome.

Combine these elements into a concise statement following this formula:

"We help [target audience] achieve [desired outcome] through our [unique approach]."

Use cases: Education, professional training, fitness, and other industries that focus on helping the target audience achieve specific results

4. Emotional appeal

With an emotional appeal value proposition, you're selling an experience and a feeling, not a specific feature or benefit. This type of value proposition template aims to motivate customers in a deeply personal way. But use sparingly, as constant emotional manipulation can seem, well, manipulative.

"Experience [emotive benefit] with our [product/service], designed for [target audience]."

Use cases: Beauty and wellness, travel and hospitality, entertainment, and other industries that thrive on creating emotional connections and experiences

5. Convenience-driven

The convenience-driven value proposition taps into the desire for simplicity and efficiency. Consumers are drawn to products or services that reduce cognitive load and simplify their lives. This strategy is like me trying to fix something—I simplify the task by calling a professional . 

"We make [task or goal] easier and more efficient for [target audience] through [specific feature or benefit]."

Use cases: Fast-moving consumer goods, eCommerce, on-demand services, and other industries that thrive on providing quick and easy solutions to daily needs

6. Exclusivity appeal

We all want what we can't have, right? This value prop template plays on the psychological principles of scarcity and social status. Exclusivity triggers a sense of belonging to an elite group, which can be a powerful motivator. It also creates a perception of higher value, making the product or service more desirable.

"Join a select group of [target audience] who enjoy [exclusive feature or benefit] with our [product/service]."

Use cases: Luxury goods, high-end fashion, premium services, and other industries with consumers seeking unique, high-status products

7. Expert endorsement

In a world where everyone's an armchair expert, this value proposition brings in the big guns to build trust and confidence in a product or service.

When an expert or industry leader recommends your product, it acts as a stamp of approval for your target customers. It's social proof that your solution is the real deal, giving you a competitive edge that's hard to beat. 

As a value proposition, expert endorsements hold a lot of weight with your target customers—whether it's a top chef who swears by a kitchen knife, a fitness guru raving about a protein shake, or your aunt's '90s crush slinging a butter substitute .

"[Expert or authority in field] recommends our [product/service] for [specific benefit or solution]."

Use cases: Health care, fitness, finance, technology, and other industries where expert validation can significantly influence purchasing decisions

8. Testimonial-based

A testimonial-based value proposition showcases the experiences of existing users to build credibility and humanize your brand. It's peer pressure put to good use.

The inclusion of a specific number of users adds to its authenticity, making it especially powerful in markets where personal experiences and customer testimonials are highly valued.

"See why [number] [target audience] trust our [product/service] for [specific problem or goal]."

Use cases: Travel and hospitality, home services, personal care, and other industries that impact personal or professional life considerably

9. Aspirational message

This proposition framework aims to inspire and motivate your target audience by aligning your product or service with their self-improvement goals. It's like a motivational poster but with fewer dangling kittens.

An aspirational message value prop works by tapping into the audience's desire to be a better version of themselves, or at least look like it on Instagram.

"Elevate your [aspect of life or business] to the next level with our [product/service]."

Use cases: Lifestyle, personal development, luxury brands, and other industries that appeal to customers' desires for self-improvement and status

10. Cost-efficiency emphasis

Focused on practicality, this value proposition appeals to your audience's rational side by highlighting the economic benefits of a product or service. It appeals to budget-conscious consumers and those looking to maximize value.

A cost-efficiency framework emphasizes how much time, money, or resources a customer can save by using your product or service. This strategy is widely used in competitive markets where price and value are significant deciding factors.

The key is to quantify potential savings to grab attention. A strong cost-efficiency value proposition convinces target customers that your offering is a smart investment by using a tangible value.

"Save [time/money/resources] and achieve [solution/goal] with our [product/service]."

Use cases: Retail, consumer electronics, utility services, and other industries where consumers are particularly price-sensitive

11. Innovation highlight

As someone who suffers from shiny object syndrome (I've been glued to some version of an iPhone since they dropped in 2007), I'm a total sucker for the innovation highlight value proposition.

This strategy is all about showcasing those cool, innovative features that make life easier, better, or just way more fun (like no longer having to use T9 to text). It appeals to the consumer's curiosity and desire to be part of something new and revolutionary. It can create excitement and anticipation, which are strong motivators for those early adopters and tech enthusiasts who camp outside stores for the latest gadget.

"We feature [technology/innovation] that [solution or benefit] for [target audience]."

Use cases: Technology, automotive, renewable energy, pharmaceuticals, and other industries where innovation and cutting-edge developments are key differentiators

12. Risk reduction

By focusing on reducing potential risks, this value proposition appeals to the type of people who only buy non-habit-forming multivitamins and other risk-averse consumers. This approach reassures the audience by highlighting safety, reliability, and security features, thereby reducing the perceived risk associated with the purchase or use of the product or service.

"With our [product/service], reduce the risk of [specific problem or issue] in [specific scenario]."

Use cases: Finance, health care, insurance, cybersecurity, legal services, and other industries where the cost of error is high

10 examples of value propositions

This list peels back the curtain on the value propositions of well-known companies. It's worth mentioning, however, that businesses usually keep their value proposition close to their chest. 

Some of these examples are pieced together from what's publicly available and might not be the word-for-word gospel straight from the company's playbook. But it's a solid snapshot of the value these companies offer to their target customers.

Slack: "Slack is a new way to communicate with your team. It's faster, better organized, and more secure than email."

Domino's Pizza: "Fresh, hot pizza delivered to your door in 30 minutes or less—or it's free."

Zoom: "Connect with anyone, anywhere, on any device with Zoom's reliable video conferencing platform."

Dropbox: "Safely store and share your files from multiple devices with Dropbox, the secure cloud storage solution."

Zappos: "The world's largest shoe store delivered to your door with free shipping and returns."

Tinder: "With 55 billion matches to date, Tinder is the world's most popular dating app, making it the place to meet new people."

Airtable: "Airtable is a low-code platform to build next-gen apps. Move beyond rigid tools, operationalize your critical data, and reimagine workflows with AI."

M&M's: "The milk chocolate melts in your mouth, not in your hand."

Disney theme parks: "Creating magical experiences for guests of all ages through immersive storytelling and high-quality execution."

Zapier: "Workflow automation for everyone. Zapier automates your work across 6,000+ app integrations, so you can focus on what matters."

These companies have crafted value propositions that pack a punch in their own way, but they all effectively summarize why their offering is valuable. They provide a clear reason for target audiences to choose them over the competition, paving the way for brand loyalty and success.

Value proposition canvas

Popularized by Strategyzer , a value proposition canvas is a visual framework that helps you create a strong value proposition for your product or service. It's a simple way to make sure you're selling what your customers actually want to buy. Let's break down its components:

Customer segment: This part of the canvas helps you understand what your customers are trying to do and their pains and gains :

Customer jobs: What's your customer trying to get done? Are they trying to impress their boss, save time, or just not cry after a haircut? This covers everything from practical stuff to emotional needs.

Pains: What makes them want to pull their hair out while trying to perform these jobs? Is it slow internet, bad coffee, or existential dread?

Gains: What outcomes and benefits does the customer want to achieve? Are they looking for convenience, bragging rights, or just a good night's sleep?

Value map: This section is where you match what you offer to what your customer needs by relieving pain or creating gains:

Products and services: What are you offering? These are the products and services that help your customers complete jobs.

Pain relievers: How does your product make the lambs stop screaming? This is where you list how your offerings alleviate customer pains.

Gain creators: How do your products improve the customer's life? Maybe you're making them faster, smarter, or better-looking.

By using a value proposition canvas, you can map out the fit between what you offer and what customers want. Spending the time to align these elements will help set your business up for success. You'll have a product that solves real problems in a way that's truly valuable. 

How to write a value proposition

Crafting an irresistible value proposition is key to standing out from the competition and attracting your ideal customers. If you can't articulate what makes you special, you might as well start rehearsing your pitch for when you have to beg friends and family for their pity purchases.

Using the value proposition canvas above and following the four steps below, you'll be able to hammer out your value prop in no time.

Step 1: Identify your target customers

To write a stellar value proposition, you first need to figure out who you actually want to buy from you. Get specific about the types of people or businesses that would benefit most from your product or service. Don't be afraid to exclude people. If you try to please everyone, you'll end up pleasing no one.

Ask yourself questions like:

Who needs what you're selling?

What keeps them up at night?

How can you make their lives easier or better?

What do they value?

How do you stack up against the competition?

Once you've pinpointed your target audience, dig deep into their specific needs and desires. You can do this with market research , focus groups, or some light LinkedIn stalking. Learn what they care about most and what will motivate them to buy from you.

The better you understand your target customers, the easier it will be to create a value prop that speaks directly to them.

Step 2: Define your benefits

A value proposition tells your customers why they should buy from you. To craft an effective one, you need to define your benefits.

Think of your value prop like the old "sell me this pen" challenge. Instead of droning on about features like ink viscosity or ergonomic grip (yawn), you'd emphasize the pen's benefits, like how owning it will make your customer feel like the kind of person who always knows where the nearest post office is. It's about shifting the spotlight from the pen's specs to the adventures it can scribble into existence.

That said, in order to know your benefits, you have to know your features. List out all your product or service's features. Then, write out one or more benefits next to each feature. From there, you should be able to find and prioritize the most relevant benefits to your target customer.

Step 3: Differentiate yourself

Once you've defined your benefits, you need to give customers a reason to choose you over the other guys. It's not necessarily about being better—it's about being different in a way your target audience values.

What makes you unique in your industry or market? Vague claims like "high-quality products at reasonable prices" won't cut it. No one is hoping to buy low-quality garbage for an exorbitant price. That's like going to a restaurant where they brag about their food not poisoning you.

Need help coming up with a key differentiator? Start by going over the features and benefits you documented in the previous step. Note the ones that are unique to your company.

Additionally, one of these common competitive advantages may apply:

Longer-lasting products

Exceptional customer service

Convenience

Special ingredient or attribute

Best-selling product

Highest-rated

Environmentally friendly

Hassle-free

Customizable product

Same-day service

Step 4: Communicate your value

The final step is to put it all together in a simple statement that taps into your customers' wants and highlights your competitive advantage.

Speak their language: Because your value prop is the foundation for all your marketing, you'll want to communicate in a way that resonates with your audience. This might involve using specific words, tone, or style that appeals to them. Echo those words and phrases in your messaging.

Keep it snappy: Aim for two to three sentences, max.

Communicate your benefit: I know I sound like a broken record, but this part is just that important. Focus on the outcomes and advantages for customers, not just what you do or offer.

Be bold yet believable: This isn't the time for modesty, but don't overpromise with exaggerated benefits. Stick to plausible perks to avoid disappointed customers calling your bluff.

Test and refine: A/B test your value proposition and gather feedback. The best value propositions continually evolve based on feedback and market trends.

Crafting your value proposition may be one of the most important things you do for your business. It's about connecting with your target audience, understanding their desires, and maybe convincing them that they need your hand-knitted toilet seat covers more than they need to pay rent this month.

Deliver on your value proposition with automation

Once you've nailed down your value proposition, you can leverage Zapier to automate and streamline many of the manual tasks related to marketing and customer engagement, like posting on social media, sending out email newsletters, and even managing customer inquiries. This frees up more time for you to focus on making your products and services even more awesome. Learn more about how to automate your marketing workflows .

Related reading:

Business objectives: How to set them

An exhaustive guide to customer acquisition strategy

Selling the invisible: How to sell your services

Business startup checklist: How to launch a startup step by step

6 obstacles every early-stage business owner should expect

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Allisa Boulette

Based in New England, Allisa is a content marketer and small business owner who hopes to make the internet a more interesting place than she found it. When she’s not working, you can find her lying very still not doing anything.

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How to Write a Business Plan "Concept and Value Proposition" Section

A key component of your business plan is your business concept and value proposition, which is the clear articulation of why customers should choose your solution over that of your competitors.

This section of the plan for developing your business concept and positioning your value proposition follows the executive summary and company history , so readers should already have a general idea of what your company does, who it's for, and what your long-term goals are for the business.

The business concept comprises your vision of the company, explaining the value your product or service will bring to the customer, why you are especially qualified to offer it, as well describing your offering's uniqueness and growth potential  within your industry.

This section enables you, as well as interested parties and potential investors, to research and analyze the concept for feasibility, both from a market and financial perspective. Keep in mind that everything in your business plan must relate back to the value and benefits your product or service provides to your target customers.

The Feasibility Test

Think of a feasibility test as a reality check for your business idea. The goal of conducting a feasibility test is to prove to yourself and your team or investors the probability of your product or service being successful within your industry.

A feasibility test should be as low-cost as possible and should revolve around creating a Minimum Viable Product (MVP) or simple proof of concept, which communicates the most simple, basic value propositions of your future product or service.

According to Entrepreneurship For Dummies, by Kathleen Allen, a feasibility test weighs the validity of your business concept by examining four main points:

• The product your firm will offer.
• The customer you will target.
• Your value proposition.
• How you will get the product to its intended users.

By this stage in your business plan, you should have a firm grasp on what product or service you intend to offer, as well as who you believe will be your primary customer. The final item requires weighing various distribution channels, but, again, should be answerable with a little legwork.

The Value Proposition

Your value proposition is what makes customers choose you instead of the competition. It's part marketing, part operations, and part strategy; your value proposition is the foundation of your competitive advantage.

On a subconscious level, customers will compare the value proposition of your company against those of your competitors when deciding where to take their business. With that in mind, here are a few things to remember when writing your value proposition:

• Keep it short and uncluttered. Your value proposition explains why customers should buy from you. If you can't sum it up in 10 words or less, chances are you won't be able to execute it, either.
• Be precise. Your customers have specific needs; your value proposition should offer targeted solutions
• It is about your customer, not you. Your value proposition should discuss only what matters to your customers and the value you can bring to them.
• Value comes in numerous forms. Money, time, convenience and superior service are a few of the ways you can help deliver value to your customers.

Distribution Strategy

After you've validated your business idea with a small group of paying customers, the last part of the business concept is to determine how you will deliver your product to your customers at scale. Taking a manual approach to reaching your first customers is necessary, but won't work as you grow your business. Are you going to sell directly to consumers? Through strategic partnerships? Retail distributors?

Consider these several factors when planning the distribution strategy for your business:

• Will you set up a brick-and-mortar shop or office, sell online, or both?
• What unique obstacles exist for your company in these two different channels?
• If your company sells a product, will you have the space to keep enough inventory on hand, or will customers have to agree to waiting periods?
• Can you strike exclusive deals with any particular distributor or retailer? Do your competitors have any such deals that hinder your operation?

Vision is important if your business is going to grow. The more focus your business concept has in terms of clear solutions for a like-minded niche group of people, the greater the likelihood that you'll attract the best investors and customers.

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How to write an inspiring value proposition (with template and examples)

A value proposition (VP) explains how customers can benefit from purchasing your product. In this declarative statement, you’ll convince your target audience why they should buy your product instead of your competitors’. Read on to learn how to write an inspiring and effective VP.

Every time someone buys your product or service, they’re making a choice. They’re choosing you over your competitors because they’ve decided your product is more valuable. But when two companies offer similar items with similar features, how do customers reach that decision?

That’s where a value proposition comes in. An effective value proposition convinces your target audience why you’re better than the competition. This statement is a way for you to differentiate yourself from others in your market and explain what customers will gain by purchasing from you. In this article, we walk you through how to craft your value proposition to set yourself apart.

What is a value proposition?

A value proposition (VP) convinces customers to buy your product or service by highlighting your product’s value and unique features. A value proposition goes by various other names, including:

Value statement 

Value positioning

Brand proposition

​​Unique selling proposition (USP)

Unique value proposition (UVP)

Regardless of the term you use, the meaning is the same. Your goal should be to develop a succinct statement—often paired with a visual element—that declares how your services are notable and unique. 

A company can also have multiple value propositions for different campaigns or to show different areas of value. 

The four main types of value propositions include:

Price value: You’re highlighting why your product or service is the most cost efficient option.

Unique product value: You’re highlighting the unique features of your product or service.

Customer ease or convenience: You're highlighting how your product makes your customers’ lives easier.

Customer results: You’re highlighting how your product or service gets customers results.

Value proposition vs. mission statement

You may show your mission statement to others outside of the company, but it’s meant to be your internal “why” statement. The value proposition should be your “why” statement for customers, explaining why they should buy your product.

4 questions of a value proposition

There are a variety of strategies to write your value prop, but all of them harken back to four key questions. If you can answer these questions about your company and the product or service you offer, then you have all the tools you need to write an effective value proposition.

What do you offer? Explain what your product or service is.

Who is your audience? Identify your target audience .

What value do you deliver? Outline the need you’re meeting or the opportunity you’re providing your audience.

What makes you different? Explain the features and benefits that set your product or service apart.

Other tips to consider when crafting your value propositions include:

Be direct with your audience. Clarity is key.

Use your value prop to explain clear results the customer can expect when purchasing your product.

Avoid sales jargon and buzzwords.

Keep it brief.

How to create a value proposition

The tools below will help you dive deeper into the customer experience and get to know your product or service better. Not only will this help you when crafting your value proposition, but it’ll help you in various aspects of your go-to-market strategy .

1. Map your value proposition canvas

The value proposition canvas is a tool where you map out your customer profile and product side by side in order to visualize how they connect. Your potential customers will have needs, expectations, and pain points. Your product should seek to meet these areas.

Jobs to do: Customers use products and services because they have physical, social, and emotional tasks to complete. 

Gains or expectations: When searching for a product or service, a customer will have expectations for the product, including things like price point, ease of use, and design quality.

Pain points: Customers won’t buy products if it has certain pain points, including things like high price point, bad customer service, if they are too complex, or of subpar quality. 

Products or services: Your product or service should help the customer accomplish a specific task.

Gain creators: Your product should seek to create gains for the customer, such as providing the highest quality product for the lowest price.

Pain relievers: Your product should seek to relieve pains, be easy to use, and reliable.

The value proposition canvas is the best way to see how you’re meeting your customer’s needs with your product. This tool is also useful during product creation because you can map out the customer journey first, then use that information to align your product or service to their needs and expectations. 

2. Go deeper with your questions

After you’ve mapped out your value proposition canvas, you’ll have a solid idea of how your product features meet the needs of your customer. But because you can never do too much analysis, here are more questions from Harvard Business School that you can use as you brainstorm possible statements with your team:

Which customers are you going to serve?

Which needs are you going to meet?

What relative price will provide acceptable value and profitability for the customer? 

The unique question here is analyzing the price point of your product. HBS explains that price can be an important factor for your value proposition, depending on your target audience and what needs you’re trying to meet. While companies like Apple place more emphasis on product quality and service, other companies like Walmart rely on low prices to bring in business. 

3. Use a value proposition template

Many business leaders have created formulas to make value propositioning easier. Once you know your customer and your product value, you can input your information into these formulas and the result will be a succinct and powerful statement to your audience. 

Here are a few options from Steve Blank , founder of the Lean startup movement; Geoff Moore , consultant and organizational theorist; and Guy Kawasaki , author and Apple alumni.

Steve Blank’s formula: We help [target customers]do [customer need] by offering [product features and benefits].

Cooper & Vlaskovits’ formula: [customer] with [customer problem]. Our [product] offers [customer solution].

Geoff Moore’s formula: For [your target customer] who [need or opportunity] our [product or service] in [product category] that [product benefit].

An SEO company may use the slogan, “We help others find you.” But when using the above formulas, their value proposition could read something like this: 

Example 1: “We help businesses get seen on the SERPs by offering a user-friendly content optimization tool. 

Example 2: “Get seen with a content companion that makes SEO simple.”

Example 3: “For businesses who struggle to understand Google algorithms, our user-friendly content optimization tool makes SEO simple so you can rank in the SERPs.”

Use the free value proposition template below for each of these formulas.

Value proposition examples

Here are some examples of companies and their value propositions. Many companies use a version of their value proposition in their tagline, but if you go to their website’s homepage, you’ll learn even more about the value they offer. 

Another strategic place for companies to display their value proposition is in the sub-headline on their main landing page. After a short and punchy headline, a sub-headline can be a great place to elaborate on what problem you hope to solve for your customers. Look below. 

1. Asana: “Work works better with Asana.”

Here at Asana , our slogan is, “Work works better with Asana.” The goal of our work management software is to make it easier for companies to perform their work processes. 

One version of our value proposition is, “Asana helps cross-functional teams overcome their organizational growing pains and ensures that goals, processes, and collaboration can continue to scale.” One thing to note is that you don’t have to stick to a single value proposition as long as you stay consistent with your messaging. 

2. Pinterest: “Welcome to visual discovery.”

If you check out Pinterest’s About page, you’ll find a value prop that says, “Welcome to visual discovery.” Their sub-headline expands on the message by tying in the idea-based function of their discovery platform. It says, “When it comes to a great idea, you know it when you see it.”

On the Pinterest homepage, they use visual elements to give you a teaser of how the platform looks once you sign up. It prompts you to scroll down as images appear, tempting you to dive in. 

3. Spotify: “Listening is everything.”

Spotify keeps their message simple with three large words displayed across their homepage: ”Listening is everything.” In the sub-headline, they elaborate on what their platform provides by saying, “Millions of songs and podcasts. No credit card needed.” 

You can find different versions of their value proposition on other parts of their website. For example, on their Contact page, it says, “Soundtrack your life with Spotify. Subscribe or listen for free.”

Put plans into action with Asana

You must set yourself apart if you want to build a strong customer base. When creating your value proposition, remember to point out the needs of your audience, show what you have to offer, and explain how you’re different.

Use work management software , like Asana, to plan, organize, and execute your value proposition. Incorporate your VP into a larger digital marketing strategy so your brand will have room to grow.

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How to Create a Unique Value Proposition + Examples

Lisa Furgison

10 min. read

Updated May 10, 2024

If you’re starting your own business you’re probably already thinking about what sets you apart from competitors in your space. Coming up with your unique value proposition (UVP) or unique selling proposition (USP) creates a strong foundation for all your marketing messages and strategies for engaging new customers.

This article is a handy guide that will define what a UVP is, and help you write your own.

• What is a unique value proposition (UVP)?

Your unique value proposition (UVP) is the promised value customers can expect from your business. It explains what separates your business from your competitors, how your solution solves your customers’ problems, the specific benefits, and why your target customers should choose you.

In a nutshell, your UVP covers: 

• How your product or service works
• What makes it valuable
• Why it’s better than the rest

Your UVP should be front and center on your website, and it should be completely free of jargon—it’s like a very short elevator pitch that someone who has never heard of your company before would understand immediately.

• What is the purpose of a value proposition?

Your value proposition is designed to introduce your company’s brand to potential customers. It defines what you stand for, what you do, how you operate, and why you should be chosen over the competition. 

Every competitor in your field is vying for attention. From marketing plans to advertisements, consumers hear a lot of noise. To cut through this clutter and turn your target audience into loyal customers, you need a value proposition that mere mortals can understand easily—and remember. You want your customers to hear your name and think, “oh, that’s the company that does (your unique solution).”

• How do you write a unique value proposition?

Finding a value proposition takes some time and legwork. A real UVP is more than a clever tagline. For it to be meaningful, you have to know your customer and your business. Plus, you have to understand how your product or service fits into our consumer-driven world.

So while your UVP is probably always in the back of your mind, don’t write it based on what you think is true about your solution and your customers. Do some research and testing so that you are sure.

And for that matter, keep testing. Once you’ve come up with your UVP and put it all over your marketing materials and website’s landing pages, it might be tempting to set it and forget it. Keep testing it over time—the more your business grows, the more you’ll know about your customer’s pain points and how your solution helps them. Here are the five steps needed to develop a value proposition.

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1. Define your target market

First, you need to figure out who your customers are. Who will buy (or is buying) your product or service? A lot of first-time business owners want everyone to be a customer; this is a rookie mistake. Marketing to everyone is the opposite of marketing to your target market. If you try to appeal to everyone, your business and product will get lost in the noise. An example of this kind of mistake is a shoe company trying to market to everyone with feet! You’ll waste a lot of time and money that way.

Instead, hone in on exactly who your audience is. Do some market research—both based on your existing customers (if you have them) and other populations you think might be good potential customers. You want to know and understand their pain points—the problems they have that you might be able to solve.

But you’re also interested in their demographic information, income statistics, and family makeup. How old is your target audience ? Are they male or female? What kind of income does your target audience have? Get specific. What does your target audience do on the weekend? What kind of music do they listen to?

You might think these last questions are a bit far-fetched, but you want to create a buyer or user persona of your target audience. A buyer or user persona is a fictional representation of your ideal customer—but it’s a very useful tool to help you hone your messaging and who you consider to be a part of your target market.

You can’t create a unique value proposition alone in your basement, either. You have to test it. Run it by a small group of customers, or people you think are in your target market to ensure it resonates with customers you’re trying to reach.

2. Explain why customers should buy from you instead of a competitor

To separate yourself from your competitors, you have to know who they are and what they stand for. Research your competitors inside and out , from their mission statement to the types of employees they have. You can only set yourself apart if you know what’s already been done.

Putting together a competitive matrix can be a helpful way to visualize how you stack up against them. Don’t make the mistake of assuming you don’t have any competition. Every business has competition , even if you’re in a brand new industry. When you’re writing your UVP, see if you can articulate why your customers should buy from you instead of your competitors in ten words or less. If you can’t, keep revising.

3. Define the pain point your product or service solves

Write down how your business or product solves a problem or alleviates a pain point for customers. Can your product do something that other products can’t? Does it save time? Is it more affordable than other products? What about your product or service makes it a must-have for customers—why can’t they live without it?

Take that list and cross off any need pain point that your competitors can claim to address too. Your competitive matrix might be helpful here.

This exercise is meant to help you find areas where your business is different than others. Simply having the best product or the best customer service in the market isn’t enough differentiation.

Remember, every business thinks they have the best product. Take some time to figure out how your product meets the needs of your target audience in a way that others can’t.

4. Connect to your company mission and what you stand for

What does your business stand for? It’s a big question, one that takes some time to figure out. Once you have a solid and clear answer, see if your mission overlaps or coincides with the list of things that sets your business apart. Now you’re starting to hone in on your value proposition.

Once you’ve done your digging, write down a few different possible value propositions that fit your business. Again, this isn’t going to be something you whip up in 20 minutes. Write a few down, stew on them for a bit, and refine them. Ask yourself if someone could read your UVP and think it’s talking about another company. If the answer is yes, you have a selling or value proposition, but it’s not unique yet.

Rework it until you have one succinct sentence that makes you stand out from your competitors. What do you want your customers to remember about you when they hear your brand or product name?

5. Craft a single message

Once you’ve defined what you will cover in your value proposition, you need to land on a single core message. Not every pain point or benefit needs to be listed here. You’ve done the research to ensure you are landing on the right message for your audience, the last thing you want to do is overcomplicate communications

Focus on communicating one key value that connects to your customer’s pain point. The goal is to hook their interest so that they want to explore what else you have to offer. If they take that first step, then look for opportunities to elaborate on the additional value you provide.

Additionally, just because you’ve honed in on a core value proposition, doesn’t mean that it can’t change. You may need to make adjustments for sub-sections of your audience, change out keywords for different platforms, and even fully restructure your UVP if it doesn’t resonate. 

The key here is to not just write up your UVP and walk away. Look for opportunities to test it directly with your target audience either through interviews, surveys, or even through live testing. 

• 4 examples of great value propositions

One of the best ways to learn is by example, so let’s take a look at a few businesses that have created unmistakably unique selling propositions.

The Mast Brothers Chocolate

This duo of bearded, lanky brothers creates chocolate bars by hand . Their dedication to their craft alone is unique, but the brothers have infused their love of old-time traditions into their business.

When they need to purchase more cocoa beans, they charter a wooden sailboat to stay true to their pioneer-like roots. Now that’s a unique position you can market.

Dollar Shave Club

This online business sells and ships razors and blades to its audience for a buck. They poke fun at the fancy, vibrating 10-blade razors that are on the market today and encourage men to go back to basics.

But, don’t think that means they’re selling an inferior product. Their slogan is: “Our blades are f***ing great,” a tagline that points to (but isn’t the same as) their selling proposition. Remember, if other companies can also say their product is “great,” you have a catchy tagline, not something that sets you apart from the competition.  

Ellusionist

Here’s a business that created a value proposition by catering to a very specific audience. Ellusionist is an online store that sells playing cards to magicians.

Some of the decks are marked, others have a vintage appearance, but the variations are meant to build showmanship for its unique target audience.

Palo Alto Software

Shortly after publishing this article, one of our readers asked if we could share our own USP. Bplans is a resource offered by Palo Alto Software, so here’s what Noah Parsons, our chief operating officer, has to say about our UVP:

For Palo Alto Software, our goal is to provide entrepreneurs with the tools, knowledge, and know-how to help them grow faster and better than their competition.

We’re not just in it to make a buck—we actually want to help people succeed in business as much as possible. Our commitment to entrepreneurs is shown in our thousands of pages of free content that helps demystify the complexities of starting and running a business.

We also provide simple yet powerful tools for entrepreneurs so they can focus more on doing what they love and less on trying to build and understand complex reports and spreadsheets.

• Create a compelling value proposition

The process to land on what differentiates your business and resonates with your audience is well worth the effort. Not only will it help you define a compelling value proposition, but it will make it far easier to streamline your focus as a business owner. Everything from developing audience personas to crafting and testing copy, it encourages you to work through the needs of your customer.

If you’re struggling to work through these steps the best thing you can do is revisit your business plan . It should have everything you need including the problem you’re solving, how your business operates, who your ideal customers are, and what your business stands for. 

*Editor’s note: This article was originally published in 2018. It has been updated for 2021.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Lisa Furgison is a multimedia journalist with a passion for writing. She holds a graduate degree in mass communications and spent eight years as a television reporter before moving into the freelance world, where she focuses mainly on content creation and social media strategies. Furgison has crisscrossed the U.S. as a reporter, but now calls Key West, Florida home. When she's not conducting interviews or typing away on her laptop, she loves to travel.

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Value Proposition

• Written By Britt Skrabanek
• Updated: May 8, 2024

What is a value proposition? A value proposition is a declarative statement that explains why a customer should purchase your product or service. It clearly explains what differentiates you, or makes your offering “unique,” and why you are the best choice on the market.

Value is a word that has nearly lost its meaning. This five-letter word has been overused and abused by brands across every messaging statement, across every website page, across every sales email. The way we do business has changed, and our messaging must change as well.

Brands that truly offer value to their customers — and communicate that value in a meaningful way — are the ones that will weather economic storms. Brands that demonstrate how they are uniquely positioned to meet buyer needs are the ones that will be noticed while their competitors are overlooked.

So, now is the time to do something about your unique value proposition. That starts by understanding its definition, the necessary elements, and how other experts and brands are executing them in a meaningful way.

What is a Value Proposition?

A value proposition (VP) is a declarative statement that explains why a customer should purchase your product or service. The statement summarizes how you will deliver your brand promise and how your offering will deliver value to customers. It clearly explains what differentiates you or makes your offering “unique” and why you are the best choice on the market.

When developing your value proposition statement:

• Don’t be vague or indirect, as your customer does not have time to dissect value positioning statements all day.
• Don’t spout off duplicitous messaging that does the opposite of conveying how you will deliver your promise by instead making promises your brand can’t keep.
• Do remember your competition is never far away when your customer needs a quick and convenient alternative.

Get to the point and appeal to your customer’s most pressing needs. Show why your offering is stronger than the competition so they can make an easy purchasing decision. Be honest and forthright to instill trust in your brand so your customer stays your customer long after the transaction. Serve, don’t sell.

The muse of your value proposition is your ideal customer (aka target audience). This is why, when developing your messaging, “customer value proposition” is an important synonymous term to keep in mind. Why should your customer buy from you — not one of your competitors? Your value prop should answer that question concisely in the voice of your customer .

Of all of the messaging statements out there, value propositions have perhaps the most variations with synonymous terms.

Value proposition  synonyms include:

• Unique selling proposition (USP)
• Unique value proposition (UVP)
• Value proposition (VP)
• Value proposition statement
• Customer value proposition
• Brand value proposition
• Brand proposition
• Proposition of value
• Business value proposition
• Sales value proposition
• Product value proposition
• Value positioning
• Value statement

What a Value Proposition is Not

It’s common for content creators to use various messaging statements interchangeably because, frankly, there is a whole mess of statements to keep up with. Additionally, content is subjective. Content marketers have various styles, approaches, and definitions of various brand statements.

Being that the goal of a value prop is to create content that customers effortlessly connect with, you don’t want to cause confusion. The most common messaging mix-ups are brand statements and mission statements. Let’s clarify some things by detailing these messaging statements.

Value proposition vs. brand positioning statement

This is where the biggest mix-up occurs. If you squint your eyes just so, the words “proposition” and “position” look the same, even though they have completely different meanings. If someone uses “brand proposition” as a synonymous term for value proposition, then all hell breaks loose.

A brand positioning statement  is a persuasive one-line statement that captures the reason the business exists and the legacy the brand wants to be remembered for. This internal-facing statement aligns your team around your brand’s purpose.

A value proposition focuses on your brand’s promise to deliver rather than your brand’s purpose of existence. A positioning statement is created from the value proposition to bring in the deeper “why” or essence of your brand.

Value proposition vs. mission statement

Confusion happens between mission statements and value propositions simply because the mission is a more prominent figure. A brand is much more likely to have an optimized mission statement… that they try to repurpose into other statements with different purposes.

A mission statement might appear on the About page of your website for all to see, but it is very much about the internal perception of the brand. Your mission defines what you do, and it is the core of your business. A unique value proposition is about external perceptions, and it clearly states why a customer should buy your product or service.

A value proposition can most certainly draw inspiration from your mission statement. In mere moments, we’ll explain and show how it can be an extension of your mission statement — and still maintain its structural integrity.

4 Elements of a Value Proposition that Instills Trust

At this point in the game, you have leveraged content to drive awareness of your brand and nurture existing and future customers. Then a wee pandemic comes along, and you don’t know where you stand anymore as a brand. Suddenly, trust and value play a more prominent role for all of us.

When making a big purchase,  trust plays a major role for 92 percent of Americans, 89 percent of U.K. residents, and 95 percent of Canadians. Trust is perhaps another word we content marketers have exhausted as much as value. However, for customers to trust brands in today’s changing business environment, they must immediately recognize the value you offer.

It’s a good time to revisit your value proposition. Make sure you are  staying relevant in uncertain times  and presenting a solution that is responsive to your customer’s current needs.

The basic elements of a value proposition include the following:

• Offering : The product or service that solves problems/adds value. (WHAT)
• Audience : The ideal customer, or target audience, who will benefit from your offering. (WHO)
• Value : The recognizable benefits that matter most to the customer. (WHY)
• Differentiator : The reason the customer should trust you over someone else. (HOW)

Your unique value proposition needs to have meaning; otherwise, your customer will not connect with your brand or your offering. Without that connection, your customers will not have any foundation to build trust upon. Instead, they will turn toward someone else they feel they can trust, such as Competitors X, Y, or Z.

So… how do you write an effective value prop? Five experts in the branding and content marketing space shared their perspectives on what it takes to master the unique value proposition statement. Learn from tried-and-tested themes and templates they have developed — and see examples that bring more context to these strategies.

Value Proposition Examples: Extension of the Core Mission

A value proposition – done right – is an extension of your core mission, which shouldn’t change. For more than 20 years, our mission at Kinesis has been ‘Transformation.” We help our clients transform their organizations, our employees to transform their careers, and our community to be a place of positive change. This one-word mission idea is the driving force in everything we do… think of it as our ‘why.’ Most folks don’t get this right, or they lean on clichés and platitudes, like ‘Integrity’ or ‘Excellence.’ However, once you get the mission right, then you can craft a meaningful value proposition that connects to your internal and external audiences — that’s your value proposition. And, even better, when you know what your mission is, you can adapt and change your value proposition and business model to meet any new challenge. That’s especially important as we enter a time of certain uncertainty. — Shawn Busse , CEO/Founder, Kinesis

TOMS Shoes value proposition

When you’re buying apparel, it can feel pretty meaningless, right? Yet, TOMS Shoes turned purchasing shoes into a way to make progress. Using its One for One business model, for every pair of TOMS shoes purchased by a customer, the company provided a pair of shoes to a child in need.

Just last year, TOMS moved away from its one-for-one model to instead give a third of its net profits  to the company’s giving fund. During COVID, the donations have been redirected to support organizations on the frontlines.

The name TOMS is short for Tomorrow’s Shoes.  Improving lives and communities  are the heart and soul of the TOMS mission statement. This company doesn’t just use their value proposition as an extension of their mission, they also extend their philanthropic nature into all aspects of the business. And, their customers get to be a part of that.

Improve the lives  of millions of people around the world while creating a for-profit sustainable business model, based on a fashionable product for aware consumers.

• Offering : Shoes
• Audience : Conscious consumers
• Value : Giving back with every purchase
• Differentiator : Improving lives and communities

Value Proposition Examples: Short, Punchy, and Powerful

In my agency life and as a freelance writer, I’ve had to write a value prop for a client or two along the way. Whether for a website rewrite or a complete rebranding, it always comes down to one thing: Saying the most powerful thing possible in the fewest amount of words.” In that vein, my No. 1 goal is to first identify what makes this client’s product or service most unique when held up against their competitors. Oftentimes, that means researching the competition to make sure I’m positioning this business in a way where they’ll stand out successfully — not just sound like the rest. Once that element (or elements) is identified, keeping it short and sweet is always my next goal. Because if you can’t express what makes your client different in a short, punchy, and powerful way, then you’re missing the most important chance to connect with customers right from the start. — Gregg Rosenzweig, Writer/Creative Director, GR ink

Glo value proposition

Working out from home has suddenly become the new normal. Glo (formerly known as YogaGlo) launched in 2007, long before subscription-based online fitness classes were a thing.

Convenience and expertise are big perks for busy wellness enthusiasts. Glo subscribers take unlimited classes virtually for the cost of a single studio class. This has always been Glo’s differentiator in the wellness space, as their model makes yoga widely accessible. Throughout COVID, they have provided  a selection of free classes as well .

Glo has an  entire manifesto  that incorporates its mission and vision statements…

…yet Glo keeps its value proposition short, punchy, and powerful while demonstrating how its unique business model helps it stand out in the wellness market.

Thousands of classes at our customers’ fingertips . World-class teachers. A subscription that costs less than one class a month. Anytime, anywhere…

• Offering : Online yoga, meditation, and Pilates classes
• Audience : Wellness-conscious consumers
• Value : Unlimited access to reasonable on-demand classes with expert instructors
• Differentiator : Practicing wherever and whenever.

Value Proposition Examples: Delivering With Distinction

The purpose of a unique value proposition (UVP) is to clearly articulate a brand pillar that is defined during the brand development process. In my first draft, I always start the sentence with ‘only’ and the brand name as a reminder the statement must be a claim of distinction in the market. After the first round of reviews with the client, I often edit that out because it’s implied. The rest of the sentence defines ‘what’ the brand delivers, ‘how’ that is unique in the market, and ‘why’ that matters to the customer. A final statement might look like this: ‘The XYZ experience is crafted to delight our customers and their clients, creating lasting and profitable relationships.’ Finally, I always list current proof points that make the statement true today, along with future-looking ideas that will make the delivery of that promise even stronger down the road. A value proposition should always have room for growth as it drives decision-making in the company to consistently deliver a brand promise to the customer. — Grant Kimball , Certified Brand Strategist, Brand Incite

Alaska Airlines value proposition

Humor me for this next value proposition discussion, as we harken back to pre-COVID times when we all used to travel by plane. Flying is a royal pain in the ass, and we just want to safely get from Point A to Point B. It’s not common to hear people say they love an airline. But, I’ve said “I love Alaska” many, many times.

This is what makes Alaska so distinct — and what makes them stand out from other airline carriers. Passengers legitimately love this airline. People who fly on Alaska can actually agree with their tagline: “Fly Smart. Land Happy.” They are delivering on their brand promise to their customers.

Alaska Airlines focuses on being a  socially responsible company that is all about quality and care . In the midst of the COVID pandemic, Alaska’s home page demonstrates their commitment to relationships in being “on the journey together.” They put their customers at ease with the second section of the page, which has a slideshow with safety and wellness features.

Low fares, great service, and a range of cabin options are the foundation of our offering. The Alaska experience centers around  building long-term relationships  with our guests.

• Offering : Plane tickets
• Audience : Passengers, primarily those flying between West Coast destinations
• Value : Low fares, great service, range of cabin options
• Differentiator : Long-term relationships

Value Proposition Examples: Voice the Value

When a content marketing client asks me to write a value proposition statement for their website — perhaps on a landing page or a product page — I immediately review their branding documents. What tone should I take? Conversational and friendly, or business professional and straightforward? Then I look to the company’s mission statement and product descriptions to discover their core values and the benefits of what they sell so I can highlight those in their value proposition statement. I strive for being relatable and concise to keep viewers on the page, intrigued and informed. —  Angela Tague, Content Marketing Writer and Founder, Web Writing Advice

Zoom value proposition

Raise your hand if you’ve been on a Zoom call this month. How about this week? Everything from birthday celebrations to live educational classes — along with a substantial uptick in virtual meetings and events — is now happening on Zoom.

“With any other solution, I spent a great deal of time trying to start the conference, let alone maintain it. Zoom has made the experience of  collaborating with people as simple as clicking on a link  and zipping right into the conversation.”

Zoom is on a mission  to make video communications frictionless . The aforementioned testimonial by Dr. Joseph Morgan, Texas A&M University validates their platform’s ease of use.

As communication has shifted from in-person to digital environments, Zoom has become a huge value-add for people who want to stay connected and have some semblance of face-time during COVID. The “frictionless” value is clear, as people who have never used Zoom before are rapidly well-versed in the platform.

Zoom helps businesses and organizations bring their teams together in a frictionless environment to get more done.

• Offering : Video communication platform
• Audience : Enterprise teams in finance, education, healthcare, and government
• Value : Connect and accomplish more
• Differentiator : Frictionless or “easy to use”

Value Proposition Template: Content Mission Statement

Lastly, I will leave all of you content marketers in good hands… with Andy Crestodina. Your content mission statement is a type of value proposition — one that is very often forgotten by busy content creators. Andy shares his thoughts and a useful value prop template…

How do you write an effective value proposition? This makes me think of a specific type of value proposition: the content mission statement. The value prop for your content (also known as the content marketing mission statement) is an important foundation for content strategy. If you haven’t made yours yet, you can use this handy template… Our company is where [audience X] finds [content Y] for [benefit Z]. It’s important partly because it keeps the marketer focused, but also because it can be repurposed into a killer call to action. Your email signup box is basically a simplified version of this. It uses the [content Y] and sometimes the [benefit Z]. The highest converting ‘email subscribe’ CTAs are just versions of the content value proposition. — Andy Crestodina , Co-Founder/Chief Marketing Officer, Orbit Media

Creating Your Value Proposition

Albert Einstein’s words continue to be relevant a hundred years after his time: “Strive not to be a success, but rather to be of value.”

By striving for success, you fall into the brand camp that exhaustively weaves the word “value” into every possible opportunity — so that the word eventually loses its meaning. By focusing on being of value, you show value without needing to talk about it. Rather than having a value proposition that has no meaning, you have a meaningful statement instead.

Creating a value proposition statement is yet another creative chance to use the “show, don’t tell” approach to writing. String together words that create an immersive experience for your intended audience. When you allow your audience to be in the room, you establish credibility and connectivity… and invite them to stay and do business with you.

Need help creating your value proposition? Look no further. ClearVoice has your back. Easily speak with a content specialist today regarding your needs, wants, and content goals.

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Home Blog Marketing 10 Inspiring Value Proposition Examples for Business Success

10 Inspiring Value Proposition Examples for Business Success

Value proposition examples can serve as a powerful tool for business owners, eCommerce professionals, marketers, entrepreneurs, and founders looking to improve their marketing campaigns. A well-crafted value proposition makes your product or service stand out in the market by highlighting its unique benefits and key differences from competitors.

In this blog post, we’ll explore how to create a value proposition that resonates with your target customers by identifying problems worth solving and analyzing customer segments for targeted messaging, as well as crafting compelling headlines. We’ll discuss the importance of identifying problems worth solving and how to analyze customer segments for targeted messaging. Furthermore, you’ll learn how to craft compelling headlines that balance clarity with creativity.

Additionally, we’ve compiled 10 outstanding value proposition examples from successful companies across various industries to inspire your own efforts. Lastly, we will explore methods for testing and refining your value propositions while adapting them to changing buying behaviors and market conditions. Through utilization of these ideas, you can construct a solid base for achieving success and expansion in the current challenging market.

Understanding the Value Proposition

A value proposition statement is a crucial aspect of any business, as it tells potential customers why they should work with your company. It focuses on solving a problem worth addressing and can be derived from testimonials and feedback from previous clients. This section looks into the necessity of having a distinct value proposition and how to detect issues worth resolving.

Importance of Having a Clear Value Proposition

An effective value proposition sets you apart from competitors by highlighting your unique offerings in an easily understandable manner. It allows customers to quickly grasp what makes your product or service different and better than others in the market. A strong value proposition not only attracts new leads but also helps retain existing ones by reinforcing their decision to choose you over other options.

To create an impactful value proposition, consider these three key elements:

• Brevity: Keep it short and simple; aim for one sentence that sums up your core offering.
• Clarity: Use plain language that speaks directly to customer needs without jargon or buzzwords.
• Differentiation: Clearly articulate how your solution stands out from competing alternatives in terms of features, benefits, or pricing.

Identifying Problems Worth Solving

To craft an appealing value proposition, you must first ascertain the issues that are most pressing for your target audience through research and analysis. This requires research into customer pain points through methods such as surveys, interviews, focus groups or analyzing online reviews on platforms like TrustPilot.

You may also gather insights by observing industry trends or studying competitor offerings – both direct and indirect – to identify gaps in the market that your product or service can fill. Once you have a clear understanding of the problems worth solving, tailor your value proposition to address these issues effectively.

For example, Opera, a web browser company, identified speed and security as major concerns for internet users. Their value proposition focuses on providing a fast, secure & easy-to-use browser that addresses these pain points directly.

It is essential to understand the value proposition before creating your unique canvas. With this in mind, let’s explore how to create a successful value proposition canvas for targeted messaging and mapping out customer pains and gains.

Creating Your Unique Value Proposition Canvas

The value proposition canvas is a powerful tool that helps businesses visualize their customer’s needs, pain points, and desired outcomes. By understanding these aspects, you can create or improve your unique selling point to attract more leads. In this section, we will discuss how to analyze customer segments for targeted messaging and map out customer pains and gains.

Analyzing Customer Segments for Targeted Messaging

To accurately create a value proposition, it is essential to identify the target audience by creating customer segments based on common characteristics. Start by creating customer segments, which are groups of people with similar characteristics such as demographics, interests, or behaviors. This allows you to tailor your message specifically for each segment.

• Demographics: Consider factors like age, gender, income level, education level and location when identifying your target customers.
• Interests: What hobbies or activities do they enjoy? Are there any common themes among them?
• Behaviors: How do they interact with products or services in your industry? Do they have specific preferences or habits?

Mapping Out Customer Pains and Gains

Creating an attractive offer necessitates considering the struggles (or “pains”) that potential customers experience as well as accentuating the advantages (or “gains”) they will acquire from utilizing your product/service. To identify these elements effectively,

• List down all possible pain points associated with the problem(s) you aim to solve – consider both functional (e.g., cost) and emotional (e.g., frustration) factors.
• Next, brainstorm the gains that your product/service can provide – think about how it will make customers’ lives better or easier.
• Finally, prioritize the most significant pains and gains based on their relevance to your target audience. This will help you focus on what truly matters to them when crafting your value proposition message.

By analyzing customer segments and mapping out their pain points and desired outcomes, you can create a unique value proposition canvas that serves as a foundation for developing an effective marketing strategy. Remember to keep refining this process as you gather more data about your customers and market trends over time.

Creating a unique value proposition canvas can be an effective way to gain insight into your target customers and craft messaging that resonates with them. Crafting an effective headline for your value proposition is the next step in optimizing customer engagement and creating lasting relationships.

Crafting an Effective Headline for Your Value Proposition

An attention-grabbing headline is essential in communicating your unique offering effectively. It should convey the core benefit of your product or service while being concise and easy to understand. In this section, we will explore tips for writing powerful headlines and striking a balance between clarity and creativity.

Tips for Writing Powerful Headlines

• Focus on the main benefit: Clearly state the primary advantage that customers can expect from using your product or service. For example, Opera’s value proposition headline reads: “Fast, secure & easy-to-use browser”. This highlights their browser’s speed, security, and user-friendliness.
• Keep it short: Aim for a maximum of six to eight words in your headline. A shorter headline is easier to comprehend quickly and leaves a lasting impression on potential customers.
• Avoid jargon: Use simple language that speaks directly to your target audience without confusing them with industry-specific terms they may not understand.
• Incorporate emotional triggers: Appeal to emotions by using power words such as “free,” “exclusive,” or “limited-time offer.” These trigger curiosity and urgency among readers, making them more likely to engage with your content further.

Balancing Clarity with Creativity

To create an effective value proposition headline, you must strike a balance between clarity (ensuring that readers understand what you are offering) and creativity (captivating their interest). Apple does this exceptionally well through its aspirational messaging like “ iPhone – The Experience Is the Product “. This headline conveys a sense of exclusivity and innovation while remaining clear about the product being offered.

When crafting your value proposition headline, always prioritize clarity over creativity. A creative but unclear message will not resonate with potential customers, whereas a clear message—even if less imaginative—will effectively communicate your offering’s benefits. Experiment with different headlines to find one that strikes the perfect balance between these two elements.

Crafting an effective headline for your value proposition is key to making a lasting impression on potential customers. Examining a few successful value propositions can be illustrative in demonstrating the importance of creating an effective headline for your value proposition.

10 Examples of Great Value Propositions

Learning from successful companies’ value propositions will help you develop one that resonates with your target audience. Here are ten examples of great value propositions:

• Dollar Shave Club – Affordable razors delivered monthly: Dollar Shave Club disrupted the shaving industry by offering a subscription service for high-quality, low-cost razors. Their straightforward and humorous approach to marketing helped them stand out in a crowded market. Check out their famous launch video .
• HubSpot – All-in-one inbound marketing software: HubSpot’s comprehensive suite of tools simplifies digital marketing efforts for businesses of all sizes. They focus on providing an integrated solution that helps marketers attract, engage, and delight customers. Learn more about their marketing platform .
• Skype – Free calls anywhere around the world: Skype revolutionized communication by offering free voice and video calls over the internet, making it easy for people to stay connected regardless of location or device type. Explore their various features on the official  Skype website  .
• Airbnb – Unique accommodations at affordable prices: Airbnb transformed travel by connecting hosts who have spare rooms or entire homes with travelers seeking unique lodging experiences at competitive rates compared to traditional hotels.You can find everything from treehouses to castles on their extensive listing database—check out some amazing properties on their Top Picks page.
• Vimeo – High-quality video hosting without ads: Vimeo offers a platform for creators to host, share, and sell their videos in high definition without the distraction of advertisements. They also provide tools for collaboration and analytics. Discover more about their services on the  Vimeo Features page .
• Pinterest – Visual discovery engine for ideas: Pinterest allows users to discover, save, and organize visual content from around the web based on their interests. It’s an excellent source of inspiration for everything from home decor to fashion trends.Create your own boards or explore popular categories by visiting the Popular Pins section on Pinterest.
• Mailchimp – Email marketing made simple: Mailchimp is an all-in-one email marketing platform that helps businesses create targeted campaigns, automate workflows, and analyze performance data with ease. Learn how they can help you grow your business through effective email marketing strategies at their  Email Marketing hub  .
• Evernote – Organize everything in one place: Evernote provides a digital workspace where users can capture notes, images, documents and audio recordings across multiple devices—making it easy to stay organized both personally and professionally.To see how Evernote can simplify your life visit their official  Features page  . li>
• Slack- Collaborate seamlessly across teams: Slack is a communication and collaboration tool that brings team members together in one centralized platform. It integrates with various third-party apps, streamlines workflows, and fosters transparency within organizations.Discover how your team can benefit from using Slack by visiting their  Features page  . li>

These examples showcase how companies have crafted compelling value propositions that resonate with their audience while addressing specific pain points or needs. Use these examples as inspiration when developing your own unique value proposition.

These 10 examples of great value propositions demonstrate the power and potential for businesses to create compelling offerings that resonate with their customers. Examining ways to trial and perfect your value proposition so as to suit customer requirements is the focus now.

This section provides 10 examples of great value propositions from successful companies such as Dollar Shave Club, HubSpot, and Airbnb. These companies have effectively addressed specific pain points or needs of their target audience with straightforward and compelling messaging that resonates with customers. Readers can use these examples as inspiration when developing their own unique value proposition.

Testing and Refining Your Value Proposition

Once you have crafted your value proposition, it is crucial to test its effectiveness and make improvements based on feedback from customers. This will ensure that your message remains relevant and compelling. In this section, we’ll discuss some methods for testing value propositions and how to adapt them according to customer needs and market changes.

Methods for Testing Value Propositions

To gauge the impact of your value proposition on potential clients, consider employing various testing techniques such as:

• A/B Testing: Create two different versions of your value proposition statement or headline, then display each version randomly to a portion of your target audience. Analyze which version performs better in terms of engagement or conversion rates. You can use tools like Optimizely or VWO .
• User Surveys: Collect feedback directly from users by asking them about their perception of the product’s benefits after reading the value proposition statement. Tools like SurveyMonkey , Typeform , or Google Forms are helpful in creating surveys.
• Landing Page Analysis: Track user behavior on landing pages featuring different variations of the value proposition using analytics tools like Google Analytics or Hotjar. Look for patterns indicating whether certain statements resonate more with visitors than others.

Adapting to Customer Needs and Market Changes

Your business environment may change over time, which means your value proposition should evolve accordingly. Keep an eye on the following factors to ensure that your message remains relevant:

• Customer Feedback: Regularly review customer feedback and testimonials to identify any recurring pain points or needs that may not be addressed by your current value proposition.
• Competitor Analysis: Monitor competitors’ offerings and marketing messages to stay informed about new trends in the industry. If a competitor is addressing a need more effectively than you are, consider refining your value proposition to better compete.
• Market Research: Stay updated with market research reports and industry news for insights into emerging trends or shifts in consumer behavior. This information can help you adapt your messaging as needed.

Incorporating testing methods and staying attuned to changes in customer needs will enable you to maintain a compelling value proposition that resonates with potential clients. Remember, it’s essential always to iterate and improve upon this critical aspect of your business strategy.

By testing and refining your value proposition, you can ensure that it accurately reflects customer needs and market changes. To effectively communicate this message to customers, consider implementing the value proposition across multiple channels.

Creating an effective value proposition is essential for any business, but it must be regularly tested and refined to ensure its continued relevance. Methods such as A/B testing, user surveys, and landing page analysis can help gauge its effectiveness. Additionally, staying attuned to customer needs and market changes through regular feedback review, competitor analysis, and market research will ensure that your message remains relevant.

Implementing Your Value Proposition Across Channels

A strong value proposition should be consistently communicated across all marketing channels, including websites, social media platforms, email campaigns, and more. Consistency in messaging helps build trust with potential clients. In this section, we will discuss how to integrate your value proposition into various marketing channels effectively.

Integrating the Value Proposition into Website Design

For your website, it’s important to make sure that potential customers can quickly identify the value you provide by featuring your value proposition prominently on the homepage or landing pages. Here are some tips for incorporating your message into website design:

• Use clear and concise language: Ensure that visitors can quickly understand what you offer by using simple words and phrases that communicate the benefits of working with you.
• Create a compelling headline: As mentioned earlier in this article (Heading 3), an effective headline is essential for grabbing attention. Place it at the top of your page so visitors see it immediately upon arrival.
• Add supporting visuals: Images or videos can help illustrate how your product or service solves customer pain points. Consider using graphics like infographics or explainer videos to support your claims visually.
• Incorporate testimonials and case studies: Social proof from satisfied customers adds credibility to your offering – consider adding quotes or linking to detailed case studies showcasing successful client outcomes as a result of partnering with you.-li>.

Incorporating the Message in Social Media Content

Social media provides an excellent opportunity to reach new audiences while reinforcing existing relationships through consistent messaging about what sets you apart from competitors. To ensure success when sharing content related to Factorial Digital’s SEO services on social media, follow these guidelines:

• Share valuable content: Post articles, infographics, and videos that demonstrate your expertise in SEO, CRO, and SEM. This will help establish you as a thought leader in the industry.
• Highlight customer success stories: Share testimonials or case studies showcasing how clients have benefited from working with Factorial Digital to improve their online presence and drive growth.-li>.
• Create engaging visuals: Use eye-catching images or graphics to accompany your posts – this can help increase engagement rates by making your content more shareable.
• Tailor messaging for each platform: Adapt the tone of voice and language used in social media posts according to each platform’s audience (e.g., LinkedIn might require a more professional tone than Twitter).-li>.

In addition to website design and social media content integration, don’t forget about other marketing channels like email campaigns or even offline materials such as brochures. By consistently communicating your value proposition across all touchpoints with potential customers, you’ll build trust while reinforcing why they should choose Factorial Digital for their growth marketing needs.

Frequently Asked Questions Value Proposition Examples

What are examples of value proposition.

Examples of strong value propositions include Dollar Shave Club’s affordable razors delivered monthly, HubSpot’s all-in-one inbound marketing software, Skype’s free calls worldwide, Airbnb’s unique accommodations at reasonable prices, and Spotify’s personalized music discovery. These companies effectively communicate the benefits they offer to their target audience.

What is a value proposition article?

A value proposition article is a piece of content that explains the importance and components of a company’s unique selling point. It typically includes information on crafting an effective message for your target audience, showcasing real-life examples from successful businesses, and tips for testing and refining your own value proposition.

What is Starbucks’ value proposition?

Starbucks’ value proposition revolves around offering premium quality coffee beverages in a comfortable atmosphere with exceptional customer service. They focus on creating an inviting “third place” between home and work where customers can relax or socialize while enjoying handcrafted drinks made from high-quality ingredients.

What is Apple’s value proposition?

Apple’s primary value-proposition focuses on providing innovative technology products with seamless user experience through intuitive design and powerful performance. Their commitment to excellence in hardware design combined with robust ecosystems allows them to create devices that cater to both personal enjoyment as well as professional productivity needs.

As you have seen, crafting an effective value proposition is essential for any business looking to stand out in the market. By understanding your unique offering and creating a compelling headline that resonates with customers, you can create a winning value proposition. Additionally, by testing and refining it across different channels, you will be able to maximize its impact on potential buyers. With these tips in mind along with some inspiring examples of great value propositions from successful businesses, we hope that this article has provided useful insights into how to craft your own powerful value proposition.

Unlock your business’s potential with our comprehensive suite of SEO, CRO and SEM services. Let us help you maximize the value proposition for your digital marketing strategy today!

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• Strategy Explained
• Business Strategy
• Creating a Successful Strategy
• Corporate Strategy
• The Role of Leaders
• Related Topics

Unique Value Proposition

• Distinctive Value Chain
• Making Strategic Trade-offs
• Fit Across the Value Chain
• Continuity of Strategic Direction

A value proposition defines the kind of value a company will create for its customers. Finding a unique value proposition usually involves a new way of segmenting the market. Often, a novel value proposition expands the market . For example, until the iPad came along, customers didn’t realize they wanted tablets—but Apple effectively created a new demand.

While the value chain focuses internally on operations, the value proposition is the element of strategy that looks outward at customers, at the demand side of the business. Strategy is fundamentally integrative, bringing the demand and supply sides together.

Defining the Value Proposition: Three Essential Questions

• Which customers are you going to serve? Within an industry, there are usually distinct groups of customers, or customer segments. A value proposition can be aimed specifically at serving one or more of these segments. For some value propositions, choosing the customer comes first. That choice then leads directly to the other two legs of the triangle: needs and relative price.

In many cases, choosing the need the company will serve is the primary decision that leads to the other two legs of the triangle. Here, strategy is built on a unique ability to meet a particular need or a subset of needs. Often that ability arises from the specific features of a product or service.

Typically, value propositions based on needs appeal to a mix of customers who might defy traditional segmentation. Instead of belonging to a clear demographic category, the company’s customers will be defined by the common need or set of needs they share at a given time.

For some value propositions, relative price is a primary leg of the triangle. Some value propositions target customers who are overserved (and hence overpriced) by other offerings in the industry. A company can win these customers by eliminating unnecessary costs and meeting “just enough” of their needs. Where customers are overserved, the lower relative price is often the dominant leg of the triangle.

Conversely, some value propositions target customers who are underserved (and hence underpriced) by other offerings in the industry. These customers want an enhanced product or service and are willing to pay a premium for it. The unmet need is typically the dominant leg of the triangle, while the higher relative price supports the extra costs the company has to incur to meet it.

Operational Effectiveness vs. Strategy

Your company must have different answers from your competitors. Otherwise, you are competing on operational excellence. Does the customer understand the difference? Do employees understand the difference? You must be able to define and explain the uniqueness of your value proposition.

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A value proposition, in the business realm, articulates the unique value a company promises to deliver to its customers. It’s a clear statement that explains how a product or service solves a problem, fulfills a need, or provides benefits that are unavailable elsewhere. For startups and established businesses alike, crafting a compelling value proposition is crucial. It not only distinguishes them from competitors but also directly impacts their ability to attract and retain customers. This concept is central to the value proposition canvas, a tool that helps businesses identify and communicate the unique value they provide. A strong value proposition, or “value prop,” goes beyond generic benefits to highlight specific advantages, making the customer value proposition not just a tagline, but the essence of a brand’s promise.

Key Takeaways

• Clear, User-Centric Differentiation: The foundation of a compelling value proposition lies in its ability to clearly differentiate a business from its competitors. This differentiation should not be based on features alone but on the unique benefits and value delivered to the customer. A user-centric approach ensures that the value proposition resonates deeply with the target audience, addressing their specific needs and challenges.
• Understanding the Competitive Landscape: A well-defined value proposition is informed by a thorough analysis of the competitive landscape. It requires an understanding of what rivals are offering and how they are positioning themselves. This knowledge enables a business to articulate a unique value proposition that stands out by offering something better, different, or more relevant.
• Early Definition and Specificity: Defining a value proposition early in the business planning process is essential. It provides a clear direction for all marketing, sales, and product development efforts. Being specific about the benefits and outcomes customers can expect makes the value proposition more compelling and easier for potential customers to grasp.
• Addressing Unmet Needs: A successful value proposition speaks directly to the unmet needs of its target audience. It clearly communicates how the business’s offering solves a problem or improves the customer’s situation in a way that no other product or service can.
• Quantifiable Benefits: Whenever possible, a value proposition should include quantifiable benefits. This could mean specifying how much time or money customers can save, how much efficiency is gained, or any other measurable impact. Such specificity makes the value proposition more tangible and believable.
• Relevance and Clarity: For a value proposition to be effective, it must be both relevant to the target audience and clearly communicated. Avoiding technical jargon and ensuring the message is easily understood are critical for broad appeal. The use of a value proposition canvas can be particularly helpful in aligning a business’s offerings with customer needs and preferences.
• Continuous Refinement: The business landscape is always changing, as are customer needs and competitive dynamics. A value proposition is not a static statement but should evolve based on ongoing customer feedback, market trends, and competitive moves. This continuous refinement ensures that the value proposition remains compelling and relevant over time.

Relevance to Different Audiences

Business school students.

For business school students, both at the undergraduate and graduate levels, understanding the concept of a value proposition is crucial. It lays the foundation for courses in marketing, entrepreneurship, and strategy, teaching students how to communicate the unique value a company offers to its customers. Courses like Marketing Management, Entrepreneurial Ventures, and Strategic Management often delve deeply into the art and science of crafting compelling value propositions. These courses encourage critical thinking about how businesses differentiate themselves in the market and meet the unique needs of their customers.

A recommended read for students eager to explore this concept further is Value Proposition Design: How to Create Products and Services Customers Want by Alexander Osterwalder, Yves Pigneur, Gregory Bernarda, and Alan Smith. This book offers practical insights into identifying and meeting customer needs, complementing academic learning with actionable tools and frameworks.

Pre-revenue Startups

For startups in the pre-revenue stage, forming an initial value proposition is a critical hypothesis that underpins their business idea. This hypothesis is crucial for conducting Pre-Vision Interviews , which are based on the Jobs-to-be-Done theory . These interviews aim to understand potential customers’ functional, social, and emotional needs, as well as their behavior and unmet desires, by engaging with competitors’ customers to discover opportunities for innovation. This approach ensures that the product or service being developed aligns perfectly with customer needs.

The initial value proposition serves as a guide for these conversations, focusing on what the startup believes it can uniquely offer. As startups move through the Pre-Planning Process , incorporating insights from Core Cost Analysis and continuous customer feedback, the value proposition should be refined. This iterative process helps startups avoid investing in unproven concepts and ensures their offering resonates deeply with their target audience.

For Small and Medium-sized Business (SMB) owners, the value proposition is not a set-it-and-forget-it part of the business model. As customer needs evolve, so too must the value proposition. The constant refinement and updating of the value proposition are vital for maintaining a competitive edge. This requires SMB owners to stay in close contact with their customer base, monitor market trends, and anticipate changes in customer preferences.

The agility to adapt the value proposition ensures that SMBs remain relevant and continue to meet their customers’ changing needs effectively. This ongoing process may involve tweaking product features, adjusting service offerings, or even rethinking the target market. By making the value proposition a central focus of their business strategy, SMB owners can ensure long-term growth and success in a competitive landscape.

Building a Compelling Value Proposition: A Step-by-Step Guide

Crafting a value proposition that resonates with your target market is a pivotal step in defining your brand’s identity and competitive advantage. A great value proposition communicates the unique benefits your company offers to its ideal customer, distinguishing you from the competitor. Here’s how to create a value proposition statement that captures the essence of your offering and why a potential customer should choose you.

1. Identify Your Unique Selling Proposition (USP)

Your USP is the cornerstone of your value proposition. It highlights the unique benefit or feature that makes your product or service better than the rest. To identify your USP, conduct thorough market research to understand your competitive landscape. What do you offer that your competitors don’t? This could be anything from a unique feature, a specific benefit, superior quality, or an exceptional customer experience. Your USP should align with your mission statement, reflecting your company’s core values and objectives.

2. Adopt a User-Centric Approach

Understanding your target customer is crucial. Develop a detailed customer profile that goes beyond demographics to include psychographics, pain points, and aspirations. What does the ideal customer value? How do your offerings alleviate their pain points or enhance their lives? Your value proposition should articulate how your product or service enriches the prospective customer’s life or business. This user-centric approach ensures that your value proposition resonates on a personal level, making your offering not just a choice but a solution.

3. Quantify Your Benefits

Concrete, quantifiable benefits make your value proposition more compelling. Instead of vague promises, specify the exact benefits a customer can expect. This could be in terms of time saved, percentage increases in efficiency, cost reductions, or other measurable outcomes. Quantifying benefits helps cement your competitive advantage, making it clear why a potential customer should prefer your offering over others.

4. Understand and Articulate the Customer-Brand Relationship

Your value proposition should reflect the relationship you aim to build with your customers. It’s not just about the transaction but about the ongoing interaction and the experience your brand provides. How does your offering fit into the broader context of your customer’s life or business? Your value proposition statement should convey a sense of partnership and commitment, indicating that choosing your brand is a step toward a mutual goal.

5. Refine Based on Feedback

A good value proposition is not set in stone; it evolves. As you gather feedback from your target market, be prepared to refine your value proposition. Listen to what your customers and potential customers say about your product or service. What aspects do they find most valuable? Are there benefits you hadn’t considered? Use this feedback to hone your value proposition, ensuring it remains relevant and compelling as market dynamics shift.

Creating a value proposition is an iterative process that involves deep understanding of your target market, clear articulation of your unique selling proposition, and continuous refinement based on customer feedback. By following these steps, you can develop a great value proposition that clearly communicates the unique benefits your company offers, setting you apart from competitors and resonating with your ideal customer.

Frequently Asked Questions

• What is a value proposition and why is it important?

A value proposition is a statement that summarizes the unique benefits or value that a company promises to deliver to its customers. It’s essential because it communicates to a customer segment why they should choose your product or service over competitors. In essence, it defines the main reason your offering is the best solution to their problem or need. For small businesses and professional services, a clear value proposition is crucial for focusing marketing efforts and guiding business strategy.

• How can startups differentiate their value proposition from competitors?

Startups can differentiate their value proposition by conducting thorough market research to identify gaps in the market or unmet needs within their target customer segment. Emphasizing unique selling propositions (USPs), such as innovative features, superior quality, or exceptional customer service, helps create a competitive advantage. Tailoring the value proposition to address the specific “customer job” or need can also make it more compelling and relevant to the target audience.

• What role does customer feedback play in refining a value proposition?

Customer feedback is invaluable in refining a value proposition. It provides insights into what aspects of your product or service are most valuable to your customers and identifies areas for improvement. Engaging with your customer segment through surveys, interviews, or direct feedback can reveal whether your marketing effort resonates with their needs and expectations. This continuous loop of feedback and adjustment helps keep your value proposition aligned with customer needs and market trends.

• How can quantifiable benefits enhance a value proposition?

Quantifiable benefits, such as specific time savings, cost reductions, or performance improvements, make a value proposition more concrete and believable. They provide clear evidence of the value your product or service delivers, making it easier for a potential customer to understand the return on their investment. For small businesses, highlighting quantifiable benefits can be a powerful tool in marketing efforts, as it offers tangible reasons for customers to choose their services over others.

• When should a startup begin defining its value proposition?

A startup should begin defining its value proposition as early as possible in the business planning process. A well-crafted value proposition is foundational to developing business strategy, branding, and marketing efforts. It helps ensure that all aspects of the business are aligned toward delivering unique value to its intended customer segment. Starting early also allows for the incorporation of customer feedback into the value proposition, ensuring it remains relevant and compelling as the business grows.

Related Terms

Social Proof: Social proof is the psychological phenomenon where people conform to the actions of others under the assumption that those actions reflect the correct behavior. In marketing, social proof can be leveraged to reinforce a value prop by showcasing testimonials, reviews, endorsements, and case studies from satisfied customers. It addresses customer pains indirectly by demonstrating real-life successes and customer satisfaction, thereby validating the value proposition.

Customer Pains: Customer pains refer to the specific problems, needs, or challenges that potential customers face. Understanding and articulating how your product or service alleviates these pains is a crucial component of an effective value proposition. It directly ties your offering to the customer need, making your value prop more relevant and compelling to your target audience.

Marketing Strategy: A marketing strategy is a comprehensive plan formulated to reach and convert leads into customers by communicating the benefits of your product or service. A well-defined value proposition is a cornerstone of this strategy, guiding the messaging and positioning that will resonate with the target market. It helps in aligning marketing efforts with the customer need and differentiating from a competitor.

Customer Need: Customer need refers to the desire or requirement of consumers that drives them to seek out and purchase goods or services. A value proposition must clearly address a specific customer need, providing a solution or benefit that meets or exceeds expectations. Identifying and responding to these needs is vital for creating a value prop that attracts and retains customers.

Value Proposition Canvas: The value proposition canvas is a strategic tool used to ensure that a product or service is positioned around what the customer values and needs. It helps businesses to more clearly understand their customers’ pains and gains and how their offering alleviates those pains or enhances those gains. This canvas is instrumental in refining the value prop to ensure it’s aligned with the target customer’s priorities and expectations.

Competitor: A competitor refers to any business or entity that offers a similar product or service to the same target market as yours. Understanding your competitors and their value propositions is critical for differentiating your offering. Competitive analysis helps in identifying gaps in the market that your value proposition can fill, thereby offering a unique selling proposition to your customers.

Also see: Elevator Pitch , Marketing Plan , Jobs-to-Be-Done Theory

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More From Forbes

Crafting your personal value proposition.

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Simin Cai is the President and CEO at Go!Foton.

A company’s value proposition is a well understood concept in business, but few people really talk about an individual’s value proposition. Rather than differentiate a product or service in the marketplace, a personal value proposition is the expertise someone brings to the table—whether in business or in the community. It consists of professional skills and talents, but also the attributes that an individual has cultivated in the crucible of their passions and interests.

Developing your value proposition is important regardless of whether you sit near the top of an organization or want to position yourself for promotion. For employees, I suggest reframing your career as the business that you are running to get the most out of this idea. How are you demonstrating your value while remaining true to yourself? In a competitive job and business market, someone aware of their value proposition is already ahead of the game. These are three steps to develop and apply this form of knowing yourself, one inextricably linked to the next.

1. Know Your Expertise

Expertise, as I define it, is a broader concept than technical skills or professional qualifications. It is holistic. For example, I am an expert in photonics—the study and application of light-related technologies. But I also have expertise in analytical skills. In somebody else’s case, their extracurricular expertise might be centered around game theory , psychology, or anything that adds another layer of understanding to how the world works.

Remember, you cannot change who you are, nor should you try. I could not turn off my analytical nature if I tried. But refraining from interjecting my worldview is not a form of self-denial; instead, it informs all my interactions as a form of authenticity . In other words, to know one’s expertise is to know oneself.

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Google chrome gets second emergency update in a week as new exploit confirmed, metallica makes history with their new no 1 single.

For employees wanting to advance their career, they should identify their professional and personal expertise and then see if those are mutually informing. For instance, does expertise in analysis lend itself to strategic thinking or how to create more operational efficiencies? This can be a revealing exercise when combined with the next form of knowing.

2. Know Your Audience

We have all been there when someone got carried away talking about their favorite subject and lost touch with their audience. They go on and on without seeing if anyone is actually listening. To bring your value proposition to the world, you cannot afford to live inside your own mind and must connect it to your audience. As much as knowing one’s expertise puts people at the center of their experience, they are not the most important person in the room.

As you develop your personal value proposition, the audience can be your boss, your team leader, the customer or the client. Being able to communicate the unique benefits you bring to stakeholders through insights and ideas is one part of letting them know your value—but performance can speak more directly. My expertise is also strategic thinking, something I proved when working alongside my supervisor, who was CEO. When he was promoted, I took over his job.

Without tailoring your value proposition to the audience, it won’t be recognized, much less rewarded. To use a sporting analogy, a goaltender’s value proposition may be the mental strength to stop the other side from scoring, but also to remain steadfast when they do concede a goal. Who is the audience? It’s the coach. The goaltender has to connect their mental strength to winning for the coach on a consistent basis.

So, before entering a meeting or networking event, research your audience and get to know what aspects of your expertise to bring forward and what aspects to leave in the background. After all, it’s the coach who will decide whether to keep the goaltender in the next game.

3. Connect Expertise And Audience

From a business perspective, everybody is replaceable. But from an individual perspective, people need to make themselves as irreplaceable as possible. You do that by connecting your expertise with customer benefit in a differentiated way. That means strengthening your value proposition so you are providing something that nobody else is providing. Then your job is more likely to be secure.

This is a dynamic process. Someone may identify a customer benefit they want to meet, but first they have to address a gap in their existing skill set or expertise. Developing one’s expertise is never done and continual learning helps maintain relevance and marketability . If you go to a club or a community meeting, practice asking what you are bringing to every conversation. Then, align your expertise with the audience so you are solving problems they want solved.

In a business context, continue to find ways to enhance the benefit to the customer so that as you are growing your career, you are also growing the company. That kind of commitment won’t go unnoticed, especially if you know that being authentically yourself and serving others are complementary, not mutually exclusive.

Seeing From The Client’s Perspective

Understanding one’s point of difference is somewhat of a paradox: You have to be self-focused to ensure your skills match your ambitions, but at the same time let go of self-concern to deliver what the client actually needs—not what you may think they need. For those treating career growth as their own personal business, this is the path of mutual growth. When you connect expertise, audience, and the unique benefits you can bring to people, you will have discovered your personal value proposition and carved out your own place in the market and the world.

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Costco Stock Just Hit an All-Time High. It's Now More Expensive Than Nvidia According to This Key Metric.

F ew large companies have embodied the resilience of brick-and-mortar retail amid the transition to the digital age quite like Costco Wholesale (NASDAQ: COST) , which hit an all-time high on May 10.

The stock is up a mind-numbing 576% over the last decade. It is now the third-most-valuable U.S. consumer staples company behind Walmart (NYSE: WMT) and Procter & Gamble , and ahead of giants like Coca-Cola and PepsiCo .

Costco has done an excellent job building a brand that exudes customer loyalty. But the stock price has grown at a much faster rate than important metrics like sales, earnings, and operating cash flow.

Here's what makes Costco such a phenomenal business, and whether or not the blue-chip stock is a buy now.

Costco is in a league of its own

Costco has an effective and unique business model with a clearly defined customer value proposition.

Costco will charge an annual membership fee ($60 for Gold Star, $60 for Business, $120 for Executive) but will offer compelling prices, a variety of consumer discretionary and staples goods, and services from tires and auto to eye exams and more. There's really no other business quite like Costco in this regard, and the data shows that Costco is giving customers a great deal.

Here are some key metrics from Costco's latest income statement for the first two quarters of fiscal 2024, or the 24 weeks ended Feb. 18, 2024.

Data source: Costco.

Net sales dominate Costco's overall revenue, but membership fees are essentially pure profit. In this vein, membership fees make up a little more than half of Costco's operating income.

With $4.05 billion in operating income from $116.24 billion in sales, Costco has an operating margin of just 3.6%. But it gets even more razor-thin if you remove membership fees from operating income. Subtracting merchandise costs and SG&A expenses from net sales, Costco would have an operating margin of just 1.6% on its merchandise. That means that for every dollar a customer spends, Costco only makes $1.60 in operating income. For context, Walmart is making $4.20 on the dollar in operating income.

Normally, a higher operating margin is better. But retail is a bit different. You have higher-end outlets that rely on lower volumes and higher margins, and then there's the discount retail companies like Walmart that have higher revenue and low margins. Costco can create an excellent customer experience and value for its customers thanks to its hybrid model of membership fees and sales on goods and services.

Once customers sign up for a membership, there's an incentive to shop at Costco more to make the fee worthwhile. Costco pulls on multiple levers to get customers to come in as much as possible by offering a variety of discretionary goods like consumer electronics, appliances, clothing -- even gold bars, $1.50 hot dogs, and the services mentioned before. Costco provides a lot of value to its customers, and it doesn't overcharge, which is evident in the margins. And yet it can still grow profits because it is an extremely efficient business.

Going back to the table above, the two big operating expenses are merchandise costs and SG&A expenses. Costco does very little marketing, and that helps the business operate efficiently. Costco's SG&A expense as a percentage of revenue for the last four quarters has been just 9%, compared to over 20% for Walmart and Target . Costco's low SG&A expenses are another example of why it is a well-run business.

Another benefit of the membership model is how it affects Costco's predictability and recession resilience. With a little over half of operating income already accounted for thanks to membership fees, a dip in sales or pullbacks in consumer spending won't affect Costco as much as a competitor that doesn't have a steady stream of membership fee income. In its Q2 fiscal 2024 earnings presentation, Costco said that it had 73.4 million household members, 132 million cardholders, a 92.9% renewal rate in the U.S. and Canada, and $4.7 billion on membership fees over its last 12 months. That's an incredibly base and high renewal rate in what has been a challenging time for many retailers.

The problem isn't Costco as a business, it's Costco as an investment opportunity.

More expensive than Nvidia

The price-to-earnings (P/E) ratio is one of the most common valuation metrics. It is simply a stock's price divided by earnings per share over the last 12 months. So a 20 P/E ratio means that the current valuation of a company is 20 times a year's earnings. The current P/E of the S&P 500 is 27.1.

The forward P/E is also important, particularly for growth stocks. For example, Nvidia (NASDAQ: NVDA) has a 75.3 P/E, compared to Costco's 49.2 P/E. But Nvidia's earnings are expected to double over the next year, while Costco's are expected to increase at a mid-single-digit growth rate. Thanks to the implied growth, Nvidia's forward P/E is just 35.7, compared to 49.3 for Costco.

Costco deserves a premium valuation due to the strength of its business model. And it has, historically, traded at a high multiple. The following chart shows that Costco's median P/E has gradually increased over time, with the three-year median higher than the five-year median -- and so forth.

But Costco's current P/E is reaching nosebleed levels , especially because Costco isn't growing as fast as it used to.

Cheery consensus

Costco is arguably the best-run value-orientated retailer on the planet. But the stock is expensive, it doesn't pay a high ordinary dividend (although it does occasionally pay special dividends ), it doesn't buy back a lot of its own stock, and it isn't growing that quickly anymore.

One of my favorite Warren Buffett quotes is "You pay a very high price in the stock market for a cheery consensus." Which basically means if there's widespread agreement that a company is great, then the stock will not be cheap.

Costco takes cheery consensus to an extreme level, and it is a good example of why a great business is not always worth investing in.

Nvidia showcases why a company that is expensive now can grow into a more reasonable valuation over time if it is growing earnings at a breakneck rate. But Costco isn't doing that, so it doesn't have a clear path toward reaching a fair valuation unless the stock price comes down. Even a return to a 35 P/E would mean nearly a 30% decline in the stock price.

It's a tough one to pass on, but Costco is just too expensive to consider now.

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The $5 McDonald's meal is making a grand comeback in June — but only for a month

• McDonald's plans to launch a limited-time $5 meal.
• In first-quarter earnings, the company's leadership highlighted how inflation has affected customers.
• Other fast food chains are also worried about affordability.

McDonald's is looking to launch a $5 meal in the US in a move to bring back price-sensitive customers .

The meal includes four items, people familiar with the matter told Bloomberg and Restaurant Business . Customers would choose between two of the chain's signature burgers — a McChicken or a McDouble — and get four-piece McNuggets, fries , and a drink. The $5 promotion would last for a month, Bloomberg reported.

The deal will start on June 25, The Wall Street Journal and other outlets reported.

The discussions about the new deal come three weeks after the fast food giant's first-quarter earnings call, where leadership highlighted how customers are increasingly price-sensitive.

"I think affordability is clearly an area where consumer expectations are heightened," McDonald's chief financial officer Ian Borden said on the call. "Obviously, they're getting hit ," by inflation, he added.

The company previewed a value meal on the earnings call without any specifics. CEO Chris Kempczinski said McDonald's has local value meals around the US, but no standard national offering like competitors do.

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A $5 meal would be a stark drop from current prices, especially in higher-cost cities, according to a Business Insider analysis.

A meal consisting of the same four items — a McChicken, fries, a drink, and four-piece chicken nuggets — costs $18.26 in downtown New York City. In downtown San Francisco, the McChicken version costs $16.15, and the burger variant costs $17.75.

The new bundle would be priced lower than a Happy Meal, which starts at $6.39 in downtown Manhattan.

The company's stock has fallen about 7% year-to-date as investors worry about rising costs and intensifying fast-food competition.

Fast-food chains across the US are grappling with fewer orders from customers who no longer find their meals affordable. Wendy's, Shake Shack , Starbucks and Burger King parent Restaurant Brands International have all said in their latest earnings call that they will exercise caution on prices.

"We're going to stay careful on pricing," Gunther Plosch, Wendy's CFO, said in its earnings call earlier this month. "I don't think we're going to get too greedy."

Fast-food giants have also been hit by California's new minimum $20 hourly wage for limited-service restaurants. Franchisees that have raised prices are worried they may lose customers to sit-in dining chains like Chili's and Applebee's , which are not subject to the wage hike.

McDonald's did not respond to an immediate request for comment sent outside standard business hours.

Watch: US vs India McDonald's | Food Wars

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