A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.

A value proposition needs to very simply answer the question: Why should someone buy what you are offering? If you look closely at this question it contains three components:

§ Who? The value proposition does not name the target buyer, but it must show clear value to the target buyer.

§ What? The offering needs to be defined in the context of that buyer.

§ Why? It must show that the offering is uniquely valuable to the buyer.

Why to Create an Effective Value Proposition

When creating or evaluating a value proposition, it is helpful to step away from the long lists of features and benefits and deep competitive analysis. Stick to the simple, and strive for focus and clarity.

A value proposition should be clear, compelling, and differentiating.

Clear: short and direct; immediately identifies both the offering and the value or benefit

Compelling: conveys the benefit in a way that motivates the buyer to act

Differentiating: sets the offering apart or differentiates it from other offerings

Also, the value proposition is a message, and the audience is the target customer. You want your value proposition to communicate, very succinctly, the promise of unique value in your offering.

Question to Consider: 

1. Define value proposition.

2. What are the building blocks for communicating your value proposition?