what is value proposition in business plan

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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.

About the Author

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

Published: August 06, 2024

Your company’s competitive advantage lives or dies by its value proposition. If you can’t clearly distinguish your product or service from your competitors — and then deliver on your brand promise — why should customers choose you ?

The stakes are high, but writing a great value proposition shouldn’t strike fear into your heart. (And if it does — deep breath. We’ll get through this together.)

In this article, we’ll define what a value proposition is, and just as importantly, what it isn't . We’ll also break down examples from seven well-known brands.

I’ve also talked to a handful of marketing experts to bring you tactics and tips for creating value props that will help you lift sales, boost conversion rates , connect and engage with customers, and solve world peace. (Just kidding on that last one. But a good value proposition does address a lot of marketing problems.)

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

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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, 4 methods to build great value propositions, value proposition templates, value proposition canvas examples, value proposition examples, what makes a good value proposition.

• 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.

A value proposition, sometimes called a brand proposition or core proposition, might be the difference between losing a sale and closing it. In other words: A great value prop is an essential conversion factor.

For that reason, it‘s important to create one that accurately represents your products and services, distinguishes you from competitors, and makes it clear why you’re the best choice.

Let us help you make this process easier: Download our templates below and follow along with the rest of the post.

Your value proposition is yours — it distinguishes your business from your competitors, and it clearly communicates that to customers.

Without it, buyers won't have a reason to purchase what you sell. They may even choose a competitor simply because its marketing campaigns and sales processes have a clearer value proposition.

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

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?

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

Value Proposition Canvas

35 Vision And Mission Statement Examples That Will Inspire Your Buyers

31 Companies With Really Catchy Slogans & Brand Taglines

22 Famous Brand Slogans (And the Little-Known Stories Behind Them) [Infographic]

What Makes a Slogan Successful? [Infographic]

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Before & After: 11 Brands That Gave Their Slogans a Makeover

10 Cliché Marketing Taglines We Should All Stop Using

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

Marketing software that helps you drive revenue, save time and resources, and measure and optimize your investments — all on one easy-to-use platform

Value Proposition

A promise of value by a company that summarizes how the benefit of the company’s product or service will be delivered, experienced, and acquired

What is a Value Proposition?

A value proposition is a promise of value stated by a company that summarizes how the benefit of the company’s product or service will be delivered, experienced, and acquired. Essentially, a value proposition specifies what makes the company’s product or service attractive, why a customer should purchase it, and how the value of the product or service is differentiated from similar offerings.

Generally, the value proposition is addressed to the company’s target customers or target market segment . The proposition takes the form of a short, clear, and concise statement of the tangible and intangible benefits that will be delivered to customers. The perfect proposition must quickly transmit the values to potential customers without the need for further explanation. Each proposition must be unique, as it is a method to communicate the differentiation points of a company to the target customers .

The value proposition must not be confused with slogans and catchphrases , as the latter two may not clearly convey the benefits of a company and its products.

Importance of a Value Proposition

The development of a value proposition is a vital part of a company’s business strategy . Since the proposition provides a company with a method to influence the decision-making of customers, it is frequently displayed on the company’s marketing materials, such as a website.

The value proposition is a powerful tool to drive sales and build a customer base. Additionally, a perfect and compelling value proposition can advance the effectiveness of the company’s marketing strategies . Generally, it is regarded as the most effective and wide-reaching marketing activity.

How to Create a Value Proposition

As we’ve already determined, the perfectly tailored value proposition can become a huge success factor for a company. However, the creation of a powerful proposition is a challenging yet rewarding task for every business. Below, we have listed some tips that will help you to create an effective one:

1. Know your customers

Before creating your value proposition, you must analyze the market and potential customers. Identify your target customers and target market segment to understand their desired benefits.

2. Understand your costs and benefits

Identify and assess the benefits delivered by your company and its products or services, along with the costs incurred to provide them. It is important to do this because the value to your customers is essentially the difference between the benefits and costs of your product or service.

3. Don’t forget about your competitors

After the analysis of target customers and your own company, evaluate the competitive landscape in the market. Determine the strengths and weaknesses of your major competitors and identify ways you can differentiate your business from them.

4. Be clear and concise

Don’t forget that an effective value proposition is clear and concise. Your target customers must quickly grasp the message you want to convey. It should not exceed two or three sentences.

5. Design is king!

Make your proposition visible and appealing on all marketing materials (e.g., website). Remember that if you have created a powerful value proposition, but no one can see it, the effect of the proposition will be zero!

More Resources

Thank you for reading CFI’s guide to Value Proposition. To keep learning and advancing your career, the following CFI resources will be helpful:

• 5 P’s of Marketing
• Brand Equity
• Push Marketing Strategy
• Market Orientation
• See all management & strategy resources

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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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What is a value proposition? Definition + examples

Business & tech.

Why do people buy your product? It should be obvious, right? If you sell groceries, people buy them because they’re planning their next meals. If you sell books, people buy them because they want something to read. If you sell B2B software, customers buy to improve their business processes.

In reality, it’s not that simple. People who are hungry could go to the grocery store, or they could order take-out. People looking for a new book could go to your bookstore, or they could go to a library. Companies looking to improve processes could buy software, or hire a specialist.

Your company, product, customer, and price point all contribute to your value proposition. Your value prop details the exact usefulness that your product provides. It is also your differentiator.

Value proposition definition

Value proposition is a promise of value stated by a company that summarizes how the benefit of the company’s product or service will be delivered, experienced, and acquired. (Corporate Finance Institute)

A value proposition is what you do, and how you do it.

Why is a value proposition important?

A value proposition is crucial for your company’s success. Here’s why.

A value proposition centers your company

Value propositions define exactly what your company should be doing. Oftentimes growing companies can be tempted to pivot or adjust their vision. A value proposition serves as an investment to keep the company focused on the task at hand.

A value proposition explains your company to your customers

At the end of the day, a customer doesn’t care about your marketing spend. They don’t care about how many social media posts you publish, or how many blog posts are on your site. They care about what your product does, and if it serves their needs and meets their expectations. The value proposition is the bridge to your customer having brand awareness .

A unique value proposition sets you apart from your competitors

Your product, value and price point are different from those of your competition. But does your audience know that? Your value proposition allows you to outline what makes your offering unique, and how it disrupts the market .

How to create a value proposition statement

Value proposition statements are best done when developing your business plan. Yet, many CMOs may want to go through value proposition exercises later on, as they refine and improve marketing programs. You can adjust your value prop as your company grows and changes. Use these steps for new and revised value proposition statements.

Identify the features of your product

Start simple: list the products that you offer and their useful features. If you are a software as a service (SaaS) company you may have many features that allow users to do many different tasks. If you are a restaurant, your products may offer breakfast, lunch and dinner. You can include outstanding customer service or special events as your offerings.

Features can be large or small, many or few, original or unoriginal. By listing each feature, you get an idea of exactly what you are offering to your customers.

Identify the benefit of each feature

Features and benefits are often lumped together, but they are distinct. Each feature should provide a benefit. For example, Uber’s app for requesting a carshare is a feature. The driver picking you up and taking you where you need to go is a benefit.

Map each of your features to their customer benefit. By doing this exercise, you’ll start to see which features provide the biggest benefits.

Define your target customer

You’ve likely completed many exercises aimed at understanding your target customers. By clarifying their identity, you’ll better understand their journey to your product.

Dive deep into your customers wants & needs

Sure, your customer might want to buy a new software solution because they need a new software solution. But—what do they really need? Say, you sell financial management software. If your target customer is a finance manager, they might need your solution. Yet, what they really need is to free up some time during their end-of-month close. This will give them the time they need to still have 1-on-1s with team members. They might be searching for a financial solution, but what they are really looking for is time.

Clarify your price point

It takes time and research, but you must understand if your product has a price below, at, or above market rate. This allows you to understand if your product is a value product, a typical product, or a premium product. Your unique value proposition allows customers to understand if they are getting their money’s worth.

Put it all together

Steve Blank (Lean Startup) suggests the following simple phrasing for your value proposition. “We help X do Y by doing Z.”

Mapped to the above framework, this may look more like:

“We help our [TARGET CUSTOMERS] do [CUSTOMER NEEDS] by doing [OUR FEATURES AND BENEFITS].”

If you offer a low-cost or premium product, include your pricing in your value proposition statement well.

Examples of effective value propositions

These seven digital technology companies each offer a unique product, but also face stiff competition. Each of these value props outlines their target customer, their needs, and how they meet them—setting them apart from their competitors.

Calm is a mobile app based in San Francisco.

Value proposition example

Calm helps people who have trouble relaxing sleep, rest, and meditate by providing an app that offers these experiences.

Curology is a custom skin care solution based in San Francisco.

Curology helps people in need of skin care by providing custom skin care products. They also include their competitive pricing and delivery mechanism.

Duolingo is a language-learning app based in Pittsburg.

Duolingo teaches second-language enthusiasts how to speak a new language by providing an app that gamifies language education.

Impossible Foods

Impossible is a meat-alternative company based in Redwood City, CA.

Impossible Foods provides an option for health-and-environmentally-conscious consumers to eat sustainably, by offering a meat product alternative.

Slack is collaboration software based in San Francisco.

Slack provides busy professionals a way to avoid using email, by offering a more comprehensive and easy-to-use collaboration and communication tool.

Zendesk is a customer support SaaS based in San Francisco.

Zendesk provides customer service professionals a way to manage their operations with a comprehensive software solution.

Setting your value proposition is an exercise that helps everyone. It aligns your internal focuses and it better communicates your company to customers.

TAYLOR COTTER

Taylor Cotter is a content marketer and social media strategist who has worked with leading B2B software companies to increase their reach and exceed their customer acquisition goals. Taylor is passionate about marketing that sits at the intersection of creativity and functionality. You can learn more about her at taylorcotter.com or connect with her on LinkedIn .

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Value Proposition

• Written By Britt Skrabanek
• Updated: August 26, 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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Unique Value Proposition: What It Is, Why It’s Important, How to Create a UVP, and 10 Examples

Discover your brand's unique character. Reveal the truth with our free quiz!

Millions of businesses compete for attention. You can’t build a successful business if you don’t stand out.

Creating and articulating your unique value proposition is the best way to stand out .

What is a UVP (unique value proposition)?

A unique value proposition (UVP), or unique selling proposition (USP), is a short statement telling your customers and target audience how your company differentiates from competitors and why they should choose your product or service.

Over the past 15 years, we’ve helped thousands of entrepreneurs and business owners create unique value propositions. And we’ve partnered with leading tech accelerators, incubators, and business organizations to show how to build a UVP from scratch.

This guide shares our insights, tips, and best practices for creating a unique value proposition for your company. We also share ten examples of effective UVPs you can use as a guide to creating your own.

Unique Value Proposition: The Ultimate Guide

Why is a unique value proposition important? How to create your unique value proposition Ten examples of unique value propositions

Why is a unique value proposition important?

A unique value proposition is vital to increasing conversions . A strong value proposition is essential to effective branding , helps you differentiate from competitors , and could help you grow your business faster. A weak value proposition will hold your business back.

Customers have many choices. Your UVP should be why someone chooses your business over your competitors.

Your unique value proposition is not your mission statement or tagline

Your mission statement reflects the overall goals of your organization. Your unique value proposition should be product or service-oriented, while the mission statement should be goal-oriented.

A tagline or slogan is a short statement representing a concept for which your business stands. Your tagline is often an essential part of your company’s brand identity . Your UVP is too, but they are not the same.

Here are examples from Nike that illustrate the differences between your mission statement, tagline, and unique value proposition:

Unique Value Proposition : Nike products inspire anyone to become an athlete. Their products rely on quality, innovation, and the status of the Nike brand .

Tagline : “Just Do It.”

Mission Statement: “Our mission is what drives us to do everything possible to expand human potential. We do that by creating groundbreaking sports innovations, by making our products more sustainably, by building a creative and diverse global team, and by making a positive impact in communities where we live and work”.

How to create your unique value proposition

A strong UVP shows that you understand your target audience and the specific problem this audience wants to solve.

It’s essential to get this right when starting a business . And if you have an established business but struggle to articulate your UVP, you must step back and reassess how to create a stronger value proposition.

Look at how these two cookie companies use UVP to speak to different audiences and problems:

Insomnia Cookies:  Warm cookies delivered daily until 3 am.

Sugarwish:  Send freshly baked cookies. You choose the gift size, and they get to pick their favorites from 25 flavors.

Both companies sell cookies, but each highlights their unique differences based on their target customer.

Insomnia Cookies is popular on college campuses where students stay up late and appreciate getting a sweet treat delivered while studying.

The target audience for Sugarwish is sales professionals who want an easy gifting experience for prospective customers.

Know your audience

Your  target audience is the people most likely to be interested in your company’s products or services. Identify as many characteristics about your audience as possible.

• Demographics (age, location, gender, income, job title)
• Interests (what causes do they care about, what do they do after work)
• Technology (are they competent with technology, are they early adopters)
• Influencers (where do they get insights and entertainment)

For example, CBInsights is a market intelligence platform that analyzes data points on venture capital, startups, patents, partnerships , and tech news. When the platform was launched, Anand Sanwal, the founder of CBInsights, made a critical pricing mistake by not understanding his target audience. He realized this when a customer told him to add a zero to the price of his service. The customer loved the solution but said if he took CBInsight’s product to his client, they wouldn’t take him seriously, given the low price. The client expected a high price to solve a significant problem.

Know the problem

Once you’ve identified your target audience, you must understand the problem you’re trying to solve.

The problem needs to be specific. The data CBInsights aggregates and provides company executives can help increase revenues. But “increasing revenue” is not a particular problem. Instead, the problem CBInsight solves is “making technology decisions quickly and confidently.”

A problem might not be obvious.

When you hire a lawn care company, the apparent problem is preventing an overgrown lawn. The less obvious problem is giving customers more time to spend on activities they enjoy instead of yard maintenance.

Perform a competitive analysis

Your business does not operate in a vacuum.

Your audience has many options available to solve their specific problem.

A  competitive analysis looks at your competitor’s strengths and weaknesses to find an opportunity to communicate why people should choose your company.

Amazon and Walmart are both massive retailers with strong UVPs. Amazon operates as “the world’s most customer-centric company,” while Walmart positions itself with “everyday low prices.”

Walmart and Amazon have successfully identified their target customers and the specific problem they can solve.

Draft your unique value proposition

Now that you know how to differentiate your service, it’s time to draft a simple sentence.

Write your value proposition without technical jargon and in a conversational tone. It’s best to include the words your customers use to describe their problem, so your UVP is familiar.

Keep the statement focused on a singular solution your audience finds valuable. This will help you stand out from competitors who try to appeal to multiple benefits.

For example, crowdspring’s unique value proposition is “powerfully simple customer design that helps you accelerate revenue and build a brand your customers love.”

Avoid trying to be the solution for everyone. Strong brands naturally alienate some people who are not ideal customers.

Remember, it’s essential to test your value proposition. One of the best ways to test your value proposition is to run an A/B test using multiple statements shown to the same audience at different times. This test will help you see which statement has the most significant impact on your sales.

Ensure that your UVP is prominent on your website and marketing materials. Your target audience should be able to quickly tell why they should buy from your company and not from your competitors.

Ten examples of unique value propositions

These ten examples show how competitors communicate through strong UVPs.

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Masterclass:  Gain new skills in under 10 minutes. Unlimited access to 180+ classes delivered in bite-sized lessons.

Udemy: Learn anything on your schedule.

Udemy offers over 213,000 courses on many different subjects. They are positioned as the affordable solution to learn anything. In contrast, Masterclass offers a limited course selection but a higher-quality learning experience with world-class instructors.

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Starter Story:  Learn how people are starting successful businesses. 4,354 case studies with founders who built their businesses to thousands of customers.

founder:  We educate and inspire today’s founders to become tomorrow’s business icons.

Not everyone wants to be the next Mark Zuckerberg. StarterStory positions itself for people who wish to become successful small business owners without pressure to become a business icon. Founder positions itself for people who want to become the next Mark Zuckerberg.

UNTUCKit:  Shirts that look great untucked

Buttercloth:  The world’s most comfortable shirts.

The problem your brand solves doesn’t have to save the world. These two brands briefly highlight the problems a product can solve.

Online Document Signing

Eversign:  Electronic signatures at work, at home, or on the go. Securely approve, deliver, and sign documents online.

DocuSign:  The way the world agrees. More than a million customers and a billion users trust DocuSign with their critical and essential agreements.

Online document signing does not create a lot of innovations. So how does the underdog, Eversign, differentiate? Eversign highlights the places you can sign that might not be intuitive, such as at home or on the go, which could be an essential point as more people work away from the office.

TrueGreen:  America’s #1 lawn care company.

LawnLove:  Hire a world-class lawn care service in under two minutes. Fully insured with a total satisfaction guarantee and amazing customer support.

The barrier to entry for running a lawn care business is low, with a lot of competition. While many lawn care businesses might want to compete against an established leader on price, LawnLove highlights how easy it will be to interact with their service.

Use the insights, tactics, and framework we share in this article to craft your unique value proposition and grow your business faster.

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What Are the Elements of an Effective Value Proposition?

J.B. Maverick is an active trader, commodity futures broker, and stock market analyst 17+ years of experience, in addition to 10+ years of experience as a finance writer and book editor.

Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University.

In the modern world’s ultra-competitive marketplace, a critical factor in determining the success of a company is how well it identifies, expresses, and communicates a unique value proposition to potential customers. A company’s unique value proposition is a primary marketing tool. A value proposition is a concise statement of the value that the company offers through its goods or services.

The proposition is crafted to communicate the idea that consumers can receive the highest possible value or benefit from purchasing the company’s products—greater value or benefit than they can receive from other companies' products. A company's value proposition is often included in its mission statement .

Key Takeaways

• A value proposition is a statement of the value the company offers through its goods or services that differentiates its value from the competition's.
• A company's value proposition is often included in its mission statement.
• A strong value proposition understands its target market, offers specific value, and connects with its customers.

Having an easily communicated and recognizable value proposition is increasingly important in the modern world where people are bombarded by an overload of information from a variety of media sources and where there are numerous competitors for a company’s business.

Successful firms craft their unique value propositions prior to entering the marketplace and design their business operations in accordance with their value propositions.

Understanding Elements of an Effective Value Proposition

Target market.

There are essentially three elements to a good value proposition. The first involves identifying the company's main target market, the consumer group likely to provide the bulk of the company’s sales.

A business needs to have a clear idea of who its ideal customer is and shape its value proposition to appeal to that customer. A company must identify key demographics , such as age, singles versus families, or income levels, then design its value proposition to speak to that target market.

Specific Value

The second key element of a value proposition is the specific value the company’s products offer. A company must clearly answer for its potential customers the question of why they should choose the company’s products over all other available choices.

Some companies offer value in the form of the lowest price. Others offer the value of the highest quality. Time-saving is another potential value. If a company markets a proprietary technology or product not available from any other source, then that is a unique value it offers consumers.

Customer Connection

The third element of a value proposition covers how a company meets the individual needs or desires of its customers. This element is aimed at appealing to customers' emotions and establishing a relationship that hopefully engenders ongoing brand loyalty.

Some of the most famous brands in the world trade on this sort of goodwill as a primary driver for their business.

Effective Value Proposition Example

As an example of using a well-crafted, unique value proposition, assume a small business in the highly competitive market of film lighting equipment seeks to enter the market with a strategy that enables it to compete with larger, well-established companies.

The company identifies its target market as lighting directors in the film and television industry who are concerned with providing the best possible production lighting. The lighting company distinguishes itself from its larger competitors that carry every possible equipment brand, by carrying only one equipment brand, the brand that research has shown is the industry-consensus best.

The company then goes to market with the slogan, “Do you want to be known for providing the best lighting or the cheapest lighting?” Not only can the company be successful in gaining a large market share, but it can also do so while selling the higher-priced, premium equipment brand.

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How To Write a Value Proposition in 5 Simple Steps

A value proposition is a brief statement that can help your customers understand what sets your business apart (and why they should buy from you).

When someone considers trying a new restaurant or shopping at a new store, they will usually do some research before making the purchase. They might scroll through the company’s website, or ask the business owner some questions about their product.

A perceptive business owner will know that the customer is—knowingly or unknowingly—looking for the business’s unique value proposition, or what sets that company apart (and why should they spend their money there). This value proposition is what can help customers through to the end of the sales funnel and toward making a purchasing decision. 

Sell more with a unique value proposition

Understand your audience, perfect your sales pitch and take your business to the next level, with our free value proposition template.

What is a value proposition? 

A value proposition is a brief statement in which a business explains to potential customers how a business is unique, what it offers to target customers , and how it can improve their lives. Usually, the value proposition is between two to five sentences long. Value propositions are often featured in a business’s website, products, and marketing campaigns. They are a critical part of any business’s brand strategy. 

How to write a value proposition

• Identify a problem 
• Explain how your business can offer a solution
• Explain why your business is unique
• Put it all together
• Edit for clarity

Writing a value proposition might seem like an overwhelming task if you have never created one before. However, by following a few simple steps and highlighting some key points, you can create a compelling value proposition that reinforces your marketing strategy . 

1. Identify a problem

All successful business ideas must address a problem or need of potential customers. This requires you to have a sound understanding of your target audience in order to find and penetrate a market. For example, your potential customers might like Italian food but live in a small town without an Italian restaurant. Such a restaurant could help solve this problem but success depends on researching and understanding which dishes customers want to eat. 

2. Explain how your business can offer a solution

You need to explain the product or service your business is offering and how it is the solution to your customer needs. For example, an online store may sell clothing for less than other retailers, and offer a wider variety of styles that can be easily customized. The solution portion of your value proposition can be around two to three sentences long. 

3. Explain why your business is unique

Most businesses have competitors that offer similar products or services. An Italian restaurant in a small town faces competition from other restaurants with different price points or cuisine offerings. An online clothing store might face competition from another online clothing store with more elaborately designed clothing. It is not enough to just solve a customer’s problem. It helps if a business has a competitive advantage. This could mean that your restaurant serves unique dishes that taste better than food at other restaurants. Or it could mean that your online clothing store has a shipping service that’s much faster than other online clothing stores. Figuring out what makes a business unique is something that business owners must carefully consider. The answer will be different for every successful business. 

4. Put it all together

Once you have identified the problem, the solution your business offers, and how your business differs from competitors, you will have the tools you need to write a successful value proposition. You can start your value proposition by either explaining the problem or explaining the solution your business offers. Either way, the bulk of the value proposition should focus on the solution. Many companies also place a positioning statement directly after the value proposition statement. The positioning statement is a concise explanation of why your business is better than other competitors. 

5. Edit for clarity

Now that you have written the first draft of your value proposition, you should make sure to polish it so that it is as good as it can be. Is there a way to make the sentences flow better? A catchy phrase or slogan you can mention that is unique to your business? Is it clear what goods or services your business is providing? These are all questions that you should ask yourself while adding the final touches to your value proposition. 

3 tips for writing a good value proposition

• Be specific.
• Make a value proposition canvas.
• Ask for feedback from friends, family, and colleagues alike.

You’ll probably go through a few different iterations of your value proposition before you land on one that works for your company. Here are 4 tips for writing a great value proposition. 

• Be specific. A strong value proposition will be unique and not something that could apply to any other business. It helps if you can point to specific ways that your business operates. 
• Make a value proposition canvas . One of the most popular techniques for writing a great value proposition is using a value proposition canvas, which is a type of diagram business owners can draw to help understand where and how their business can add value. This method encourages business owners to think in terms of “gains and pains” that the customer may be experiencing. Businesses using this strategy will focus on ways in which they can make customer jobs easier by alleviating “pain points,” or specific problems a customer is facing. 
• Ask for feedback from friends, family, and colleagues alike. Getting feedback from people you trust is crucial to writing an effective value proposition statement. If possible, it may also be useful to speak with a business consultant or a mentor you trust to get additional feedback on your value proposition. 

Examples of good value propositions

Here are a couple of unique value proposition examples for fictional businesses.

Small Town Italian Restaurant

Small Town Italian Restaurant is the only restaurant of its kind in Springfield, USA. We have a large dining area and offer discounts for larger groups, which makes this the perfect place for affordable meals for the whole family. We are also the only restaurant in Springfield that exclusively uses organic ingredients. Located in the center of town, we are open from 11 a.m. to 11 p.m. every day. We also cater events, making any gathering for business or pleasure worry-free.

Affordable Online Custom Clothing

Do you struggle to find clothes that fit well? Don’t have the budget for a tailor? At Affordable Online Custom Clothes, we customize our clothes to match your personal measurements so you’ll never have a bad fit again. Unlike our competitors, we buy the best fabrics in bulk. That means we can offer low prices that you won’t find elsewhere.

Important Reminders App

Are you missing important appointments and meetings, even though you have a calendar app on your smartphone? That’s because these apps only operate in the background of the home screen. The Important Reminders App not only sends you reminders, but stays open on the home screen of your smartphone at all times, allowing you to see the day’s events without ever clicking on the app—keeping you on task and on time.

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How to write a value proposition FAQ

What are the elements of a value proposition.

A value proposition explains what product or service your business offers and how future customers stand to benefit from your product or service.

What is a real example of a value proposition?

Shopify has a value proposition on its homepage framed as the question, “What is Shopify and how does it work?” In response, Shopify offers the following value proposition:

“Shopify is a complete commerce platform that lets you start, grow, and manage a business. 

With Shopify, you can:

• Create and customize an online store
• Sell in multiple places, including web, mobile, social media, online marketplaces, brick-and-mortar locations, and pop-up shops
• Manage products, inventory, payments, and shipping

Shopify is completely cloud-based and -hosted, which means you don’t have to worry about upgrading or maintaining software or web servers. This gives you the flexibility to access and run your business from almost anywhere, including your mobile device.” 

What makes a good value proposition?

A good value proposition is unique and easy to understand. It should explain what your business does to someone who has never heard of it before, and entice prospective customers to purchase your product or service.

How long should a value proposition be?

Most value propositions are between two to five sentences. Some may be longer or shorter, depending on context.

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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.

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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8 Powerful Value Proposition Examples (& How To Write Yours)

Are you looking for value proposition examples to help you create your own compelling message?

Your value proposition is what gets your potential customers and clients to take notice.

It’s your brand’s first impression.

And it’s critical to nail this message if you want to successfully market and sell your products or services.

Before we get into the 8 value proposition examples, let’s cover the basics.

What is a value proposition?

A value proposition is a short statement that explains who you work with and the value you provide to them.

It is NOT a guarantee or a contract.

It is a marketing message that gets your ideal clients to take notice and wonder “how do they do that?”

Our Version Of The Value Proposition: Magnetic Messaging

Inside of our Clarity Coaching Framework , we teach Magnetic Messaging. It’s the consultant’s version of the value proposition.

Here’s the formula:

I help [WHO] to [solve WHAT problem] so they can [see WHAT results]. My [WHY choose me]…

Let’s break each part of the formula down.

• WHO : Who you serve.
• WHAT (Problem) : What problem you solve for them.
• WHAT (Result) : What result you create for them.
• WHY : Why they should choose you.

This formula is so effective because it covers everything your prospective clients want to know before they take a deeper look at you and your business.

When done right, it will attract potential clients like a magnet. It’s one of the most important elements of any consultant’s website .

Now, let’s dive into the examples.

NOTE: The list below is in no particular order.

Six-Figure Blueprint

1. female forward.

Value Proposition

Helping Brands Grow With Women: We help CPG brands sell more effectively to women and achieve a 300% ROI by positioning your brand to appeal to women.

• WHO : Consumer packaged goods brands.
• WHAT (Problem) : Sell more effectively to women.
• WHAT (Result) : Achieve a 300% ROI.
• WHY : 20 years of experience leading brand-building strategy and activation across a range of categories and business models.

Why It Works

Women drive 70-80% of consumer purchasing decisions. Making your brand more appealing to women has a huge payoff. Amanda, who has decades of experience doing just that, has tied all of these facts together into a clear and compelling value proposition. You can imagine that if you were running a CPG brand and you read this message, you’d be intrigued. And that’s the job of your value proposition: to make your target market interested and want to learn more.

Here’s what the President of Female Forward, Amanda Hill, has to say about the power of specificity in your value proposition:

That leads to the second thing, which is when you understand your consumer, you develop a strategy or choices to win with them. Oftentimes, what I see in smaller companies is they think they’ve got to be all things to all people and they have to do everything. The fact is in a smaller company, you have less resources so you have even more choices. You have to do the opposite.

In order to inform those priorities or choices, you have to understand your target audience. That target audience understanding is what helps shine a light on what are the most critical areas you should invest in or what type of communication you should have for your business. They’re related to me but I think those tenets are true no matter if you’re a one-person show or a one-woman show like I am or whether you are a billion-dollar business is understanding your target audience and using that insight to set priorities or choices for your investments.

(Learn more about Amanda’s business: Leaving a Multi-Billion Dollar Company to Start a Consulting Business with Amanda Hill )

2. How To SaaS

Build an automated demand generation engine: We help SaaS companies build a high-performance marketing system to drive top-line revenue growth and enterprise value. We’ve helped scale marketing for companies of all sizes, from $5M in ARR to upwards of $300M.

• WHO : SaaS (Software as a service) companies
• WHAT (Problem) : Build a high-performance marketing system.
• WHAT (Result) : Drive top-line revenue growth and enterprise value.
• WHY : Have helped scale marketing for companies of all sizes.

SaaS companies want to grow. Many SaaS companies have underutilized marketing as a channel for growth. That’s where How to SaaS comes in. By helping SaaS companies scale up their marketing, they help them drive revenue growth and the overall value of the business. Since many SaaS companies eventually look to sell, every word of How to SaaS’s value proposition is incredibly compelling.

Here’s what the founder of How to SaaS, Shiv Narayanan, has to say about his firm’s value proposition:

It comes down to building a differentiated position. We are a marketing strategy consulting firm, specifically for B2B companies. We work with high-level investors that are buying and selling companies for hundreds of millions of dollars.

There are plenty of marketing agencies out there that can, for example, set up your Google Ads for you. If that’s the work that we try to chase, then we’re going to be playing in a commoditized market. The way to win is by lowering your price. As a consultant, that’s the last place you want to be. You don’t want to compete on price. You want to compete on value, and then the price is no longer a factor because you want to be operating in high margins. By starting there, we set ourselves up for success.

(Learn more about Shiv’s business: Generating $2M in Consulting Revenue in 18 Months with Shiv Narayanan )

3. Build Up Advisory Group

We help brave philanthropies and nonprofits scale their impact by strengthening their grant making and organizational structuring.

• WHO : Brave philanthropies and non-profits.
• WHAT (Problem): Strengthening their grantmaking and organizational structuring.
• WHAT (Result): Scale their impact.
• WHY : For 15 years, Nic, our founder and CEO, has produced similar results for several international, multi-billion-dollar philanthropies and nonprofits.

Philanthropies and nonprofits struggle with aspects of their organizations just like businesses do. And if you can help them solve those problems, many of them have budgets to hire nonprofit consultants to help . Build Up Advisory group targets these non-profits, and as a result, has developed into a successful non-profit consulting business.

Here’s what the founder and CEO of Build Up Advisory Group, A Nicole Campbell , has to say about creating a value proposition that speaks to non-profits:

You have to be clear on the kinds of nonprofits that you’re working with, because that category of nonprofits is big category of organizations. There are lots of different types of nonprofit organizations. There are hospitals that are nonprofit organizations, and they are multibillion-dollar enterprises. There are the local place-based non-profits that may have a budget of $5,000 for the organization. You have to be clear on the kinds of non-profits that you want to work with, and then the value that you want to offer to them or that you can offer to them.

A nonprofit is like any other organization in that if you offer them something of value, they’re able to then say, “Here’s the investment that we’re willing to make in order to receive that value.” I’ve been able to work very closely with nonprofit organizations. I’ve worked almost primarily with grantmaking organizations. I’m clear on the value that I can provide to those organizations. Getting clear on what are their needs and what’s the value that you can provide to them will help you clarify, “These are the nonprofit organizations that I’ll be able to work with.

(Learn more about Nic’s business: How To Price High-Value Consulting Services with A. Nicole Campbell )

4. Software Pricing Partners

Software Pricing Partners helps you develop innovative pricing strategies that delight customers and derange competitors while minimizing risk at every stage of the pricing process.

• WHO : Software companies.
• WHAT (Problem) : Developing pricing strategies.
• WHAT (Result) : Delight competitors and derange competitors.
• WHY : Minimizes risk at every stage.

Pricing software is notoriously difficult . Software Pricing Partners not only helps software companies solve this challenge but generate more revenue as a result. With a crystal clear target market (software companies) and by solving a problem the market wants to solve (pricing), this is a powerful value proposition. The consulting firm’s name even implies the value proposition, a fantastic branding and positioning strategy:

Here’s what Chris Mele, Managing Partner of Software Pricing Partners, has to say about their value proposition:

We don’t try to do everything. We beat all of the name-brand firms, not all the time, but we have a nice hit rate with going toe to toe with 2,000, 3,000, 5,000 person consultancies. Why? It’s because of that singular focus. We didn’t water down with all this other stuff. You’ll never hear us on the phone mixing and matching and saying, “We’re going to do a willingness to pay survey. No, that’s a B2C. We’re going to do a conjoint analysis. We do B2B.”

“When you peg that stake in the ground and you have those marching orders, it gets rid of all those superfluous noises on the perimeter. Your message that you deliver to the customers that you want to attract, the ones that you’ve chosen to focus on is light years ahead of the watered-down competitors.

(Learn more about Chris’ business: How to Charge What You’re Worth with Chris Mele )

5. Mark Treichel

Helping credit union CEOs achieve the best possible examination results so they save time and money.

• WHO : Credit Union CEOs.
• WHAT (Problem) : Achieve the best examination results.
• WHAT (Result) : So they save time and money.
• WHY : “He knows how NCUA thinks and why they think it. He knows the examination process inside and out. He knows how to communicate and negotiate with NCUA. He knows how to get NCUA to YES instead of NO.”

With a clear ideal client, problem that you solve, result that you create, and point of differentiation, marketing and sales become much easier. Mark Treichel’s value proposition is the perfect example. It’s simple, clear, and leaves no room for ambiguity — and he’s got the experience to back it up. AIm for this level of clarity with your value proposition, and it will serve you well.

Here’s what Mark has to say about using his value proposition to market and sell his consulting services:

We jumped into it with imperfect action. I learned at NCUA, your line is imperfect action. The one from my quote list is, “Don’t let the perfect be the enemy of the good.” When you said it, I was like, “I’ve lived that.” I got out there. I started communicating with some emails and with some posts on LinkedIn. Immediately, I started getting conversations and those conversations started off. I’ve never been in sales. I guess I’ve been a salesman selling ideas to the NCUA board or to my staff but never where I felt like I was selling myself. I had to get used to that. The conversations got easier and the clients started coming in.

You said, “Once you identify that perfect client, they have to know you exist. If they don’t know you exist, they’re not going to hire you.” That was like a lightning bolt. I got to get out there. When I used to have to do speeches, I would try and boil complex things down into simple short messages.

(Learn more about Mark’s business: Consulting on Wheels: Building a Consulting Business from an RV )

6. GrowthHit

Your External Growth Team: We grow sales by running data-driven growth experiments for Shopify, eCommerce, SaaS, & lead generation companies.

• WHO : Shopify, eCommerce, SaaS, & lead-generation companies.
• WHAT (Problem) : Growth experiments and marketing.
• WHAT (Result) : Grow sales.
• WHY : We’ve worked with or taught over 125 companies. We have helped startups raise over $40M in funding and helped companies generate over $247M in revenue from tracked experiments.

If you’re marketing consulting or sales consulting, your clients care about one thing above all else: results. That’s what GrowthHit’s value proposition is built on: they can get you results — and they can prove it with the data. Although their WHO includes multiple market verticals, it still works due to the power of the problem they solve, the results they create, and their why, which differentiates them from many other marketing consulting firms.

Here’s what Jim says to consultants who want to use their value propositions strategically in their marketing and sales process.

If you can pinpoint your persona, I would want to try and get an exact customer list of who are the heads of marketing, and the CEOs. I would start doing pre ads to them. I would then do a cold email outreach strategy and because cold email is super annoying, I would make it benefit-focused. We’ll do a free audit, teardown, or whatever that is.

The other thing is I would also be looking at what tools are they using, what newsletters do they subscribe to, and who are the thought leaders? How can I attach myself to them so I can do a webinar or do some content series with them? That would be something I would be doing if I’m a consulting firm.

(Learn more about Jim’s business: The Consultant’s Guide to Growth Marketing with Jim Huffman )

7. TIG Brands

We are focused on helping natural product brands grow. We position them to raise capital, prove their growth hypothesis, build community, and scale.

• WHO : Natural Product Brands.
• WHAT (Problem) : Growth.
• WHAT (Result) : Raise capital, prove their growth hypothesis, build community, and scale.
• WHY : “Our brands come to us with products that are innovative and disruptive. They have great stories to tell and a passion for what they do. They’re committed to the triple-bottom-line, doing what is best for people, planet, and profits.”

If there’s one thing to take away from this post, it’s this: specificity is key for your value proposition. Many consultancies help brands with growth. But not many consultancies help natural product brands with growth. That’s the power of specificity. It lowers your amount of competition, helps you cut through the noise, and enables you to market and sell your services from a position of abundance.

Here’s what Elliot Begoun, principal of TIG Brands, has to say about how he developed his firm’s value proposition:

You could almost look at it in stages of evolution. The first was getting clarity of what I wanted my business to be and understanding what it is that one, I solve for my clients, and two, what it is that I really wanted to do and found enjoyment in.

The other was not getting too diluted. Once you started the activity of being in this business, there are opportunities. You can take a lot of different forks in the road. I did it at first and I see a lot of people do the same thing where they try to take as many of those roads at the same time. At the end of the day, you just wind up diluted and less effective. Once I narrowed that down and got concentrated on the things I did well and the things I enjoyed doing the most, that allowed the scale to happen.

(Learn more about Elliot’s business: Elliot Begoun and The Power of Betting on Yourself )

8. The Point Of Loyalty

Value Proposition:

Retain the Best, Grow The Rest: The Point of Loyalty is a strategic customer loyalty consultancy dedicated to driving deeper relationships and profitable revenue growth from the abundance of existing customers, with thriving customer loyalty assets.

• WHO : Brands who believe in the essence of their existing customers.
• WHAT (Problem) : Customer loyalty.
• WHAT (Result) : Deeper relationships and profitable revenue growth.
• WHY : “Adam has designed and deployed customer loyalty, reward and membership program strategies and member research for organisations operating in diverse sectors. These include retail (various), hospitality, hotels & holiday parks, financial services, shopping centres, leisure and entertainment, trade and education.”

At the heart of your value proposition is your expertise or specialty — what you can do better than your competitors. Instead of going after a particular vertical market (a particular industry), The Point Of Loyalty focuses on a horizontal market: a broad, diversified demographic of companies. Their specialty, customer loyalty programs, appeals to this wider client base. However, they’re only able to make it work based on their specialization on solving the problem of improving customer loyalty.

Here’s what Adam Posner, CEO and Founder, has to say about how his specialization in customer loyalty plays into his firm’s value proposition:

I’ve got a process and a strategy and fundamentally it’s built off what I call bespoke research. All roads lead to my research. I’ve got ten studies that I’ve published and I built a brand around that and every year I do it. It is a big investment back to your earlier comments, lots of work, lots of money, time, and efforts, but it has a long tail of content. I can use it for another twelve months. It’s is a point of conversation with clients outside of selling my services. They were interested in the research and my perspective of the landscape. The study, which is called For Love or Money is my lead magnet, should I say, but also my learning opportunities.

I’m forever learning. People say, “You’re an expert or whatever.” I dislike the word expert because everyone’s an expert but I’m a specialist. I keep learning. I never positioned myself as an expert. It’s all about being a specialist and these studies help me learn but also provide learnings and insights to the community.

(Learn more about Adam’s business: How Consultants Can Build A Customer Loyalty Program with Adam Posner )

Imperfect Action: Write Your Value Proposition

Now it’s time to write your value proposition.

Again, if you are a freelancer , service provider, advisor, or consultant, use our Magnetic Messaging formula.

You won’t make it perfect on your first try. That’s OK!

Just use the formula to get something on paper, and start publishing it in your marketing materials.

Gather feedback from the marketplace. Use the feedback iterative and improve your message.

Over weeks, months, and years of improvement, you’ll have a value proposition that is simple, clear, and helps you to start conversations with potential clients.

And if you’d like our help to create your perfect value proposition, reach out today .

3 thoughts on “ 8 Powerful Value Proposition Examples (& How To Write Yours) ”

Hi Michael, Thanks for all of the great tips and insights about putting together a value statement, or as you put it a “magnetic messaging”. I’d never heard that expression, but I quite like it. I also like your formula. Its a bit different from other formulas I’ve seen before. That “why they should choose you” is a nice addition/tweak. Also, your perspective on taking imperfect action is so important. I know I’ve gotten stuck trying to optimize and perfect things too soon. thanks again

You’re very welcome and glad to have you in the community here Marcio!

Great examples of value propositions! They clearly show how a strong value statement can differentiate your business and communicate what makes your services unique.

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How to create a successful value proposition.

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When buyer needs and seller solutions are in perfect alignment, magic happens. But getting there requires navigating a path of clear communication, accurate perception and the fulfillment of a brand promise. And the best way to get started is by crafting a good value proposition.

Unfortunately, one thing I’ve learned in my quarter-century sales career is that too many organizations either lack a value proposition completely or confuse it with their unique selling proposition.

That’s too bad because a “value proposition” is an essential baseline promise to your customer -- a clear and simple expression of benefits a consumer can expect to receive when buying your product or service. But even though your ultimate value proposition statement might be simple, it must be built with consideration of many elements.

What makes a 'good' value proposition?

While both the unique value proposition and the unique selling proposition should be tools in every sales professional’s toolbelt, they are not the same thing.

The selling proposition is all about your company and how you differ from (or are superior to) your competitors. In other words, the unique selling proposition expresses what makes your company stand out in a way that should matter to potential customers.

A value proposition, on the other hand, is all about the customer. It outlines the benefits they will receive when buying your product or service. A good value proposition is about making the connection between customer needs and the seller’s solutions. Value, proven by tangible benefits, can only truly exist if there is a direct alignment between these needs and solutions.

A good value proposition should be more than merely a proposition; it should, in fact, be a brand promise. Your value proposition should assure the buyer that, in exchange for their investment, your company’s solution promises to provide clear benefits (and value).

Simply put: A good value proposition answers for the buyer — with absolute clarity — “What’s in it for me?” Below are three steps to get started creating your own:

1. Outline the return on investment for your customer.

The measure of benefits, of course, is demonstrated in a buyer’s return on investment, or return on investment (ROI). While a broad-based value proposition cannot put into words a specifically quantified ROI that applies to each potential customer, the value proposition can — and should — make it clear how your buyer will benefit financially from their spend.

For example, you might simply state the direct positive financial gain for the customer (e.g., “With our product, you will earn more,” or “boost your revenue,” etc.). It can also be a statement of reduced cost or cost avoidance, as well something less tangible, such as "peace of mind."

2. Keep things clear and simple.

It is essential that your value proposition is clearly communicated and reinforced. Make sure every reference to the value proposition states your product’s benefits and your brand’s promise with unmistakable clarity. One way to make sure your value proposition is clear is to look -- and eradicate -- jargon. Even though your customers might speak the same industry language you do, jargon can come across as overly formal or even as trying too hard to impress. On the other hand, avoid being too general, too obvious or trite. When in doubt, share your value proposition with trusted professionals from outside your industry. If they are puzzled by your brand promise, try again.

Simplicity is another good measure of clarity. The simpler your value proposition, the better (as long as it clearly conveys the beneficial value for the buyer, that is). Shoot for a value proposition of 20 words or less. Think about the clarity of each word, too. If they seem stiff, stilted or overly “academic,” find simpler, more conversational alternatives. Ultimately, your value proposition should never raise more questions than it answers.

3. Consider your customer's perception.

A good value proposition also depends on the customer’s perception. If the customer doesn’t understand or recognize the value of working with your company -- even if the numbers prove substantial ROI, then your value proposition has fallen short. Perception is reality, and this often comes down to the full customer experience throughout the process of buying and using the products or services sold.

To learn customer perceptions about your value proposition, ask them. You can do this as part of a simple survey or anecdotally during the customer engagement experience. You can also ask former customers or unconverted prospects how they perceive the value of your product or service. If they chose not to buy from you, or to stop buying from you, you’ll want to know why. It might come down to the fact that they did not perceive enough value in your solution compared to a competitor.

Putting It Together

To apply the above concepts when crafting a compelling value proposition, try filling in the blanks in the template below:

• "For [description of customer] who [statement of need or problem], we deliver [solution and statement of benefit]."

If you are a commercial builder, for example, your value proposition might look like this: “We deliver more square feet for less money.” You've likely seen these concepts displayed in everyday brands. For example, Uber says it is "the smartest way to get around." Or Slack is "where work happens."

Above all, a good value proposition benefits both the buyer and the seller. The buyer perceives (based on their user experience and available metrics) that the brand promise has been delivered and their ROI is favorable. And the seller perceives that the sale — in the context of the customer relationship and necessary account management — is profitable and worth the effort.

If your sales team can consistently communicate and deliver on the brand promise embodied in your value proposition, I believe your sales team could be able to minimize customer objections and maximize sales. That sounds like a good start for your sales team’s value proposition, doesn’t it?

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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.

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

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

"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. 

"[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.

"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

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?

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.

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

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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.

• Sales & business development

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Value Proposition

A value proposition defines the benefits your company’s products and services offer to the customer. This short statement, based on your Business Concept Statement, should express the essence of your business in a way that compels the customer to buy.

It’s important to expend the necessary time and effort to craft a compelling value proposition since it will form the basis for all your sales, marketing, and product development efforts. The value proposition is also part of your Business Plan.

A value proposition is a valuable tool to guide your marketing efforts. Here are some benefits that you will receive by having a clear, compelling value proposition:

• Create a strong differentiation between you and your competitors.
• Increase not only the quantity but also the quality of prospective leads.
• Gain market share in your targeted segments.
• Improve your operation efficiency.
• Increase your revenue.
• Ensure that everyone in your company communicates the same message.

Follow these guidelines to create a value proposition that will compel customers to buy your product or service:

• Use your Business Concept Statement as a starting point for expressing your value proposition.
• Address the needs of your target market. What problems do your target customers need to solve? What’s not working for them? Where do they want to go?
• Emphasize benefits, not features. Don’t explain what the technology does; explain what the buyer will get out of using the technology. Some examples of benefits are greater revenue opportunity, a competitive advantage, reduced costs and expenses, greater convenience, greater Return on Investment (ROI), and better results.
• Use tangible examples. Be as precise and specific as possible. Include numbers, percentages, and time frames.
• Be clear and concise. Condense your message into two sentences.
• Differentiate yourself from the competition. What do you have that no one else has? And-most importantly-how is this an advantage to your customers?

Research and test your value proposition. Ensure that your message strikes the right note with the right people.

© 2007 Ewing Marion Kauffman Foundation. All rights reserved.

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.

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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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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