In this article we will see what is value proposition and how to write good value proposition.
What is 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.
Why do your business need a value proposition?
A good value proposition describes the benefit that a customer will receive from your product or service. It articulates how your solution solves a problem, fills a need, or improves the customer’s situation in some way.
Value propositions also serve as a rallying cry for employees. They provide a clear picture of why customers choose to work with you over your competitors and what differentiates you in the marketplace.
If your website has multiple pages, or if you are targeting different buyer personas, then you will need to address the needs of each group with distinct content and messaging. This is where value propositions shine. A compelling value proposition can act as a unifying theme across multiple marketing channels and collateral pieces while still addressing differences in audience preferences and needs.
Value propositions also help create internal alignment within teams so everyone understands why customers would choose to work with them over competitors. When your entire team is working from the same playbook, it can lead to better results from your marketing efforts.
How to write a value proposition
A value proposition is a promise of value to be delivered. It’s the primary reason a prospect should buy from you.
One of the best ways to build a great value proposition is to use an existing framework. Why reinvent the wheel? These frameworks have been tested, proven and refined by entrepreneurs and startups for years.
Here are three of the most popular frameworks for you to write a value proposition:
1. Pain-Gain Maps
Pain-gain maps are very effective at answering two questions. What job does your customer need done? And, how can you do that job better than anyone else? They help you understand what motivates your customers, so you can position your business as the solution that provides real, lasting value.
The first part of a pain-gain map is asking yourself what your customer wants to achieve with your product or service. This is known as the “job” they want done. Jobs can be physical tasks, such as painting a room, or emotional goals, like being able to run a marathon without stopping. Once you know the answer to this question, you can create an offer that helps them do it better than anyone else.
At its core, a pain-gain map consists of two parts: pains and gains (hence the name). Pains are the negative feelings and problems customers face if they don’t hire you to complete their job (the status quo). Gains are what they achieve when they work with you (your unique offer).
2. Value Proposition Canvas
A value proposition canvas is an exercise that helps teams come up with a strong value proposition. It’s a simple tool to help you get to the core of your product or service and helps you figure out what makes you different than your competitors. Download our Free Value Proposition Canvas.
The canvas helps you explore the different components of the company that contribute to a strong value proposition. You might start by thinking about the competition, then go into the product, services and features of your company, and finally think about how this all fits together in a coherent whole. The goal is to have a model that works for you, as well as one that will help other people understand where your company fits in their market.
Peter Thomson developed his value proposition canvas in 2009 when he was vice president of design at Nike, working on its FuelBand — a wristband that tracks movement and energy levels. He used it to figure out what made Nike different from other fitness bands on the market. He eventually sold the idea to Nike so it could use it internally to help employees better understand what they were doing and why they were making certain design decisions.
3. Jobs to Be Done Theory
The Jobs to Be Done (JTBD) framework is a customer-centric approach that focuses on the job the customer wants to do, rather than the product they are using. It was introduced by Professor Clayton Christensen in his 1997 book, The Innovator’s Dilemma.
The JTBD framework allows you to look at your product or service from your customers’ perspective and understand the job they’re hiring it to do — in other words, why they buy it. A “job” is defined as anything that a person is trying to accomplish. For example, someone might hire a Facebook profile to help them stay in touch with their friends, share updates about their life or build professional relationships.
Jobs have three components:
An outcome — what the customer is trying to achieve
A circumstance — when and where they need the solution
A problem — why existing solutions aren’t working
Remember that value is subjective, and each product manager should spend time exploring many different approaches to their value proposition before settling on the one that’s right for their community. To get started building your own value proposition, Download our Value Proposition Template and get contact with Neu Entity as your Branding Agency partner.
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