How do I write a great value proposition? [+Examples]

Your value proposition is at the core of your competitive advantage. It makes it clear why someone wants to buy from your company rather than a competitor.

It’s also one of the most important conversion factors (learn all about conversion best practices in this free guide). A great value proposition could be the difference between losing a sale and closing it.

So how do you actually write a value proposition that is strong enough to increase conversion rates and sales? In this article, you will learn how to define a value proposition, what a value proposition is not, tactics for creating amazing value propositions, and examples of some of the best value propositions we have ever seen.

Ready to dive in?

What is a value proposition?

A value proposition is the value proposition that a customer can expect from a company. It’s more than just a product or service description – it’s the specific solution your company offers to a customer that a competitor cannot.

Your value proposition is a unique identifier for your company. Without it, buyers have no reason to buy what you sell. You can even patronize a competitor just because that company clearly communicates their value proposition in their marketing materials and sales processes.

While your value propeller should set you apart from the rest of the industry, keep in mind that it is not a tagline, tagline, or mission statement. These types of copies are essential accessories for your brand, but your potential customers and employees won’t choose one company over another based on these elements alone.

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

The elements of a value proposition

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

The elements of a value proposition

headline

The headline of your value proposition describes the benefit that the customer will get by purchasing from your company. The headline can be creative and memorable, but first and foremost it should be clear and concise.

Subheading or paragraph

The subheading or paragraph should explain in detail what your company offers, whom it serves, and why. Use this section to refer to the information in the heading.

Visual element

In some cases, a video, infographic, or picture can convey your value proposition better than words alone. Reinforce your message with these visual elements to grab your audience’s attention.

How do I write a value proposition?

  1. Identify your customer’s main problem.
  2. Identify all the benefits your product offers.
  3. Describe what makes these benefits valuable.
  4. Link this value to your buyer’s problem.
  5. Differentiate yourself as the preferred provider of this value.

Step 1: Identify your client’s main problem.

While this requires some preliminary research, you can get a head start on this aspect of the value proposition by speaking to different members of your team. Customer service reps, marketers, and sales reps can fill in the gaps in the problems your customers are trying to solve by using your product or service.

For example, suppose your company sells tax software on a subscription basis and automated templates are included in the software package. Your ideal customer is looking for an inexpensive, easy-to-use way to access complicated tax documents for their business. In this example, your company’s offerings could be the solution it needs.

Step 2: Identify all the benefits your products offer.

This step can be as simple as listing each product you sell and describing its uses. The benefits should be concise and geared towards a single customer need.

In our tax software example, you would list each tax proposal, explain the benefits it offers, and why a customer would need it.

Step 3: Describe what makes these benefits valuable.

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

Using the same example above, the value would be having customers have affordable tax documents on hand – something that would normally cost them thousands of dollars.

Step 4: Link this value to your buyer’s problem.

Next, connect the buyer’s problem to the elements that make your product or service valuable. Are they aligning? If so, you’re ready to refine your value proposition to help your offerings stand out from the competition. If they don’t match, repeat the steps above until you have a valid buyer need and a workable solution that your company offers to meet that need.

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

Finally, refine your value proposition to make it unique. Is there a particular customer service that your company offers that others don’t? Do you offer additional services that other companies charge for? These elements can help set your value proposition apart from competitors while keeping the focus on the buyer’s needs.

Tactics for Developing an Effective Value Proposition

  1. Do research to determine your competitors’ value proposition.
  2. Explain the value of your products and services.
  3. Describe the benefits that your ideal customer will experience if they choose your product or service over the competition.
  4. Develop a unique value proposition for each buyer persona you serve.
  5. Test your value proposition with your audience through various marketing channels.

1. Conduct research to determine your competitors’ value proposition.

Since your value proposition is the differentiator between your business and the competition, it is important to research your closest competitors’ offerings. You can use the value proposition canvas below to determine how each business is meeting the needs of your buyer personality.

Be honest here – it’s tempting to focus on the areas where your competition doesn’t stand out, but you’ll have a better idea of ​​where your product or service fits in the market if you consider your competitors’ strengths .

2. Explain the value of your products and services.

You are likely familiar with describing the features and benefits of your product and service offerings. This tactic takes this concept one step further. By aligning the benefits of your offerings with the specific values ​​of your customers, you can tailor your company’s offering to meet the needs of your customers.

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

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

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

Ideally, you should target your marketing activities to a specific target group. You will also find that this target group has different needs depending on their purchasing behavior. Buyer Personas can help you divide your larger audience into customer groups with similar desires, goals, weaknesses, and buying behaviors. Hence, you need a unique value proposition for each persona. Different products and services that you offer may solve certain customer problems better than others. Hence, developing a value proposition for each persona will serve everyone better.

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

Each of these tactics are likely to be developed in-house by your team, which means you’ll want to validate your work with your target audience. Your value proposition is communicated through various marketing channels such as your website, social media accounts, video, audio, and in person. Test your offering with members of your audience (both existing and non-customers) through any of these channels. Tools like UserTesting can help you streamline this feedback process so you can implement changes quickly and deliver on your value proposition.

What makes a good value proposition?

Clear language

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

Specific results

Next, you want to communicate the specific results that your customer can expect from your product or service. Will they save you time? Show how. Is your workflow becoming easier to use? View a before and after workflow diagram. The specific results are critical components of your value proposition as they illustrate exactly how your customers will use your solution to solve their problems.

Distinguishing features

Your potential customers not only evaluate your company’s offers based on their own needs, but also compare your offerings with those of the competition. Therefore, your value proposition must contain detailed differentiation points. These key points help customers understand exactly what your business is all about.

Value Proposition Canvas

A value proposition canvas is a visual tool that you can use to align your company’s product or service with the needs of your customers. The goal of the Value Proposition Canvas is to determine how your company is delivering value in the marketplace. You can use the Value Proposition Canvas when launching a new offering or expanding an existing one.

The Value Proposition Canvas consists of two main components: the customer profile and the value map.

Value Proposition Canvas Visual

Customer profile

The customer profile forms the first half of the Value Proposition Canvas. When doing this exercise, it is a good idea to start with this section first so that your wants and needs can influence the overall value proposition.

The customer profile consists of three areas, which we explain in more detail below.

Customer jobs

What task does your customer have to perform or what problem is he trying to solve with your product or service? The answer to this question sums up the “customer order” or the purpose of your product or service in the eyes of the customer.

Profits

No matter what you’re selling, your ideal customer will expect what that product or service will do for them. In this section, you will use research to explain what your customers expect from you in order to buy your product.

pains

What pain do your customers have when they do their “customer job”? Are they taking risks while doing the client’s job? Are you experiencing any negative emotions? These vulnerabilities should be considered so that you include the most helpful products and services on the Value Map page of the Value Proposition Canvas.

Prepaid card

In this section of the Value Proposition Canvas, three specific sectors help describe what the company offers the customer.

Win creators

These are characteristics that your products or services have that make the customer happy. Think creatively about the elements of happiness your customers experience. Take into account their financial and social goals, as well as their psychography.

Painkiller

In the section above, we discussed the customer issues. This section defines exactly how your company can help you overcome these weaknesses.

Products and services

While this section doesn’t list every single product or service your business has, it should include the ones that will bring the most profit and ease the most pain to your customers.

Value Proposition – Identify Customization

After you’ve completed the Value Proposition Canvas exercise, the next step is to determine how your value proposition fits the customer profile. To do this, you use a ranking process that prioritizes products and services based on how well they appeal to the customer profile.

The best examples of value propositions

Because value propositions are usually internal information and are rarely verbatim in public, it can be difficult to find an example value proposition to model your model from. We took the liberty of taking the Value Proposition Canvas and applying it to some successful companies recognized by the American Customer Satisfaction Index (ASCI).

In these examples you can see real-world cases of customer acquisition and pain associated with well-known products and services from these companies.

Our assessment of FedEx’s value proposition:

Headline: Manage your home deliveries

Subheading / paragraph: Sending and receiving packages is convenient and safe for individuals who want to send ideas and innovations around the world.

Visual element:

Image source

Customer profile for FedEx

Customer jobs

  • FedEx customers want to share ideas and innovations with others by shipping goods around the world

Profits

  • Customers want a hassle-free way to return orders online
  • Customers are looking for a safe way to receive their packages

pains

  • Returning a package to a FedEx shipping center can be a hassle
  • Managing home deliveries can be a chore
Prepaid card for FedEx

Win creators

  • Customers can drop off their FedEx packages in the places where they shop most, like Walgreens and Dollar General
  • Customers always know where their parcel is, even when they are not at home

Painkiller

  • Thousands of FedEx drop-off points across the country
  • Receive notifications when a package is on the way and let the driver know where to drop it off

Products

  • FedEx Drop Box locations make returning packages convenient
  • FedEx Delivery Manager reroutes or reschedules deliveries to meet the customer’s schedule

Our assessment of LG’s value proposition:

Headline: State-of-the-art living experience

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

Visual element:

Example of an LG Signature Value Proposition

Image source

Customer profile for LG

Customer jobs

  • LG customers want simple yet innovative technology that will help them achieve a cutting-edge living experience

Profits

  • Customers have an intuitive and responsive experience with every device they interact with in their home

pains

  • There are too many unnecessary buttons and functions on devices that stand in the way of a simple living experience
Table of values ​​for lg

Win creators

  • Customers can use technology to improve their home experience without reading a manual

Painkiller

  • A simple design that focuses on the user and their lifestyle

Products

  • LG SIGNATURE delivers an innovative product design that creates an extraordinary living experience

Our take on Subaru’s value proposition:

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

Subheading / paragraph: The 2022 Subaru Outback brings drivers to the most adventurous places in style with the most advanced safety technology.

Visual element:

Image source

Customer profile for subaru

Customer jobs

  • Subaru customers want to explore the world’s most adventurous places in a reliable and safe vehicle.

Profits

  • Customers want to explore the country in a stylish and spacious SUV
  • Drivers look for advanced technological elements in their vehicles, including those that improve performance and safety

pains

  • The safest vehicles are not the most visually appealing
  • Some SUVs are not prepared for all-weather or off-road environments
Prepaid card for Subaru

Win creators

  • Stylish exterior and interior with plenty of ground clearance that protects the vehicle from environmental damage
  • Advanced technology to reduce accidents and make long road trips safer

Painkiller

  • Tough blackout trim for style and protection
  • 9.5 inches of ground clearance for better stability and performance
  • Driver assistance technology that helps the driver to see better, avoid accidents, control the cruise control and brake automatically in emergency situations

Products

  • 2022 Subaru outback
  • Standard EyeSight Assist technology
  • Automatic pre-collision braking
  • Adaptive cruise control with lane centering

Write a remarkable value proposition

The factors that make a potential customer a loyal customer are limited. Whether your industry has many opportunities to differentiate (like retail) or virtually no unique identifiers (like dairy), you will find that a value proposition will help you understand your ideal customer and your business as the best solution position for his needs. Use the tactics, tips, frameworks, and examples in this post to create your unique value proposition.

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

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