value prop for a 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 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

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What Makes a Slogan Successful? [Infographic]

10 SaaS Value Propositions You Wish You Had

Quiz: Can You Guess the Brands Behind These 16 Slogans?

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

10 Cliché Marketing Taglines We Should All Stop Using

10 Marketing Jingles That Make Your Ears Bleed

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

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 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.

Try the customer support platform your team and customers will love

Teams using Help Scout are set up in minutes, twice as productive, and save up to 80% in annual support costs. Start a free trial to see what it can do for you.

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

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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 .

2 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!

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What Is a Value Proposition?

Understanding value propositions, special considerations, frequently asked questions.

• Value Proposition FAQs
• Business Essentials

Value Proposition: How to Write It With Examples

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

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

Key Takeaways

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

Investopedia / NoNo Flores

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

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

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

Components of a Value Proposition

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

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

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

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

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

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

What Is the Purpose of a Value Proposition?

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

What Is an Employee Value Proposition?

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

What Happens if a Value Proposition Fails?

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

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

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

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

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

Consumerism in 2022 and beyond is serious business.

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

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

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

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

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

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

Let’s do this.

What Is Value Proposition?

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

Your value proposition should cover three elements:

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

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

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

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

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

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

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

10 Best Value Proposition Examples

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

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

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

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

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

2. Luxy Hair

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

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

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

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

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

3. charity: water

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

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

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

4.  Crossrope

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

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

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

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

5. Evernote

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

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

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

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

6. ClassPass

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

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

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

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

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

7. hardgraft

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

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

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

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

8. Crazy Egg

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

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

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

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

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

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

9. Manitobah Mukluks

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

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

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

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

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

10. Mailchimp

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

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

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

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

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

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

Tips on How to Write a Value Proposition

Clarify the purpose and vision of your company.

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

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

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

Research your audience

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

You can interview your existing or prospective customers about:

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

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

Conduct a competitive analysis

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

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

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

Jot down the benefits of using your solution

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

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

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

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

A Strong Value Proposition for a Strong Business

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

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

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

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

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

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How to Write a Value Proposition: Step-by-Step Guide + Examples

Eric Melillo

Updated: March 23, 2024

The Importance and Benefits of a Strong Value Proposition:

6 modern examples of effective value propositions:, understanding the key elements of a compelling value proposition:, crafting a value proposition in 5 simple steps:, analyzing successful value propositions: 7 top examples, how to write a killer value proposition: language and structure techniques, reinforcing your value proposition with visuals and strong headlines:, integrating your value proposition into marketing strategies and communications, a/b testing and message testing for optimizing your value proposition, mapping out your value proposition canvas for strategic clarity, mastering the art of writing a compelling value proposition:.

Unlocking the potential of a well-crafted value proposition could transform your business landscape. In this blog post, you’ll learn how to write a value proposition that resonates with your target audience.

This guide is anchored in authoritative insights and expert advice, ensuring you have credible knowledge. Your journey to mastery starts here.

Upon reading this post, you’ll learn to articulate a unique value proposition , a crucial step in distinguishing your business in the marketplace. So, let’s move forward and unravel the steps together.

A powerful value proposition is the secret sauce that sets your product marketing business apart from competitors. It’s the magic ingredient that makes potential customers sit up and take notice of your aspirational messaging. When you have a strong value proposition, it becomes easier to engage with your target audience and convert them into loyal customers by effectively positioning the benefits of your product.

Stand Out from Competitors

In today’s crowded marketplace, positioning your business is crucial for sales and success. To thrive and differentiate yourself from the competition, a good value proposition clearly communicates why your services are unique and how they solve specific customer needs better than anyone else.

Imagine you’re shopping for a new smartphone and evaluating different options based on their product marketing. You come across two options: one with an ordinary value proposition and another with a great value proposition that enhances the customer experience. The first one simply states its features, while the second one highlights how its cutting-edge technology will make your life easier, faster, and more enjoyable. When making a decision, it’s important to consider the ideal customer profile for each option.

Which one would you choose? Most likely, the product marketing with the compelling value proposition because it speaks directly to your desires and needs as a consumer. By crafting a unique value proposition that resonates with your ideal customer profile, you can create an emotional connection that sets your business apart from competitors in the sales industry.

Increase Customer Engagement and Conversion Rates

A strong value proposition not only grabs attention but also keeps potential customers engaged throughout their buyer journey. When people understand the benefits they’ll receive by choosing your product or service over others, they become more interested in what your company has to offer. This can lead to increased sales and help solve the problem of attracting and retaining customers in your business.

Think about it this way: if someone is looking for a solution to their problem in the software business, they want assurance that your product marketing will provide real value. Your value proposition should clearly communicate how your offering meets the needs of your ideal customer profile better than any other option available.

By addressing customer pain points directly in your messaging, you show potential customers that you understand their challenges and have a unique and good value proposition tailored solutions for them. This builds trust and credibility, making it more likely for them to choose your product or service over competitors. Additionally, having a great employee value proposition can also attract top talent to join your company.

Build Trust and Credibility

One of the key benefits of a strong value proposition in product marketing is its ability to build trust and credibility with potential customers. When your company clearly communicates the unique benefits your offering provides, you establish yourself as an authority in your industry. This can help solve the problem of gaining customer confidence in your business.

People are more likely to trust a business that can articulate their unique value proposition and explain why their product or service is a good value proposition. By highlighting the specific benefits and advantages your offering brings, you create a sense of confidence in potential customers that they’re making the right choice. This is important for establishing a great value proposition and building an effective employee value proposition.

For example, let’s say your business is a skincare company. Your value proposition could emphasize how your organic skincare products address the problem of harmful chemicals in conventional products. This clear communication of the unique benefits builds trust with customers who prioritize their health and well-being, fulfilling their need for natural ingredients that nourish the skin.

Analyzing successful companies’ value propositions for inspiration

Successful companies understand the importance of a compelling value proposition in product marketing that sets them apart from their competitors. By analyzing their value propositions, businesses can gain valuable insights and inspiration for crafting their own unique selling points. This is a crucial need for any company.

One business that has mastered the art of a persuasive value proposition is Apple. Their products are known for their sleek design, user-friendly interface, and seamless integration across devices. Apple’s value proposition focuses on delivering innovative technology that enhances people’s lives. They emphasize the benefits customers will experience by using their products rather than simply listing product features. Apple is a business that understands the need for delivering innovative technology to enhance people’s lives.

Another example comes from the business and e-commerce company Amazon. Their value proposition revolves around convenience and an extensive selection of products that meet the needs of millions of consumers worldwide. With fast shipping options and easy returns, Amazon has positioned itself as the go-to online marketplace for consumers who need a reliable and efficient shopping experience.

One standout example is Salesforce. Their company’s value proposition centers around helping businesses manage customer relationships effectively through their cloud-based CRM software. Salesforce highlights how their solution can streamline sales processes, increase productivity, and drive revenue growth for large organizations in need.

By examining these examples and others like them, we can identify common elements in effective value propositions for businesses across various industries. These companies focus on addressing customer pain points and offering solutions that differentiate them from similar products or services in the market. This is what every business needs to succeed.

Highlighting unique selling points in various industries (e.g., technology, e-commerce)

Value propositions are not limited to a specific industry; they play a crucial role in different sectors such as technology and e-commerce. Let’s explore some unique selling points within these industries to understand how effective value propositions resonate with target audiences in the product marketing business.

In the technology sector, Microsoft is a standout company with its Office 365 suite. Their value proposition emphasizes collaboration, productivity, and accessibility across devices. By highlighting features like real-time document editing and seamless file sharing, Microsoft appeals to both individuals and businesses in need of efficient and user-friendly software solutions.

Moving to the e-commerce industry, we have the example of Shopify, a company that specializes in product marketing. Their value proposition revolves around empowering entrepreneurs to build and grow their online businesses. With easy-to-use tools, customizable themes, and integrated payment options, Shopify provides a comprehensive platform that simplifies the process of setting up an online store. Entrepreneurs in need of a reliable product marketing company can turn to Shopify for their e-commerce needs.

These examples demonstrate how effective value propositions in product marketing and e-commerce focus on addressing specific needs and pain points within their target markets. By highlighting unique selling points that resonate with their audiences, these companies attract customers looking for business solutions tailored to their requirements.

Demonstrating how effective value propositions resonate with target audiences

The success of a value proposition lies in its ability to resonate with the target audience. Let’s delve deeper into how effective value propositions in product marketing connect with customers on an emotional level and drive them towards making a purchase or taking action. In the business world, companies need compelling value propositions to attract customers.

When Subaru introduced its “Love” campaign, they tapped into the emotions of their target audience – families who prioritize safety and adventure. Subaru’s value proposition in product marketing highlights features such as all-wheel drive capability and advanced safety systems while emphasizing their commitment to family values. By aligning their messaging with what matters most to their customers, Subaru has built a loyal following that sees them as more than just another car manufacturer. This has been crucial for their business growth and success.

Similarly, Dollar Shave Club disrupted the shaving industry by offering high-quality razors at affordable prices through a subscription model. Their humorous and relatable marketing campaigns resonated with consumers tired of overpriced razor cartridges. The business’s value proposition focuses on affordability, convenience, and quality products without compromising on performance, making it a successful company in the industry.

These examples illustrate how effective value propositions in product marketing leverage emotional connections to create stronger bonds between brands and consumers. By understanding their target audience’s desires, fears, or aspirations in the business world, companies can craft compelling messages that speak directly to those needs.

Crafting an effective value proposition is crucial for any business in the field of product marketing looking to differentiate itself from competitors and capture the attention of its target audience. By understanding the key elements that make up a compelling value proposition, businesses in product marketing can create a statement that resonates with their customers and drives them to take action.

Identify Your Audience’s Needs, Desires, and Pain Points

To create a powerful value proposition for your business, it is essential to have deep insights into your target audience. Understanding their needs, desires, and pain points allows you to tailor your message specifically to address their concerns. Conduct thorough market research and gather data on your audience’s buying behaviors to gain valuable insights for your business.

By identifying what motivates your audience and what challenges they face, you can position your product or service as the solution they are seeking. For example, if you are targeting busy professionals who struggle with time management, emphasize how your offering saves them time and simplifies their lives. This is a great way to showcase your unique value proposition and demonstrate your customer value proposition. Here’s a sample value proposition: “Our product helps busy professionals save time and simplify their lives.” Check out these value proposition examples for inspiration.

Craft a Clear and Concise Statement That Communicates Unique Benefits

Once you have gathered insights about your audience, it’s time to craft a clear and concise value proposition statement that effectively communicates the unique benefits of your product or service. Keep in mind that simplicity is key here – avoid using technical jargon or complex language that might confuse potential customers.

Your value proposition should clearly state what sets you apart from competitors while highlighting the specific benefits customers will receive by choosing your offering. Focus on the outcomes or results they can expect rather than just listing features. Consider using bullet lists to highlight these benefits for easy readability.

For instance, instead of saying “Our software has advanced analytics capabilities,” emphasize how “Our software helps businesses make data-driven decisions faster by providing real-time insights, enhancing the customer value proposition. Try our sample value proposition today.”

Incorporate Emotional Appeal to Create an Impactful Value Proposition

In addition to addressing practical needs and benefits, incorporating emotional appeal into your value proposition can significantly impact its effectiveness. People make purchasing decisions based on both logic and emotion, so appealing to their emotions can create a stronger connection with your audience.

Consider the emotional desires or aspirations that your customer value proposition fulfills. Does it provide a sense of security, happiness, or success? Use language that evokes these emotions and paints a vivid picture of how your offering can positively impact their lives.

For example, if you are selling eco-friendly cleaning products, you could emphasize how using your products contributes to a healthier environment and creates a better future for the next generation. This value prop highlights the positive impact of your products on the environment and future generations.

By understanding the key elements of a compelling value proposition – identifying your audience’s needs, crafting a clear statement that communicates unique benefits, and incorporating emotional appeal – you can create a powerful message that resonates with your target audience. Remember to continuously evaluate and refine your value proposition as market conditions change and customer preferences evolve.

Step 1: Conducting Market Research to Understand Customer Preferences

Before crafting a value proposition, it is crucial to conduct thorough market research to gain insights into your target audience’s preferences and needs. This step will help you understand what motivates your customers and how your product or service can provide them with a solution.

Start by identifying your target market and gathering data about their demographics, behaviors, and pain points to understand their value prop. Use surveys, interviews, and social media listening tools to gather valuable feedback directly from your potential customers and uncover patterns, trends, and common challenges that your audience faces.

By understanding the specific pain points of your customers, you can tailor your value proposition to address their needs directly. This research will also help you differentiate yourself from competitors by identifying gaps in the market that you can fill with a unique solution.

Step 2: Defining Your Brand’s Unique Selling Points and Competitive Advantage

Once you have a clear understanding of your target audience’s preferences, it’s time to define your brand’s unique selling points (USPs) and competitive advantage, which are part of your value proposition. These value props are the qualities that set your product or service apart from others in the market.

Consider what makes your offering distinct and better than alternatives available. Is it superior quality, affordability, convenience, innovation, or exceptional customer service? Identify these key differentiators as they form the foundation of your value proposition.

To determine your value prop and competitive advantage, analyze how you compare to competitors in terms of price, features, benefits, reputation, or any other relevant factors. Highlight the areas where you excel or offer something truly unique that others cannot replicate easily.

Remember that authenticity is essential when defining your value proposition (value prop) and competitive advantage. Ensure that these qualities align with what you genuinely offer as a brand; otherwise, customers may feel misled if expectations are not met.

Step 3: Creating a Compelling Headline, Subheadline, and Supporting Statements

Crafting a compelling headline, subheadline, and supporting statements is crucial to grab your audience’s attention and communicate the value you offer. These elements should be concise, impactful, and clearly convey the benefits customers can expect from your product or service.

Start with a headline that captures the essence of your value proposition in a single sentence. It should be attention-grabbing, addressing a specific customer pain point or desire while highlighting your unique solution.

The subheadline provides an opportunity to elaborate further on the headline by adding more context or emphasizing additional benefits. Make it engaging and persuasive to encourage readers to continue reading and understand the value prop.

Supporting statements are where you provide more detailed information about how your product or service solves customer problems or fulfills their desires. Use bullet lists to outline specific features, benefits, or advantages that make your value prop stand out.

Remember to keep these statements focused on the customer rather than solely promoting your brand. Explain how your value prop addresses their needs and why it is superior to other options available.

Step 4: Presenting Your Value Proposition Clearly and Succinctly

To ensure that your value proposition resonates with potential customers, it’s essential to present it clearly and succinctly. Avoid jargon or complex language that may confuse or alienate readers; instead, use simple words and vocabulary that everyone can understand.

Consider using informal sentence structures and tone throughout the presentation of your value proposition. This approach creates a friendly and relatable atmosphere for readers, making them more likely to connect with what you’re offering.

Utilize personal pronouns such as “you” to engage directly with readers and convey your value prop. This helps them envision themselves benefiting from your product or service. Incorporate rhetorical questions strategically to guide readers’ thoughts towards recognizing their need for what you offer.

Analogies and metaphors can also be effective tools in conveying complex ideas simply. They help paint vivid mental images for readers while making your value proposition more memorable and relatable.

Step 5: Testing and Refining Your Value Proposition

Crafting a value proposition is an iterative process that requires continuous testing and refinement . Once you have created your initial value proposition, it’s essential to gather feedback from customers or potential customers to gauge its effectiveness.

Consider conducting A/B tests by presenting different versions of your value proposition to different segments of your target audience. Analyze the results to identify which messaging resonates best with your customers and adjust accordingly.

Regularly review market trends, customer preferences, and competitor offerings to ensure that your value proposition remains relevant and competitive. Stay open to making changes as needed to keep up with evolving customer needs and maintain a strong position in the market.

Real-Life Examples That Inspire Success

Examining real-life examples from successful brands across different industries provides valuable insights into crafting an effective value proposition. By analyzing the strategies employed by these companies, we can identify common elements that make their value propositions stand out.

Imperfect Foods: Redefining Sustainability and Convenience

Imperfect Foods is a prime example of a brand that has successfully crafted a compelling value proposition. Their mission revolves around reducing food waste and promoting sustainability, while also offering convenience to customers. In their value proposition, they emphasize the benefits of receiving affordable, high-quality groceries delivered straight to your doorstep while making a positive impact on the environment.

By highlighting the dual advantages of sustainability and convenience, Imperfect Foods appeals to environmentally conscious consumers who are seeking convenient solutions for their grocery needs. Their value proposition effectively communicates their unique selling point and resonates with a target audience looking to align their purchasing decisions with their values.

Unveiling the Secrets of Effective Value Propositions

To create an impactful value proposition, it’s crucial to learn from the language choices, structure, and visual presentation utilized by successful brands. Let’s delve deeper into some key elements that contribute to the effectiveness of these value propositions:

• Clear and Concise Language: Successful value propositions use simple yet powerful language that clearly communicates the benefits or solutions provided by the brand. Avoid jargon or technical terms that may confuse potential customers.
• Unique Selling Point: A strong value proposition highlights what sets a brand apart from its competitors. Whether it’s price competitiveness, superior quality, or innovative features, identifying and emphasizing this unique selling point is essential.
• Customer-Centric Approach: Effective value propositions focus on addressing customer pain points or desires directly. By understanding your target audience’s needs and wants, you can tailor your message to resonate with them on a personal level.
• Visual Appeal: Visual elements such as color schemes, images, and typography play a crucial role in capturing attention and conveying the brand’s personality, making them a key part of the value prop. Consistency in visual presentation across different platforms enhances brand recognition.

Learning from Success Stories

Let’s explore a few more examples of successful value propositions to gain further inspiration:

• Apple: “Think Different” – Apple’s value proposition highlights their commitment to innovation, user-friendly design, and seamless integration across devices. By encouraging customers to think differently, they position themselves as a brand that challenges the status quo.
• Airbnb: “Belong Anywhere” – Airbnb’s value proposition revolves around offering unique travel experiences that allow guests to feel at home wherever they go. They emphasize the personal connections and sense of belonging that can be achieved through their platform.
• Nike: “Just Do It” – Nike’s iconic tagline has become synonymous with motivation and empowerment. Their value proposition inspires individuals to overcome obstacles and push their limits through the power of sport.
• Tesla: “Accelerating Sustainable Transport” – Tesla’s value proposition centers around their commitment to sustainable transportation solutions without compromising on performance or style. They appeal to environmentally conscious consumers who also desire cutting-edge technology.
• Amazon: “Earth’s Biggest Selection” – Amazon emphasizes its vast product selection and convenient shopping experience in its value proposition. By positioning themselves as a one-stop-shop for all consumer needs, they have become a trusted online marketplace worldwide.
• Coca-Cola: “Open Happiness” – Coca-Cola’s value proposition focuses on the emotional connection associated with their beverage rather than just the product itself. They aim to bring joy, happiness, and shared moments through their refreshing drinks.
• Spotify: “Music for Everyone” – Spotify positions itself as a platform that provides access to an extensive library of music for people of all tastes and preferences. Their value proposition highlights convenience, personalization, and discovery within the realm of music streaming.

By analyzing these successful value propositions, we can gain valuable insights into crafting our own compelling messages. Remember, the key lies in understanding your target audience, clearly communicating the benefits you offer, and presenting your brand in a visually appealing manner.

Using persuasive language to capture attention and evoke emotions

One of the most important aspects is using persuasive language that captures attention and evokes emotions. The words you choose can make all the difference in how your value proposition is perceived by potential customers.

To create a compelling value proposition, consider using power words that elicit strong emotions. Words like “amazing,” “revolutionary,” or “life-changing” can instantly grab the reader’s attention and pique their interest. By appealing to their emotions, you can make your value proposition more memorable and impactful.

Incorporating storytelling techniques is a powerful way to connect with your audience on a deeper level and enhance your value prop. Instead of simply stating the features of your product or service, try framing them within a narrative that resonates with your target customers. This allows them to envision themselves benefiting from what you offer, making it more likely for them to take action.

Furthermore, utilizing social proof through testimonials or success stories can enhance the persuasiveness of your value proposition. People are more likely to trust the experiences and opinions of others who have already benefited from your product or service. Including real-life examples of satisfied customers can build credibility and strengthen the emotional appeal of your value proposition.

Structuring the value proposition with clarity, simplicity, and brevity

In order for your value proposition to be effective, it must be structured in a way that is clear, simple, and concise. A cluttered or confusing message will only confuse potential customers and deter them from engaging further.

Start by clearly stating the unique benefit or solution you provide right at the beginning of your value proposition. This ensures that readers immediately understand what sets you apart from competitors.

Next, focus on simplicity in both language and design to enhance your value prop. Use straightforward language that avoids jargon or technical terms that may alienate certain audiences. Keep sentences and paragraphs short, making it easier for readers to digest the information quickly. Utilize bullet points or numbered lists to break down key points or features in a concise and scannable manner, further emphasizing your value prop.

Remember, brevity is crucial. Avoid lengthy explanations or unnecessary details that may overwhelm readers. Instead, focus on capturing their attention with a succinct statement that conveys the value you offer.

Incorporating power words, testimonials, or guarantees for added impact

To truly make your value proposition stand out, consider incorporating additional elements such as power words, testimonials, or guarantees. These can add an extra layer of impact and persuasion to your message.

Power words are emotionally charged terms that create a sense of urgency or excitement and enhance the value prop. Words like “exclusive,” “limited time offer,” or “guaranteed” can compel readers to take action by creating a fear of missing out or emphasizing the benefits they will receive.

Testimonials provide social proof by showcasing real experiences from satisfied customers. Including positive feedback or success stories adds credibility and builds trust in your brand. When potential customers see that others have had positive outcomes from using your product or service, they are more likely to believe in its value.

Lastly, consider incorporating guarantees into your value proposition. Assuring customers that they have nothing to lose by trying your offering can help alleviate any doubts they may have. Whether it’s a money-back guarantee, free trial period, or satisfaction guarantee, these assurances demonstrate confidence in what you provide and encourage potential customers to give it a try.

Visuals and headlines play a crucial role in capturing the attention of your target customers. By utilizing eye-catching visuals that support the message and crafting headlines that instantly communicate the value proposition, you can effectively reinforce your brand’s unique offering.

Utilizing Eye-Catching Visuals that Support the Message

Visual elements are an essential component of any value proposition as they have the ability to convey messages quickly and effectively. When designing visuals for your value proposition, consider incorporating images or videos that align with your brand’s identity and resonate with your target customers. For example, if you are selling home decor products, using high-quality images showcasing beautifully decorated spaces can evoke aspirational messaging and appeal to customers’ desires for an aesthetically pleasing environment.

In addition to images, consider using other visual elements such as infographics or charts to present data or statistics about your product’s benefits. This not only adds credibility but also makes complex information more digestible for your audience. By selecting visuals that complement your tagline or headline, you create a cohesive visual experience that reinforces your value proposition.

Crafting Headlines that Instantly Communicate the Value Proposition

Headlines are like gateways to your value proposition; they need to capture attention and communicate the essence of what you offer within seconds. To achieve this, start by identifying the key benefits or unique selling points of your product or service. Then, craft concise and impactful headlines that highlight these aspects.

For instance, if you’re selling productivity tools aimed at helping professionals streamline their work processes, a strong headline could be “Boost Your Efficiency with Our Cutting-Edge Productivity Tools – The Ultimate Value Prop.” This headline not only communicates the benefit (improved efficiency) but also emphasizes its uniqueness (cutting-edge) and highlights the value proposition.

To further enhance the effectiveness of your headlines, consider adding a subheadline that provides additional context or elaborates on your value proposition. For example, “Designed for Busy Professionals Looking to Maximize Productivity and Save Time.” This subheadline reinforces the target customer segment (busy professionals) and emphasizes the intended outcome (maximizing productivity and saving time).

Ensuring Consistency Between Visuals, Headlines, and Supporting Content

Consistency is key when reinforcing your value proposition. It’s important to ensure that your visuals, headlines, and supporting content work harmoniously together to deliver a cohesive message. When designing your product pages or home page, make sure that the visual elements align with the overall design and branding of your website.

Moreover, the content accompanying your visuals should provide further details about how your product or service addresses the needs of your target customers. This can include case studies, testimonials from satisfied customers, or any other social proofs that demonstrate the value you offer.

In addition to maintaining consistency across different elements of your value proposition, it’s crucial to align them with your brand identity. By using consistent colors, fonts, and design elements throughout all touchpoints with customers – be it on your website or in marketing materials – you reinforce brand recognition and build trust.

Incorporating the value proposition across all marketing channels

To maximize the impact of your value proposition, it is crucial to incorporate it consistently across all marketing channels. Whether you are engaging in digital marketing efforts or traditional offline strategies, aligning your messaging with your value proposition will help create a cohesive brand image and resonate with your target market.

In product marketing, for example, every piece of promotional material should highlight how your offerings deliver value to customers. This could be through emphasizing features that solve specific pain points or showcasing the unique benefits that set your product apart from competitors. By consistently communicating this value proposition through various media such as social media posts, blog articles, and email newsletters, you ensure that potential customers receive a clear message about what makes your product or service valuable.

Moreover, integrating your value proposition into marketing campaigns allows you to position yourself effectively in the market. When planning a campaign, consider how each element contributes to reinforcing your key message. From creating attention-grabbing visuals that align with your brand identity to crafting compelling copy that highlights the benefits customers can expect, every aspect should reflect and reinforce your value proposition.

Aligning messaging with the value proposition in advertisements and campaigns

Advertisements play a significant role in capturing consumers’ attention and generating interest in your offerings. To make these efforts impactful, it is essential to align their messaging with your value proposition. By doing so, you create a consistent narrative that resonates with potential customers and strengthens their perception of what sets you apart from competitors.

When developing ad campaigns, focus on conveying the core elements of your value proposition concisely and persuasively. Highlight how using your product or service can enhance customer experience or solve specific problems they may face. Use language that speaks directly to their needs and desires while clearly articulating why choosing you over others is advantageous.

For instance, if one of the pillars of your value proposition is providing easy access to information or services, your advertisements should emphasize this convenience. Whether it’s through showcasing a user-friendly interface or highlighting quick and efficient delivery, aligning your messaging with your value proposition ensures that potential customers understand the unique benefits you offer.

Using consistent language to reinforce the value proposition in customer communications

Consistency is key to establishing a strong connection with your audience and building trust. By using language that consistently reflects your brand’s core message, you effectively communicate your value proposition.

Ensure that all customer touchpoints, such as emails, live chats, and phone conversations, reflect the same language and tone as your overall marketing strategy. This consistency not only reinforces your value proposition but also creates a seamless experience for customers throughout their journey with your brand.

Consider incorporating specific phrases or keywords from your value proposition into customer communications. For instance, if one of the pillars of your value proposition is exceptional customer service, train support staff to use phrases like “We’re here to help” or “Your satisfaction is our priority.” These small but impactful details reinforce the core values you want customers to associate with your brand.

Conducting A/B tests to compare different versions of your value proposition

It’s essential to test different versions of your value prop to determine which resonates best with your target audience. A/B testing is an effective method that allows you to compare two or more variations of your value prop messaging and identify the most impactful one.

To conduct an A/B test for your value proposition, follow these steps:

• Identify the key elements: Start by breaking down your value proposition into its core components, such as headline, subheadings, body text, or call-to-action. These are the areas where you can experiment with different messaging.
• Create multiple versions to enhance your value prop: Develop alternative versions of each component, ensuring they differ in terms of wording, tone, or emphasis. For example, you might try highlighting different benefits or using contrasting language styles.
• Split your audience: Randomly divide your target audience into groups and expose each group to a specific version of your value proposition. This will help you gauge their reactions and preferences accurately.
• Measure the results: Track relevant metrics such as click-through rates, conversion rates, engagement levels, and value prop to evaluate the performance of each variation. Analyzing these data points will provide insights into which version is more effective at capturing attention and driving desired actions.
• Iterate based on insights: Based on the results obtained from the A/B test, refine and optimize your value proposition further by incorporating the elements that performed well in engaging your audience. Continuously iterate until you achieve optimal messaging that effectively communicates the unique value you offer.

By conducting A/B tests for your value proposition regularly, you can fine-tune its messaging to align with customer preferences and maximize its impact on conversions and engagement.

Gathering feedback from customers through surveys or focus groups

In addition to A/B testing, gathering direct feedback from customers is a valuable approach to refining your value proposition. Surveys and focus groups provide opportunities to delve deeper into the thoughts and opinions of your target audience, enabling you to gain valuable insights that can shape your messaging strategy.

Here’s how you can effectively gather feedback through surveys or focus groups while highlighting your value prop.

• Design targeted survey questions: Create a well-structured survey with questions specifically tailored to understand customers’ perception of your value proposition. Ask about their pain points, what they find appealing, and any suggestions for improvement.
• Leverage online survey tools like SurveyMonkey or Google Forms to distribute user-friendly and accessible surveys across various devices, including mobile devices. This will enhance your value prop.
• Incentivize participation: Offer incentives such as discounts, exclusive content, or entry into a prize draw to encourage customers to participate in the survey. This increases the likelihood of obtaining a higher response rate and strengthens your value prop.
• Conduct focus group sessions: Organize focus group sessions where you can interact directly with a small group of customers who fit your target audience profile. Encourage open discussions and probe deeper into their perceptions and preferences regarding your value proposition.
• Analyze feedback and identify patterns: Thoroughly analyze the responses received from surveys or focus groups, looking for recurring themes or patterns that emerge across different participants. These patterns will help you identify areas of improvement or highlight aspects of your value proposition that resonate strongly with your audience.

By actively seeking feedback from your target audience through surveys or focus groups, you gain valuable insights that guide you in optimizing your value proposition further based on real customer perspectives.

Iteratively refining the value proposition based on data-driven insights

To create an effective value proposition, it’s crucial to adopt an iterative approach driven by data-driven insights gained from A/B testing and customer feedback. Continuously refining your messaging ensures it remains relevant and compelling in an ever-evolving market landscape.

Here’s how you can iteratively refine your value proposition based on data-driven insights:

• Analyze A/B test results: Review the performance metrics obtained from A/B tests and identify which versions of your value proposition generated the most favorable outcomes.

In the fast-paced world of business, it’s crucial to have a clear understanding of your value proposition. This is where the value proposition canvas comes into play. By using this visual tool, you can map out the key components of your value proposition and gain strategic clarity. Let’s dive in and explore how to effectively utilize this canvas for maximum impact.

Identifying Customer Segments, Pain Points, Unique Features, and Benefits

The first step in mapping out your value proposition canvas is identifying your customer segments. Who are the individuals or groups that will benefit most from your product or service? Understanding their needs, preferences, and pain points is essential for crafting a compelling value proposition.

Once you have identified your customer segments, it’s time to delve deeper into their pain points. What are the challenges they face? What keeps them up at night? By pinpointing these pain points, you can tailor your offering to address their specific needs.

Next, focus on identifying the unique features of your product or service. What sets you apart from the competition? Is there a particular aspect that makes your offering stand out? Highlighting these unique features will help differentiate your brand and attract potential customers.

Finally, consider the benefits that your product or service brings to the table. How does it solve your customers’ problems? What positive outcomes can they expect from choosing you over others? Clearly articulating these benefits will make it easier for customers to see the value in what you offer.

Gaining Strategic Clarity by Visually Analyzing Relationships

Now that you have identified all the key elements of your value proposition – customer segments, pain points, unique features, and benefits – it’s time to analyze their relationships visually . The beauty of using a canvas is that it allows you to see how these components interact with one another.

Start by drawing connections between customer segments and their corresponding pain points. This will help you understand which segments are most affected by specific challenges and how your product or service can provide solutions.

Next, map out the relationship between your unique features and the pain points they address. By doing so, you can determine which features are most relevant to each customer segment’s needs. This analysis will guide you in positioning your product or service effectively.

Finally, connect the benefits of your offering to both the pain points and unique features. This step is crucial for demonstrating the value that customers will gain by choosing your brand. It also helps you refine and strengthen your value proposition further.

Putting it All Together: Creating a Powerful Value Proposition

By mapping out your value proposition canvas and analyzing its components visually, you gain strategic clarity that enables you to create a powerful value proposition. Armed with this knowledge, you can now craft a compelling message that resonates with your target audience.

Remember to incorporate all the insights gained from identifying customer segments, pain points, unique features, and benefits into your value proposition statement. Clearly communicate how your product or service solves their specific problems and delivers tangible benefits.

To illustrate this process further, let’s consider an example:

Imagine you’re developing a new mobile app designed to help people track their fitness goals. Your customer segments could include busy professionals who struggle to find time for exercise and health-conscious individuals looking for an easy way to monitor their progress.

The pain points for these segments might be lack of motivation, difficulty tracking workouts and nutrition, and limited access to professional guidance. Your app’s unique features could include personalized workout plans, meal tracking functionality, and access to expert advice through video tutorials.

The benefits of using this app would be improved fitness levels, increased accountability, convenience in tracking progress anywhere at any time, and expert guidance without expensive gym memberships or personal trainers.

By mapping out these elements on a value proposition canvas and visually analyzing their relationships, you can create a compelling value proposition statement such as: “Our mobile app takes the hassle out of fitness tracking, providing personalized workout plans, expert advice, and convenient progress monitoring to help you achieve your health goals.

Congratulations! You’ve now journeyed through the intricate process of crafting an effective value proposition. From understanding its significance in the competitive business world, to examining noteworthy examples, and finally navigating the steps to create your own, you’ve gained a comprehensive understanding of how to write a value proposition.

As you move forward, remember this: the art of value proposition crafting doesn’t end once you’ve created a compelling statement. It’s an ongoing process of testing, refining, and integrating into your marketing strategies. So, put your newfound knowledge to use, make your offering stand out and resonate with your target audience. Now is the perfect time to start writing your killer value proposition!

What is a value proposition example?

A value proposition example is Dollar Shave Club’s succinct statement: “Shave Time. Shave Money.” The brand clearly communicates that they offer high-quality affordable razors, conveniently delivered to their customers’ doorsteps, saving them both time and money.

What are the elements of value proposition?

The elements of a value proposition include the headline, sub-headline or a 2-3 sentence paragraph, list of benefits or features, and social proof or visual representations. These elements collectively define the unique selling point(s) of a product or service.

What are the 5 different types of value propositions?

The five types of value propositions are: All Benefits – emphasizes all offerings, Points of Difference – stresses unique attributes, Resonating Focus – highlights one or two key benefits, Value Story – narrative form of benefits, and Comparative – showcases superiority to competitors.

What is Starbucks value proposition?

Starbucks’ value proposition revolves around a premium coffee experience. They provide high-quality coffee along with comfortable, cozy spaces to sip and socialize. Starbucks also capitalizes on convenience with widespread locations and mobile ordering options.

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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.

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Allisa Boulette

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

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How To Write a 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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Featured Reads

• Business strategy |
• How to write an inspiring value proposi ...

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

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

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

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

What is a value proposition?

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

Value statement 

Value positioning

Brand proposition

​​Unique selling proposition (USP)

Unique value proposition (UVP)

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

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

The four main types of value propositions include:

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

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

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

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

Value proposition vs. mission statement

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

4 questions of a value proposition

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

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

Who is your audience? Identify your target audience .

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

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

Other tips to consider when crafting your value propositions include:

Be direct with your audience. Clarity is key.

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

Avoid sales jargon and buzzwords.

Keep it brief.

How to create a value proposition

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

1. Map your value proposition canvas

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

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

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

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

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

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

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

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

2. Go deeper with your questions

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

Which customers are you going to serve?

Which needs are you going to meet?

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

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

3. Use a value proposition template

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

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

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

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

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

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

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

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

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

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

Value proposition examples

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

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

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

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

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

2. Pinterest: “Welcome to visual discovery.”

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

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

3. Spotify: “Listening is everything.”

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

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

Put plans into action with Asana

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

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

Related resources

15 creative elevator pitch examples for every scenario

How Asana streamlines strategic planning with work management

How to create a CRM strategy: 6 steps (with examples)

What is management by objectives (MBO)?

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

Unique Value Proposition

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

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

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

Defining the Value Proposition: Three Essential Questions

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

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

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

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

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

Operational Effectiveness vs. Strategy

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

How to create a value proposition

Developing a strong value proposition is an essential component of successfully bringing a product to market .

The best value props are brief statements that outline what makes your product unique and necessary – and why your target audience should choose it. In this sense, it really can make the difference between a prospective customer giving you their business or choosing to go with your competitor.

Such is the importance of crafting powerful value propositions, we've created this complete guide that walks you through everything you need to know about value props. We'll begin by defining value propositions, before unpacking how to articulate your key differentiators via compelling statements that will resonate with your target audience.

By the end, you'll have an actionable framework and template for developing a value proposition that chimes with the wants and needs of your prospective customers – and, most importantly, drives conversions.

Whether you're looking to improve an existing value prop or create one from scratch for a new product or service, this guide will provide practical tips and examples to help you showcase the true value of your product.

Let's get started!

What is a value proposition?

A value proposition communicates how your product or service will benefit your customer. Your value prop should outline why your product is essential for your target segment , how it will solve their pain points, and why your product is more desirable than others on the market.

Time is of the essence when communicating your value to a prospective customer; research has suggested you have between 5 to 30 seconds to hold the attention of a visitor to your landing page before they take their custom elsewhere.

How to communicate your value proposition to prospects

Why is a value proposition important?

Your value proposition is important as it allows your customers to understand the value of your products. It also helps customers to see your product's benefits and helps persuade them that your product is the best option to solve their problems.

How does a value prop fit in your comms?

Value propositions can often be confused with other types of marketing communications. Let's examine the differences between value props, positioning statements, marketing messaging, taglines, mission statements, and brand promises.

Value proposition vs product positioning

First off, your value proposition is your promise to the customer. It's the promise of the value you're about to deliver. Positioning , on the other hand, is more about the position you want to occupy in the mind of the customer. A shortcut to that is the category:

• What category are you in?
• Are you a cybersecurity firm?
• Are you an HR SaaS company?
• Are you an infrastructure player?
• Are you a storage company?

Sometimes positioning is similar to a category in the mind of the customer. That's not a value prop, that's positioning.

Value proposition vs messaging

Messaging is all about communicating directly to specific target personas. In this sense, it's far more specific and targeted than a value proposition that might be more general. Where a value prop seeks to convey an overarching promise, marketing messaging is far more targeted and geared towards connecting with specific customer segments.

Value proposition vs tagline

Value propositions are often confused with taglines, but they're entirely different. A tagline is a short, catchy phrase that acts as a sales selling point. The value prop, by contrast, is the underlying promise of the value that will be delivered by the product.

Value proposition vs mission statement

A mission statement explains a brand’s purpose for existing whereas a value proposition shares the value of your product.

Value proposition vs brand promise

The brand promise focuses on the long-term meaning of the brand, while the value proposition focuses on products and features.

Which business functions use value propositions?

Value propositions are not intended to be used as-is by salespeople, or put up on websites to be used as slogans or taglines. Instead, it's important to think of value props as foundational statements that different business functions can use and build from.

Copywriters

Copywriters will take the value proposition and turn that into copy for your website.

Branding team

A branding team will start with the value prop when doing advertising, digital and media buys, or ad copy. Among other things, they're going to need personas , your branding, strategy, etc. But the value prop is used by those professionals.

Digital marketers

To create compelling and efficient digital marketing campaigns, you need to who you're targeting, and why that target audience should choose your product over those of your competitors. This information will all be contained within a powerful value proposition.

Graphic designers

Designers are going to want to create a visual representation of your value prop. Creative, different design logos, images, graphics, all those elements should reinforce your value proposition and they should be consistent. They are going to be consumers of your value prop.

Sales enablement

The sales enablement team will need to use the value prop for sales training materials, battlecards , and playbooks.

How to format a value proposition

There isn’t a universally accepted way of creating value propositions; what works for one company could be unsuitable for another.

However, while a value proposition can be presented in any number of ways, a basic formula applied by many companies includes:

• A sub-headline
• Key benefits of the product or service
• An accompanying image

When you’re creating your value proposition, it’s essential to write an eye-catching headline; on average, 8 out of 10 people will only read the headline , with just 2 out of 10 opting to read the rest. However, if your headline is enticing, this will prompt your readers to check out the rest of the content - you need to nail your messaging.

Headlines should be short, concise, and snappy, to grab the attention of your readers. This will entice them to read the sub-heading, in which you can explain the benefits of your product further. When the time does come to provide more information, hone in on the key features most relevant to your buyer personas - use this opportunity to pique their interest and identify with your key messaging.

Finally, include a carefully selected image to tie all the aforementioned components together and reinforce what you bring to the table. Don’t be influenced by aesthetics. Any image included should bring value and solidify your value proposition. For example, a picture of people using, and enjoying, your product.

3 key elements of a killer value proposition

The Aventi Group shares insights into elements of a great value prop.

"There are three things that are key if you're going to create a killer value prop, almost like a litmus test."

"What is the problem we're trying to solve? It's got to solve a specific job that a person is trying to achieve. On the customer side:

• What problem are we trying to solve?
• Is it really worth solving that problem?
• Is it nice to have?
• Is it a critical pain point?
• How high of a priority is it?"

"We also want the value prop to speak to why now? That's the case for change or the case for action.

"Though a lot of times customers are fine, don't be afraid to disrupt the status quo and make a move. A value proposition should be compelling, actionable, and urgent - if change is needed to make this happen, then so be it.

"It needs to convey some level of urgency, and maybe a little bit about the consequences of inaction. What if you don't move forward, what's at stake here?"

"The third thing is why us? We need to get the differentiator in the value prop because it's not enough to say why and why now you also want to distinguish why your company, and why your solution.

"You're going to need to make some claims that should be defensible, backed up by proof points, concrete and measurable. That helps to reinforce why we are the best option."

How to write a value proposition: example

The Aventi Group highlights some examples of value propositions.

"I'm going to give you two flavors, a short version, and then a long version. And I'm going to give you three specific client examples. These might be templates for you to think about."

Value proposition: facility management SaaS example

"The first example I'm going to use is a SaaS company. They're in the facility management software space, full disclosure, they're a client of ours called 4insite.

"They sell software to large organizations that have a lot of facility workers. Think of custodial staff, think of electricians, plumbers, landscapers, all those contract folks who come into buildings or facilities to maintain the facility."

The short version

"This is the short version of the value prop.

"4insite helps organizations connect, analyze, manage, and empower their frontline staff.

"That's very concrete, it may not sound exciting to you but I will tell you the persona we're speaking to is dealing with these issues here. Let's go through this one by one."

"Manual processes. The current pain is facility executives, VPs, directors are fed up with a lot of manual processes, very disconnected tools, managing all these workers and it could be literally hundreds of workers on site.

"With a pandemic going on there are extra concerns about safety and compliance. Unions are concerned about the health and wellbeing of the workers, so the why is very compelling, you can't have that kind of situation."

"So you need ideally a SaaS solution that is built specifically for facility management."

"Because you're losing customers, there are customers that are unhappy with the quality issues, the bathrooms aren't totally clean or the facilities are not being maintained or not safe and the facility companies are choosing other competitors.

"This gives you a little feeling about what the value prop looks like."

The long-form version

"I know this is a little bit of an eye chart so I'll just spend a moment to go through this.

"This is a tool that product marketing folks have used for decades. It's been around a long time, a Stanford professor. I think his name is Lynn Phillips. It originally coined the long-form value prop.

"When I was a HP executive, we were trained on this long-form tool. This is just the tool for product marketing folks, you don't necessarily need to share this out with everybody.

"In this example, I'm sharing with you 4insite, we start off with who are the target companies you're going after? Large organizations that have a large frontline staff, at least 50 of those. This is similar to the ideal customer profile.

"Who are they? These are companies that have some pain in quality, safety, compliance, union issues. This is the positioning, the category, 4insite is a facility management solution, a SaaS offering.

"That's the mental bucket we want customers to think, "Oh, you're a SaaS offering or software company, you're not a services company, you're a software company". That's the positioning. Now, this is what we're delivering, this is what 4insite does, it’s reporting, dashboard, mobile communications, all this stuff here.

"The differentiator here is versus manual tools, which are a pain in the neck, they lead to all kinds of quality problems, compliance problems, safety problems.

"And there's an option which sometimes customers have internally developed software so that's a competitor. That's the do-nothing scenario. That's the status quo scenario.

"The reason to go with 4insite is it optimizes that facility workflow so you can get higher quality, you can have higher quality, higher safety, higher compliance, these are the things that they care about - the outcomes.

"Notice, we don't talk about feature function, we're talking about outcomes, we're driving higher quality.

"That's one example of a long-form. Again, it's a bit pedantic, it takes a lot of work to go through this."

Value proposition: security software example

"This is a security software company, I'm going to do the same thing."

"Here's the short version of the value prop statement.

"A little context, Absolute is a security software company, if you have a Windows laptop, maybe it's a Dell, maybe it's an HP or Lenovo, it's very likely you have this software running on your laptop, it's at the BIOS level, it's down almost at the metal.

"Now, this software is super important because it manages and secures data, devices, and applications that are unbreakable. The keyword here is unbreakable.

"Endpoint means the device, that could be your laptop as an example. Sometimes your laptop is off the internet, and you're not online. Even in that scenario, this laptop is unbreakable. Let's go through our three whys."

"The first ‘why’ is customers are looking to protect their data. They don't want to be hacked, they don't want information to get out. They don't want their devices to get hacked.

"Ransomware is a big deal now, you've all heard about the SolarWind's hack and many hacks going on that are damaging. So companies/organizations are afraid of being hacked. That's a big reason."

"Why Absolute? The keyword is unbreakable. It really is unhackable because it's down at that almost metal level. It's at the BIOS level, which hackers can't get access to."

"I mean, can you afford to be hacked and wind up on the front page? You don't want to be the next story in the Wall Street Journal or online media. This is a real fear that a lot of chief information security officers have.

"They don't want the board coming to them saying why didn't you do something about this? So this is a super compelling solution and this is a compact value prop statement.

"How do we get to this?"

"Here's the long-form version, I'll walk you through that.

"At Absolute, they're targeting the IT organization, the IT Asset Management Director, all security operations professionals. Those are the ones whose neck's on the line. They're the ones who will get fired if there's a breach or they're the ones who will get promoted if their environment is really secure and very locked down.

"What kind of organization? Absolute is not targeting small businesses and customers they're really targeting the largest organizations with 1000s of users.

"Who specifically? It's the IT organizations that are struggling with compliance, how do you protect all those endpoints? An endpoint again, is a laptop, typically a laptop, iPod, your phone, any device where you're doing work.

"How do you guarantee 100% of those devices are secure and compliant? Well, Absolute, and this is the category remember, they're a firmware embedded application, they're software but they're firmware embedded, unlike enterprise software security, for example, or unlike a SaaS cloud pure plane solution, this is embedded application. That's the category, that's the positioning.

"What Absolute involves is it finds those endpoints that are noncompliant, puts them back into compliance, and repairs them. That's the job the customer is trying to do.

"The IT person is trying to make sure all these devices are getting back in compliance because a lot of times they fall out of compliance, they don't have the latest patches, they don't have the latest antivirus, they don't have the latest OS updates.

"That's the job the IT person is trying to do and unlike traditional security patches, a lot of times they fall out of working, when you go offline, those security patches are not enforced. They're not working. They're not effective, or they're costly.

"So what is key here is it's persistent meaning even if you're online, offline, you reboot your machine, no matter what that Absolute embedded application is running, it's unbreakable.

"That's a really powerful value proposition statement, this idea of unbreakability. That's the core of the message here, the core of the value proposition is it's unbreakable, and that ensures a resilient environment. So as customers are changing their desktops, things are happening, no matter what that device is locked down.

"That's the long-form value prop we used. And again, this is used only by the product marketing team, this long-form in order to help the copywriters, the designers, the sales enablement team also come up with the copy blocks that are necessary."

Value proposition: enterprise services example

"Here's the third one."

"This is a large corporation, Unisys, and this is one of their services offerings. It's called Workplace Solutions. It's not software, it's services. It's actually a set of capabilities.

"The idea here is to engage, empower, and transform the digital workforce. Now everyone nowadays is digital, we're all pretty digital warriors. Some companies are more digital and more reliant on productivity. Let's talk about the why."

"Lots of companies are investing heavily in remote access, digital, digital everything, digital workflows. It's key to stay ahead of your competition."

"So you need a company that is experienced, it’s objective. We are a service partner to help deploy this full digital workplace."

"Well, your competition is already moving to digital, they’ve already transformed their enterprise. So let us help you catch up and overcome and exceed your competition."

"This is what the product marketing team and we here at Aventi crafted.

"We start off with the target customer, the ideal customer profile, we are looking for large organizations that are super dependent on so-called knowledge workers. These are people who are primarily delivering information and analysis and you're hiring them for very much their brains.

"Where is that important? In banks, insurance companies, manufacturing companies, high tech, life sciences, pharmaceuticals, all those companies are relying on scientists, engineering, financial analysts, so super important to make them productive.

"Those companies we are targeting only the ones that are committed to digital transformation, they may even have a Chief Digital Transformation Officer. So we can look for clues that this target ICP - ideal customer profile, is going after digital transformation.

"What is Unisys digital workplace? It's a services offering, starting off from advisory to implementation into managed services. This has a special meaning for customers who really need help, they're understaffed, they don't have the right expertise, they're short on IT and they just really need help.

"That's where services come in. Unisys has a proven capability, the whole digital lifecycle. Unlike traditional IT outsources that may be offshore. I won't name names, but you can guess a lot of the traditional IT outsourcing companies. What Unisys specializes in is industry experience, they have deep experience with financial services, banking, manufacturing.

"They're also neutral, meaning they're not trying to push one software solution or set of software, they're really doing what's right for the customer. They're persona-based so there are different buyers within these enterprises. And they offer some pretty deep security.

"These are some of the differentiators, all of these, by the way, have proof points behind them.

"Lastly, who cares? So this is all great, but what impact is it going to have? This goes to the heart of the value prop, the value prop is about business value. We're going to drive higher productivity, and that's going to also improve their capital expenditure and operating expenses.

"You do want to catch the 'so'; 'so' is the business benefit - but why does this matter?

"Those are three long-form examples of customer value propositions."

More value proposition examples

What is Apple's value proposition?

What is Unbounce's value proposition?

What is Slack's value proposition?

A strong value proposition is essential for any company, and can be achieved by completing four steps:

Research your audience

If you don’t understand what’s motivating your audience, how can you produce a value proposition that’ll resonate with them and convince them to buy your product?

Researching the market will allow you to identify what kind of language is appropriate to include to ensure that you’re able to pinpoint the USP of your product effectively.

If you have an existing customer base, conduct customer and market research sessions. This will provide you with essential information on how your product is already helping them in their daily lives.

Always ask questions that’ll help you establish:

• The type of language you should be using - craft your messages with prospective customers in mind, and speak their language. For example, if your target segment is 16-24-year-olds, colloquial language would be justifiable. On the other hand, if you’re creating messaging for middle-aged professionals, this wouldn’t be appropriate.
• Their problems and pain points - You need to present yourself as the definitive solution to the problem. If a prospect doesn’t consider you to be the best option on the market, they’ll take their custom elsewhere.

In some instances, feedback from your customers may indicate what you initially considered to be your main selling point isn’t held in the same esteem among your customers, in which case, you need to reposition your product and reevaluate your initial messaging.

Create buyer personas

Buyer personas are crucial, as they help you understand your customers from a human perspective - what motivates them to purchase a product? What features do they value most? These questions offer the information you need to create a value proposition that resonates and leads to them purchasing your product.

How to create buyer personas

Your personas need to be built with real information from real people - using your gut instinct won’t do. And remember, creating personas is all about understanding audiences you already know want to buy from you; not people you wish would buy from you.

Buyer personas can be created in four steps:

Step 1: conduct thorough research

Start by sifting through your records to see what kind of information you’ve already got on your customers. It’s unlikely you’ll stumble across everything you need to build a robust persona, but at the very least it’ll give you a jump start.

Some other outlets to gather information include:

• Adding relevant fields into any forms on your website;
• Communicate with sales teams - they’re talking to these people day in, day out after all;
• Introducing useful questions to your customer onboarding process; and/or
• Interviewing existing customers face-to-face or over-the-phone - this option will usually provide you with the richest information.

Tip: if you’re struggling to get people to say ‘yes’ to an interview start by making it clear it’s not sales-driven, give them flexibility around days and times, and think about adding an incentive.

If you’re picking up insights from several different sources remember to create some sort of forum for it all to be collated - it doesn’t need to be complicated, something as simple as an Excel spreadsheet with clearly defined headings would do.

There isn’t a set number of people you need to speak to. The more the better, but, as a rule, for a persona to be considered credible you should aim for between 5 - 10 matching patterns.

Step 2: understand your aims

The two core areas you should be aiming to understand are:

• What problems people are trying to solve, and
• What they want to achieve.

This kind of intel is golddust for your marketing efforts because it enables you to relate to their motivations and tailor-make your proposition to their wants and needs.

As well as A and B above though, get around a table at the outset and think about anything specific to your business that would come in handy - the last thing you want is to realize you missed something key later down the line.

Step 3: ask the right questions

There are endless questions you could ask, but here are a few ideas to help you hit various touchpoints and create a holistic picture:

Step 4: collate your learnings

By this point, you should have insights coming out of your ears. To turn them into something actionable and meaningful, start by grouping common characteristics - it’s important not to rush this stage or make any hasty generalizations.

Go through everything with a fine-tooth comb and only solidify an assumption if you’ve got enough evidence to go off.

To help you get from A to B, here’s an overview of the types of areas you’ll want your personas to cover:

• Job title and decision-making authority
• Gender, age, and geographic location
• Communication preferences
• What they’re struggling with
• Their overarching aims
• How your product or service helps
• How you should position your marketing messaging.

One of your buyer personas might look like this:

When you’ve identified your target audience, you need to develop your product messaging and product positioning . Your positioning statement will be used to communicate your value and highlight the benefits of your product, above those of your competitors.

Be sure to answer key questions, such as:

• What can you offer your customers?
• What value do you bring to the table?
• How will you solve the customer’s pain points?

Complete competitive intelligence

Never assume you’re the market leader. You need to conduct thorough competitive intelligence to establish what other businesses are doing, and if they’re offering something different, you need to develop your product to surpass the competition.

If a customer has a choice between two competing products doing the same thing, you’re relying on the toss of a coin. However, if you’re offering a differentiating feature, this can easily set you apart and see company revenue and customer retention increase, with customer churn falling.

Product marketers shared their competitive intelligence tips :

“Don’t be afraid to get help from other parts of your organization. Being able to get help from a Sales Engineer or a Developer while you’re reading technical documentation can save a ton of time and help you better understand different personas .”

Mindy Regnell, Marketing Insights Manager at BigCommerce

“Job postings reveal a lot about your competitor's product/growth strategy. They’ll often disclose which areas they're trying to invest in on a technology perspective or which customer segments they're trying to grow the business in the most.”

Julian Clarke, Senior Product Marketing Manager, Team Lead at Lattice

“Spend time getting to know the competitor from all angles: explore their website and gated assets as if you were a prospect, but also understand from their existing customers if the true product experience matches the initial marketing.”

Megan Magee, Product Marketing Manager at ServiceNow

“Start with your value proposition not mentioned by you, but by your customer. From there, understand why you don’t live up to that value proposition and where you can improve. Know your segment, know your buyer and persona.”

Hien Phan, Director of Product Marketing at Formation

“Social media is a goldmine of information.”

Avi Goldstein, Manager of Vendor Relations and Product Marketing at Hertz Furniture

“Keep an eye on your peers, but don't lose sight of why your company is unique. That's the story you want to focus on getting in front of your customers. We've found that when we check all of the right boxes, our customers spend less time comparing us to others and more time asking us what else can we do together?”

Jessica Munoz, Senior VP of Product Marketing at LiveIntent, Inc.

“Hearing what customers say has been the most fruitful competitor intel - using tools like Gong and G2 help to gather that info.”

Andrew McCotter-Bicknell, Product Marketing Manager at ZoomInfo

“Read the cons on all the reviews - even the 4-star review has something they don't like. I analyze this for trends so we can rebuke any objections to a sales pitch.”

Maureen West, Director of Product Marketing at 6sense

“Communicate with your customers who have switched from a competitor. They're the source and can articulate pain points which are more valuable than market-facing positioning from the competitor.”

Miles Price, Senior Product Marketing Manager at Sailthru

Identify the main benefit of your product

Having identified your buyer persona and competitors, you need to establish the main benefit of your product.

In some cases, there may be multiple reasons you think a customer should use your product or service.

For example, Uber acknowledges the frustrations associated with ordering a ‘traditional’ cab, before highlighting why users should use their app instead. They have three features that could be deemed USPs: a car comes directly to you, your driver knows exactly where to go, payment is cashless. However, the collective USP is that commuters can order a cab at the touch of a button - that’s what users are interested in most.

Statistics make the world of difference. Go above and beyond and provide specific stats to demonstrate how purchasing your product will enhance their lives and/or business.

Let’s stick with Uber to explain our point. If they said “Uber reduced commuting time in 2020” this doesn’t carry as much weight as “in 2020, Uber helped over 93 million users per month reduce their journey time by an average of 15 minutes”. The difference is there for all to see; statistics help you to express concrete value.

These four steps are key to creating a value proposition that ties together your customer needs, what the market offers, and what you’re offering.

How to test a value proposition

When you’ve created your value proposition, it’s important to test it to establish whether it resonates with your audience. Complete a test run by following these five simple steps:

• Define who you are targeting and what benefits you are bringing them
• Build a simple landing page
• Set up a cold email / LinkedIn outreach campaign
• Launch outreach to them
• Evaluate if the offer resonates or fails

A cold campaign serves as the true acid test for your value proposition; if you’re able to convert prospects you’ve never approached before, the chances are you’ve created a value proposition ticking all the right boxes.

Judge your value prop with an 8-point test

The Aventi group also shares some ways to test the impact of your value proposition.

"Now, one way to test your value proposition is we have a little eight-point test here. Eight questions to ask yourself after you've created the long-form version of the value prop or the short term, does it speak to a specific customer segment?"

1) Is it speaking to a specific customer segment or it it too generic to be useful?

"Don't be generic, like all large enterprises, we need to be specific, what industry, what size organization? What are some of the pain points? We don't want to be generic, we want to be specific."

2) Is it customer focused?

"Is it customer-specific? Is it all about you, the vendor or is it all about the customer and their pain point?"

3) Will it resonate with the target customer? How do we know?

"Does it resonate? This is where testing is important, we need to know that this value prop actually is resonating. How do you know?

"Because customers have told you, you vetted this with at least 10 quality qualitative interviews and maybe hundreds of quantitative surveys."

4) Does it differentiate from competitors including the "status quo?"

"Differentiation - make sure you clearly state including the status quo, including the do-nothing scenario where the customer thinks it's a pain but it's not enough to go do a purchase and then deployment, we don't want to go through the headache.

"Differentiation is important, sometimes your number one competitor is “do nothing”. It's people just saying I'm good enough."

5) Is it believable?

"Is it credible?"

6) Is it emotional - can a customer connect with it?

"Is it emotional? By the way, a lot of times I see value props that are really engineering, very heady, very intellectual, that's great. But what drives the buying process, the buying journey, the buyers’ journey is often the emotional driver.

"Sometimes in the security world, I deal with a lot of security, software companies, cybersecurity, and fear is a big driver. You don't want to be talking about fear but you want to understand that the chief information security officer, the IT folks, they're afraid of getting hacked.

"And that emotion is important to understand and acknowledge in your process. Sometimes emotion, maybe excitement, and maybe power or confidence. Tap into the emotion in your value prop."

7) It is using customer language, not jargon?

"Sometimes we tend to speak jargon, I deal with a lot of B2B technology companies and they use a tonne of acronyms. Try to stay away from that, use words that customers use. Be careful about that."

8) It is clear, compelling, and credible?

"Lastly, is it compelling? Is it credible? Is it clear? Your message testing will really confirm that."

Looking for further inspiration? We spoke with Nisha Goklaney, Marketing Director at Sage , who gave her perspective on how to create a killer value proposition for your customer.

Get expert advice on key topics such as:

• How to create a value proposition framework
• Examples of value propositions that work
• Essential steps to consider when getting started with value propositions

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This course will enable you to confidently:

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How to Create a Unique Value Proposition + Examples

Lisa Furgison

10 min. read

Updated May 10, 2024

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

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

• What is a unique value proposition (UVP)?

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

In a nutshell, your UVP covers: 

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

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

• What is the purpose of a value proposition?

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

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

• How do you write a unique value proposition?

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

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

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

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1. Define your target market

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

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

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

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

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

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

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

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

3. Define the pain point your product or service solves

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

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

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

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

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

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

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

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

5. Craft a single message

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

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

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

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

• 4 examples of great value propositions

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

The Mast Brothers Chocolate

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

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

Dollar Shave Club

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

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

Ellusionist

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

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

Palo Alto Software

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

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

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

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

• Create a compelling value proposition

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

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

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

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

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Value Proposition

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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• Building Your Business
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• Business Plans

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.

Value Proposition Examples: 15 Companies That Do It Right

December 28, 2023 By John Lincoln

What is the value of your brand to customers? This is the question that a value proposition answers. It’s a core piece of how you differentiate your company in the market and defines why someone would want to become your customer versus others.

What You’ll Learn:

• What is a Value Proposition?

Who Needs a Value Proposition and Why?

• How to Create Your Value Proposition in 5 Steps 
• Compelling Value Proposition Examples  

FAQs About Value Propositions

So, what is a value proposition.

Value propositions in marketing are short, to-the-point explanations that convey value. Often, they become synonymous with the brand like Vimeo’s “The power of video at your fingertips,” or WordPress’ “Build simply.”

As you can see, these statements are simple and immediately display what’s in them for customers. What’s important in creating one is understanding what a value prop is not. It’s not a slogan, tagline, Vision Statement, or Mission Statement.

• Slogans are catchy campaign-specific phrases.
• Taglines are short phrases that define aspects of a brand and are more of a concept.
• Vision Statements are aspirational and include the company’s current and future objectives.
• Mission Statements are short explanations of a business’s reason for existence, describing its purpose and objectives.

These branded phrases don’t contribute to conversions, which is a primary purpose of a value proposition. Here’s an example to showcase the differences from Nike .

• Slogan: “Twice the guts. Double the glory.”
• Tagline: “Just Do It”
• Vision Statement: “We see a world where everybody is an athlete — united in the joy of movement.”
• Mission Statement: “To bring inspiration and innovation to every athlete in the world.”
• Value Proposition Statement: Customizable performance or lifestyle sneakers with unique colorways and materials.

Every brand needs a unique value proposition. Namely, because they are an expression of intent and a “promise” to customers relating to how a company’s products or services will serve them. They focus on the heart of your audiences’ challenges and how you can solve them.

You’re highlighting your distinct value, and it becomes a foundation for inbound and content marketing strategies. They are also instrumental in brand awareness marketing .

This tangible statement delivers to customers what they can expect from your solutions. It can include features, social proof, or other specific benefits.

A well-defined and impactful one can:

• Support efforts from marketing and sales.
• Help with the consistency of your messaging across the company.
• Improve customer engagement and sentiment.
• Address specific needs that are pain points for customers.

Now, let’s review how to write a value proposition statement.

How to Create Your Own Value Proposition

If you’ve never developed a value prop or are in a creative brand refresh mode, follow these four steps.

Step 1: Identify the Major Problem

Start by asking, “What’s your customer’s main problem?”

You may already have internal resources to source this, but it will likely require deeper research to understand your personas and their needs.

You can get input from others in the company, including sales, customer service, and other roles that interact with customers regularly.

You can move to the next step once you know what your customers seek.

Step 2: Identify Your Products’ Benefits

Next, you’ll analyze the benefits of your solutions. List out every product or service you offer and describe its primary benefit.

Whatever you list should focus on the customers’ needs, not your company’s. Be concise and specific.

Step 3: Decipher What Makes Benefits Valuable

After noting benefits, you’ll add more context to explain why it matters to your customers. Keep it short with one or two simple sentences.

Step 4: Connect Benefits and Compare Pain Points

Review your benefits and compare them to your customers’ problems. Do they align? Will any of your benefits speak to your customers’ problems?

If so, you are in a position to establish the value proposition to differentiate you from your competitors.

Step 5: Differentiate Your Company From Competitors

The key to a value proposition is that it shows why your company, product, or service is so valuable. What is it about you that makes you the right choice to solve your customers’ problems?

Work all of these elements into your value proposition. 

Once you’ve completed these steps, you can write your value proposition using one of three methods:

• Steve Blank Method: “We help (x) do (y) by doing (z).”
• Geoff Moore Method: “For [target customer] who [needs or wants X], our [product/service] is [category of industry] that [benefits].”
• Harvard Business School Method: “What is my branding? What does the customer hire my brand to do? What companies and products compete with my brand to do this job for the customer? What sets my brand apart from competitors?”

All three methods are effective ways to state a value proposition. You just have to choose the right one for your business.

Compelling Value Proposition Examples

The Value Proposition : “We make unique watches from really cool things.”

Why It Works : It describes what they do and how they do it.

It’s the first statement on their website, and if you read further, it goes deeper into how they turn historical physical materials into watches.

Not only do they do a great job of presenting value upfront, but they also continue to do so throughout the website by reinforcing the core values of craftsmanship and recycled materials.

Example #2: Stripe

The Value Proposition: “ Millions of companies of all sizes use Stripe online and in person to accept payments, send payouts, automate financial processes, and ultimately grow revenue.”

Why It Works: This example accomplishes several things:

• It draws the audience in with a headline (“Financial infrastructure for the internet”) that clues you into the overall theme of the business.
• It’s declarative as “for the internet.” There’s no room for argument, and it positions the brand as a leader among competitors.
• It follows up with a clear explanation of exactly who the service is for (online businesses) and what it does (handles high-traffic online payments).

Stripe successfully drives home that it’s a platform for businesses driven by innovative tech by leveraging top-name clients and simple graphic design. Every choice made on the website supports the business’ value proposition.

#3: BetterHelp

The Value Proposition: “ With our therapists, you get the same professionalism and quality you would expect from an in-office therapist, but with the ability to communicate when and how you want.”

Why it Works: Mental health is no longer taboo, and people seek resources and the ability to connect virtually. The site immediately addresses the online component and aligns with being a convenient way for people to get therapy.  

Example #4: Less Accounting

The Value Proposition: “ Straightforward solutions for freelancers, consultants, & small business owners to manage their own bookkeeping or hire us to help.”

Why it Works: Less Accounting’s value proposition example works because:

• It immediately addresses who the software is for and that they don’t have the time or resources to dedicate to bookkeeping.
• As you scroll down the page, it presents common customer pain points in a modern Q&A format. It’s different, and I like it. It addresses some of its users’ most common questions and drives home its benefits, all above the fold.
• The website home page also showcases customer testimonials and reiterates the trust factor, which is critical in discussing money.

Less Accounting has done its market research and knows its audience.

As you read the page, the content reinforces the idea of simplicity. They tout themselves as the “World’s Simplest,” clearly separating itself from other leading accounting software by highlighting its unique benefits.

Value Proposition Example #5: Skillshare

The Value Proposition: “ Explore your creativity with thousands of hands-on classes.”

Why it Works: Skillshare makes its purpose clear: it’s an online database of classes designed for anyone to take.

The first sentence appeals directly to its target audience: creative minds who desire to learn and improve, perhaps without the resources to do it. Further down, it expands the value prop in a list of action-focused ways to get creative—learn, tune in, go from dabbler to master, and connect.

It serves up all the valuable ways someone can use their platform to become better at anything.

Example #6: Tortuga

The Value Proposition: “ Bring everything you need without checking a bag.”

Why it Works: This one focuses entirely on the brand’s biggest benefit: the ability to pack everything for a trip in one bag.

The target audience here is young backpackers or frequent weekend travelers, and it addresses the most significant obstacle most travelers face: who wants to pay bag check fees?

Additionally, putting the star review right at the top of the website delivers social proof that its ideal customers deem essential.

Example #7: Bitly

The Value Proposition: “ Create short links, QR Codes, and Link-in-bio pages. Share them anywhere. Track what’s working, and what’s not. All inside the Bitly Connections Platform. ”

Why it Works: Known for reducing the size of lengthy URLs, Bitly is all about keeping everything short and sweet. So, it’s no wonder that the company’s value proposition would also reflect these attributes.

The words that are the meat—create, share, and track. It also conveys how simple it is to do all these things within one platform.

Value Proposition Example #8: Mint

The Value Proposition: “ Managing money, made simple.”

Why it Works: Mint’s value proposition immediately captures your attention with its simplicity. To support the key concept of managing, they also include that it’s the number one downloaded financial app and a testimonial. Reviews and FAQs also continue this focus throughout the site.

Example #9: Imperfect Foods 

The Value Proposition : “Groceries that help you fight food waste.”

Why it Works : The way consumers grocery shop has forever changed, with more people shopping online. Many eco-conscious people are also trying to fight food waste. The message is straightforward and illustrates that they are sustainable, affordable, and convenient.

Value Proposition Example #10: Trello

The Value Proposition : “Trello brings all your tasks, teammates, and tools together.”

Why it Works : Software like Trello , which is part project management and part collaboration, is more critical than ever with many remote teams. Many companies are looking for a turnkey solution instead of using multiple systems. The company conveys that you can have it all in one spot.

Example#11: Pagely

The Value Proposition : “Managed WordPress hosting solutions you can trust.”

Why it Works : The opening sentence and the paragraph under focus on the trustworthiness of their managed services. It’s an important component when discussing a website. The brand also talks about uptime and durability, two things every brand wants in a website partner.

Example #12: EveryPlate

The Value Proposition : “Make affordable, crowd-pleasing meals at home.”

Why it Works : Cooking at home needs to be simple, tasty, and cost-effective for most people. They also don’t have the time to meal plan, and EveryPlate can handle that. Under the main header, they also continue this theme by spelling out how it works and reiterating that it saves time and money and the cooking is easy.

Example #13: Evernote

The Value Proposition : “Tame your work, organize your life.”

Why it Works : Evernote is a smart app that makes notetaking, task management, and scheduling a breeze. The company realizes that we’re all drowning in stuff to do, and they can relieve some of that stress. The rest of the home page continues the theme of keeping you organized and uses the clever phrase, “Find your productivity happy place.”

Value Proposition #14: Canva

The Value Proposition : “Canva makes it easy to create professional designs and to share or print them.”

Why it Works : Canva is the non-designer’s go-to for designing just about anything. The value proposition emphasizes that it’s easy to use while noting that the finished products are professional. It also tells you what you can do with what you create. The imagery gives visitors a preview of all the possibilities while leaving lots of white space so as not to overstimulate.

Value Proposition Example #15: Studio Neat

The Value Proposition : “We design tools for people.”

Why it Works : This simple brand has a very minimal value proposition. Further down, they explain a bit more as a statement from the founders, “We are two designers who enjoy making simple products that solve problems.” They don’t need to say much more and let the products speak for themselves. 

1. What is a value proposition?

A value proposition is a statement of what’s different and highly valuable about your product.

2. Why is a value proposition essential for businesses?

A value prop demonstrates your “promise” to customers, highlighting what you do and how it serves them. It can address needs and pain points and is vital to converting prospects.

3. How do value propositions differ across industries?

Value props are all unique and focus on who the audience is and their specific needs. Some of the biggest differences are B2B vs. B2C. The former is focused on solving business problems, while the latter involves a consumer’s needs.

4. What are common mistakes to avoid when creating a value proposition?

It shouldn’t be salesy or all about the brand. It should also identify and speak to the customer. Long and complicated value props are likely to become confusing. It also must be unique and not generic.

5. How often should a value proposition be revisited or revised?

It depends on when things “change” internally, such as adding new products, moving into new markets, or during a complete brand refresh. At a minimum, you should freshen them up annually.

6. How do value propositions relate to brand positioning?

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10 free catering business plan templates and examples

• Published on February 8, 2024
• by Patricia Fernandes
• Last updated: 1 month ago

When starting a catering business, it’s essential to have a well-structured business plan in place. A comprehensive business plan not only helps you outline your goals and strategies but also serves as a detailed roadmap for success. However, creating a business plan from scratch can be a daunting task. That’s where catering business plan templates come in handy. Understand the importance of a well-devised plan for your catering venture , as it can significantly improve your chances of overcoming challenges and achieving long-term success.

Once you’ve found a suitable template, the next step is to customize it to fit your unique catering business. This involves filling in the specific details of your business, such as your target market, menu offerings, pricing, marketing strategies, and financial projections. Customizing key elements of the template allows you to tailor it to your specific goals and vision, ensuring that your business plan accurately reflects catering businesses. Understanding the challenges that come with taking on the catering industry, developing a strategy through a tailored catering service business plan from the onset can significantly influence your path towards achieving long-term success and stability.

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Why Creating a Catering Business Plan is Essential

In the catering industry, having a well-thought-out business plan is crucial for success. It provides a roadmap for your business and helps you make informed decisions. Here are some key reasons why creating a catering services business plan is essential:

Defining Your Goals: A business plan allows you to clearly define your goals and objectives. It helps you identify what you want to achieve with your catering business.

Understanding Your Target Market: By conducting market research and analysis, you can gain valuable insights into your target market. This information will help you tailor your services to meet the needs and preferences of your customers.

Outlining Strategies: Your business plan serves as a guide to outline the strategies you will implement to achieve profitability. It includes details on your menu, pricing, marketing tactics, and financial projections.

Setting Yourself Up for Success: By carefully considering all aspects of your business and planning for potential challenges, you can set yourself up for long-term success in catering companies.

If you’re dreaming of starting your catering biz, you’re in the right place. We selected 10 catering business plan templates to help you get from daydreaming to doing. We’ve broken them down into three categories: Basic, Intermediary, and Complete, so you can find just what you need, no matter where you’re at in your catering business planning process.

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Basic Catering Business Plan Templates

Template 01: the quick start guide.

This business plan template is like the fast food of business plans – quick, easy, and gets the job done. It’s perfect if you’re just getting your feet wet. Considering launching a catering service? Ensure you have a robust plan for your catering venture by understanding the essential components and pitfalls to steer clear of.

Use the Quick Start Guide Template

Template 02: The Budget Buddy

Focused on the numbers, this one helps you figure out your starting costs and financial plan for how you’ll keep the lights on.

Use the Budget Buddy Template

Template 03: The Startup Planner

This template helps you outline your business concept’s initial needs, legal structure, and pricing strategy.

Use the Startup Planner Template

Intermediary Catering Business Plan Templates

Template 04: conscious catering strategy.

Focusing on the growing trend for healthy and dietary-specific menus, this sample menu template is perfect for caterers wanting to market and specialize in health-conscious catering industry food offerings. Learn to adapt and enhance your catering business plan to cater to health-conscious consumers, ensuring the long-term growth and success of your business.

Use the Conscious Catering Strategy Template

Template 05: Full-Service Catering Plan

Designed for established catering services and catering companies ready to expand, this template focuses on operational and pricing strategies, detailed menu planning, and advanced, marketing strategies and techniques. It’s ideal for caterers looking to scale their operations and refine their service offerings. Discover strategies on constructing a lucrative catering business plan , with guidance on enhancing operations, menu selections, and marketing approaches. Visit Metrobi’s website to delve deeper.

Use the Full-Service Catering Plan Template

Template 06: Catering Growth Accelerator

Unless you’re planning to do everything yourself (spoiler: not a good idea), this template helps you plan out your dream team.

Use the Catering Growth Accelerator Template

Complete Catering Business Plan Templates

Template 07: the full feast.

This is the big one – a comprehensive marketing plan for a full catering company template that covers everything from A to Z. If you’re ready to dive deep, this is for you. Planning to launch or manage a catering service? Ensure you have a detailed catering service business plan to guide you through every step.

Use the Full Feast Template

Template 08: The Event Ace

Specializing in events? This template focuses on planning for different types of clients at events and managing bookings at networking events.

Use the Event Ace Template

Template 09: The Growth Guru

Thinking ahead? This template helps you map out marketing strategy detailed plan for how you’ll expand and grow over time.

Use the Growth Guru Template

Template 10: The Risk Wrangler

Every serious business owner faces challenges. This template helps you identify potential risks to business goals and plan how to handle them.

Use the Risk Wrangler Template

Taking Action and Customizing Your Business Plan

Now is the time to take action and start creating your catering business plan. While examples and templates can be helpful starting points, it’s important to customize them to fit your unique business needs. Remember, your catering business plan template is a living document that can be updated and adjusted as your business grows and evolves. Learn how you can adapt and refine your catering business plan to ensure it aligns with your goals, enabling sustainable growth and success in the competitive catering landscape. Explore strategies to advance and update your catering business plan , positioning your venture for enduring prosperity and distinction in the bustling catering market.

Turning Your Catering Company Dreams into Reality

Starting a catering business is super exciting, but it can also be a bit overwhelming. That’s where the catering business plan template comes in. They’re like your road map to success, whether you’re just starting to sketch out your catering equipment ideas or you’re ready to launch. So, grab the first operations plan template that fits your stage and start cooking up your new catering business and plan!

Why you must have a solid catering business plan

How will your catering business plan evolve as you grow your catering business

How to create a profitable catering business plan

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What’s the Employee Value Prop of Your Organization?

Published: Aug 06, 2024 By Bob Helbig

Each employee in an organization brings unique connections, experiences, and skills. Because people drive any organization, employers provide employees a value proposition in return for their commitment and motivation.

So, what is that value proposition? Retaining and recruiting t op talent depend on it. Current employees and job seekers want to know what they are getting for their efforts, especially compared with the competition.

Imagine a highly skilled job seeker is deciding between two employers. What critical differences make up that unique value proposition? Things such as pay, benefits, training, and culture are important so skilled candidates can decide which employer is the right fit.

At your organization, defining the employee value proposition is essential for recruitment and long-term engagement. To employees, it’s all about “Why should I apply here?” and “Why should I stay?”

Done right, a strong, effective employee value proposition can serve employees and employers with:

• Improved company culture
• Improved employee engagement
• Improved employer branding
• Improved recruitment process
• Improved transparency and expectation setting
• Reduced recruitment and turnover costs

The most successful employee value propositions revolve around pay, benefits, career development, environmental components, and workplace culture. These five building blocks cover everything employees want to know about your company.

Compensation: Compensation, pay, salary, whatever you want to call it — it’s the subset of employee value proposition that people usually talk about first. Employers commonly include salary information in job posts. Although not everyone does this, it shows advancements in fairness and pay transparency, which also are critical components of compensation. A great employee value proposition also defines salary satisfaction and promotion expectations so that everyone is on the same page.

Benefits: Consider paid time off, holiday pay, workplace flexibility, retirement savings, and health and wellness coverage. If the benefits list seems too vanilla, explore competitors’ careers pages for inspiration.

Career advancement: Employees and job seekers want as many training and development opportunities as possible. Wise employers strategically use career development to help employees and the business grow together, enticing candidates even more.

Work environment: Is it in person? Remote? Hybrid? And if it is in-person, what amenities do you offer to improve employee recognition and engagement? Communicating a positive work environment with clear physical workplace flexibility expectations helps recruiting teams hire people who are a good fit for the company, boosting future retention.

Culture: It’s among the most important parts of a workplace. If your workplace cultivates a unique and empowering culture, it should be part of your employee value proposition. Knowing that an employer has great leadership, employee appreciation initiatives, and work-life balance make candidates want to apply themselves and their skills to your mission.

Bob Helbig is media partnerships director at Energage, a Philadelphia-based employee survey firm. Energage is The Washington Post’s survey partner for Top Workplaces. To nominate your company as a Top Workplace, go to https://www.washingtonpost.com/nominate .

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How to maximize investment returns in commercial real estate.

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Matias Recchia is Co-Founder and CEO of Keyway , the AI- powered real estate investment manager.

In commercial real estate, investors monitor multiple financial metrics to assess the quality of an investment, such as capitalization rates, internal rates of return and cash-on-cash returns. These financial metrics are used to acquire, exit and value commercial real estate assets and measure their success. Investors want to maximize valuation upon the sale of an asset, but they’re not always sure how to drive investment returns through financial, strategic and technological enhancements.

Now, with the proliferation of artificial intelligence and machine learning, investors can automate manual tasks, aggregate public data and make data-driven decisions quickly and with fewer resources. This is something I've seen firsthand through my own company, which provides AI tools for real estate teams and investors. Let’s explore how investors can maximize their net operating income (NOI) in commercial real estate to increase the value of their underlying assets—and what they should know if they plan to use AI to help.

1. Strategic Acquisition

Location, location, location.

Choosing the right location is pivotal in real estate investment. High-demand areas with economic stability and rent growth, proximity to key amenities, transportation, central business districts and good schools are important to most buyers and tenants. Locating properties in these areas can help establish a foundation to drive valuations and rent yields higher. Investors should conduct market research to help identify neighborhoods and properties that have the potential for growth.

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Best 5% interest savings accounts of 2024, 2. financial levers.

NOI is a financial metric, so, naturally, pulling financial levers is one of the best ways to drive NOI. Before agreeing to acquire a commercial real estate property, conducting detailed financial due diligence is critical. This includes reviewing financial statements, scrubbing cash flow, calculating debt service coverage ratios and assessing cap rates. Investors should also consider potential economic shifts that could impact rent and property value, including interest rates and inflation.

While financial due diligence can mitigate risk before acquiring a property, ongoing financial analysis is also essential to drive profitability. Once you own a property, implement strict financial controls to stabilize and improve NOI. Review each line item of operating expenses, make energy-efficient upgrades and rightsize staff and service contracts. I also recommend evaluating current rent, assessing rent increases and evaluating other on-property revenue enhancement opportunities, such as parking, that could increase profitability.

3. Property Upgrades

Improving the condition of the property and optimizing space usage are two smart ways to help increase NOI. For example, investors can yield a higher NOI through direct physical improvements on the property. This can lead to higher rents, increased tenant satisfaction and lower turnover. What are some high-impact improvements? Consider updating the facade and signage, improving landscaping, offering modern and smart appliances, and modernizing common areas.

4. Risk Control

Protecting your commercial real estate investment is as important as operating your assets. You have to protect the value of your property from a legal and risk perspective. Conduct a deep legal review to ensure the property complies with all local ordinances, laws and codes. This includes the physical building; environmental, social and governance pursuits; and understanding how modifications might impact legal requirements.

Also, NOI can be adversely impacted if you don’t have robust risk management strategies in place. Consider whether your insurance protects against unforeseen losses, and regularly conduct compliance audits to ensure your property meets all regulatory requirements.

5. Exit Strategies

Investors often think about an exit prior to an acquisition. It’s never too early to start thinking about a potential sale of your commercial real estate asset. The foundational improvements you establish early can set the stage for NOI improvement over time, which ultimately will drive your exit valuation upon sale. While it’s challenging to time the market, investors can monitor local market trends with real-time data analytics.

Leveraging AI To Help

Simply put, if you want to use AI as a commercial real estate investor, you need an AI strategy. How are you using AI to acquire and manage properties? While pen and paper or spreadsheets might still be used by some investors, I believe the future is gravitating toward AI. Generative AI and machine learning can help investors with many of the tasks I've outlined above, including forecasting local market conditions; pricing rent based on property, neighborhood and broader market dynamics; reviewing and managing contracts and more.

However, commercial real estate companies and operators who are considering AI for their business should be aware of several key challenges. First, real estate data can be fragmented and incomplete. Therefore, ensure your data is clean and organized before relying on its outputs.

Second, test your AI analyses alongside traditional analytical methods to ensure your results are accurate. If there is a discrepancy, assess your AI solution, the underlying data or both.

Third, when choosing an AI solution, ensure the solution integrates seamlessly with your existing data sources and current platform. If you are using, or plan to use, an outsourced AI vendor, you should also ensure the AI vendor provides robust and comprehensive training and support. Your real estate team will only be able to leverage the AI solution seamlessly when they understand its comprehensive features.

Maximizing NOI in commercial real estate is not solely financial and managerial; shrewd investors can also leverage technology to gain a competitive edge. By adopting these strategies, investors can enhance the profitability and value of their real estate assets and maximize NOI—even in a competitive market.

The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

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Real estate | ask a real estate pro: how can i structure buying a home while keeping my inheritance value outside of our marital property.

A:  The question of unequal contribution frequently arises in my practice. I usually see it in one of two contexts. The first variation is like yours, where one of the spouses contributes the down payment using money they inherited or had before the couple married. The other is a situation that usually involves a second or third marriage where each spouse wants to ensure their children from a prior marriage inherit their half of the marital home.

Fortunately, with proper planning, there are several ways to set this up, depending on your circumstances.

For many people, a trust can be a powerful and flexible solution.  A trust agreement is a legal arrangement that allows you to own property and manage it according to terms you agree upon. This flexibility lets you control your financial planning, allowing you to decide, for example, that when the property is sold, you or your heirs get the down payment back, the remaining mortgage gets paid off, and you split the remaining equity with your wife.

Instead, you could execute a post-nuptial agreement. This type of agreement is similar to a pre-nuptial agreement, but it is created after the couple is married to outline the division of assets and financial responsibilities in case of a death or divorce. It is used to protect individual assets, clarify financial rights and obligations, and make a clear plan for asset distribution to reduce conflict in the future.

I have also seen the spouse contributing most of the down payment, treating it like a loan, and recording a mortgage on the property. This option may not be available to you for various reasons, such as restrictions from the new bank loan you are getting, and may have tax disincentives. However, in the right situation, this could be a good solution.

Given your situation and the various options available, it’s important to seek the assistance of an appropriate professional to guide you through the legal intricacies and find the best solution for your circumstances.

Board-certified real estate lawyer Gary Singer writes about industry legal matters and the housing market. To ask him a question, email him at  [email protected], or go to SunSentinel.com/askpro. 

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Business Restructuring Review Vol. 23 No. 4 | July–August 2024

In This Issue:

U.S. Supreme Court Bankruptcy Update

The U.S. Supreme Court handed down three bankruptcy rulings to finish the current Term. The decisions address the validity of nonconsensual third-party releases in chapter 11 plans, the standing of insurance companies to object to "insurance neutral" chapter 11 plans, and the remedy for overpayment of administrative fees in chapter 11 cases to the Office of the U.S. Trustee. [ Read more … ]  

Ohio Bankruptcy Court Offers Guidance on (the Amended) Ordinary Course Payment Preference Defense

In In re ASPC Corp. , 658 B.R. 455 (Bankr. S.D. Ohio 2024), the U.S. Bankruptcy Court for the Southern District of Ohio addressed a preference defendant's burden of proof under the amended section of the Bankruptcy Code shielding from avoidance transfers made to pay debts incurred in the ordinary course of business of the debtor and the transferee. The court granted summary judgment to a creditor in avoidance litigation, ruling that the defendant need only demonstrate that the payment satisfied one—but not both—of the tests stated in section 547(c)(2). According to the bankruptcy court, "[t]his case illustrates the importance of [the 2005 amendment's] replacement of the conjunctive 'and' with the disjunctive 'or' between the subjective and objective tests for the ordinary course of business defense."           [ Read more … ]

First Impressions: Seventh Circuit Rules that the Bankruptcy Code's "Safe Harbor" for Securities Contracts Transfers Applies to Non-Public Securities

Section 546(e) of the Bankruptcy Code's "safe harbor" preventing avoidance in bankruptcy of certain securities, commodity, or forward-contract payments has long been a magnet for controversy. Several noteworthy court rulings have been issued in bankruptcy cases addressing the scope of the provision. One of the latest chapters in the ongoing debate was written by the U.S. Court of Appeals for the Seventh Circuit in Petr v. BMO Harris Bank N.A. , 95 F.4th 1090 (7th Cir. 2024). The Seventh Circuit affirmed a district court ruling broadly construing the section 546(e) safe harbor to bar a chapter 7 trustee from suing under state law and section 544 of the Bankruptcy Code to avoid an alleged constructively fraudulent transfer made by the debtor shortly after it had been acquired in a leveraged buy-out. Among other things, the Seventh Circuit agreed with the district court's conclusions that: (i) the safe harbor is not limited to transfers involving publicly traded securities; and (ii) section 546(e) preempted the trustee's claim to recover the value of the transfer under section 544 and state law. [ Read more … ]

Third Circuit: Unsecured Claim for Royalties from Intellectual Property Purchased by Debtor Discharged Under Chapter 11 Plan

Mitigating risk of loss associated with a bankruptcy filing should be an element of any commercial transaction, especially if it involves a sale or license of intellectual property rights. A ruling recently handed down by the U.S. Court of Appeals for the Third Circuit provides a stark reminder of the consequences of when it is not. In In re Mallinckrodt PLC , 99 F.4th 617 (3d Cir. 2024), the Third Circuit ruled that, in the absence of any security, a claim asserted by the seller of intellectual property rights for royalties payable under the sale agreement was a prepetition unsecured claim that was discharged when the bankruptcy court confirmed the debtor-buyer's chapter 11 plan. [ Read more … ]

Circuit Split: Eleventh Circuit and Second Circuit Disagree on Eligibility Requirements for Chapter 15 Debtors

Courts disagree over whether a foreign bankruptcy case can be recognized under chapter 15 of the Bankruptcy Code if the foreign debtor does not reside or have assets or a place of business in the United States. In 2013, the U.S. Court of Appeals for the Second Circuit staked out its position on this issue in Drawbridge Special Opportunities Fund LP v. Barnet (In re Barnet) , 737 F.3d 238 (2d Cir. 2013), ruling that the provision of the Bankruptcy Code requiring U.S. residency, assets, or a place of business applies in chapter 15 cases as well as cases filed under other chapters. The U.S. Court of Appeals for the Eleventh Circuit split with the Second Circuit on this controversial issue in In re Al Zawawi , 97 F.4th 1244 (11th Cir. 2024). Distancing itself from Barnet , the Eleventh Circuit affirmed a district court ruling that chapter 15 has its own eligibility requirements, and that the eligibility requirements for debtors in cases under other chapters of the Bankruptcy Code do not apply in chapter 15 cases. [ Read more … ]

New York Bankruptcy Court: Lockup Provision in Proposed Settlement Agreement Violated Bankruptcy Code's Disclosure and Solicitation Requirements

The U.S. Bankruptcy Court for the Southern District of New York addressed the propriety of restructuring support, plan support, or lockup agreements in In re GOL Linhas Aéreas Inteligentes S.A. , 2024 WL 1716490 (Bankr. S.D.N.Y. Apr. 22, 2024). The court approved a global settlement among the chapter 11 debtors and various aircraft lessors, but denied approval of an impermissible "lockup" provision in the settlement agreements, obligating the counterparties to support any chapter 11 plan later filed by the debtors provided the plan embodied the terms of the settlement. Although the bankruptcy court declined to adopt a "bright-line" prohibition of such agreements in all cases, it emphasized that the Bankruptcy Code's disclosure and vote solicitation requirements are paramount. The court also concluded that the lockup provision before it failed to pass muster because, unlike most typical lockup or "plan support agreements" or "restructuring support agreements," the provision did not specify the terms of a proposed chapter 11 plan, but merely the terms of the proposed settlement, together with a requirement that any plan could not be inconsistent with those settlement terms. [ Read more … ]

Newsworthy:

Heather Lennox  (Cleveland/New York) , Bruce Bennett  (Los Angeles) , Kevyn D. Orr  (Washington) , Gregory M. Gordon  (Dallas) , Carl E. Black  (Cleveland) , Daniel J. Merrett  (Atlanta) , Robert W. Hamilton  (Columbus) , Corinne Ball  (New York) , Gary L. Kaplan  (Miami) , Thomas M. Wearsch  (New York/Cleveland) , Brad B. Erens  (Chicago) , Jeffrey B. Ellman  (Atlanta) , and Dan T. Moss  (Washington/New York) were recognized as leading lawyers in the area of Bankruptcy/Restructuring in the 2024 edition of Chambers USA . Bruce Bennett and Gregory M. Gordon received a "Band 1" designation. Heather Lennox was ranked as a "Star Individual." Corinne Ball was designated a "Senior Statesperson."

Thomas M. Wearsch  (New York/Cleveland) spoke on a panel discussing "International Restructuring in the Automotive Sector" on June 4, 2024, at the International Bar Association Annual Meeting in Zurich, Switzerland.

Dr. Olaf Benning  (Frankfurt) , Markus Ledwina  (Frankfurt) , and Alexander Ballmann  (Munich) were recognized as leading lawyers by The Best Lawyers in Germany ™ 2025 in the practice area Restructuring and Insolvency Law.

On June 10, 2024, Dan T. Moss  (Washington/New York) was on a panel discussing "Insolvency Proceedings Without Solvency?" at the 24th Annual International Insolvency Conference in Singapore.

An article written by Daniel J. Merrett  (Atlanta) titled "New York Bankruptcy Court: Setoff and Unjust Enrichment Cannot Be Asserted as Affirmative Defenses in Bankruptcy Avoidance Litigation" was posted on June 11, 2024, on the Harvard Law School Bankruptcy Roundtable .

On May 17, 2024, the U.S. Bankruptcy Court for the District of Delaware recognized and enforced a restructuring plan for Spark Networks SE ("Spark") under chapter 15 of the Bankruptcy Code, marking the first such order for a plan formulated under Germany's Corporate Stabilization and Restructuring Act ("StaRUG"). Dating platformer provider Spark received approval for its StaRUG plan from a German court in January and successfully defended an appeal by certain shareholders in April. Introduced in January 2021, StaRUG allows companies to impose a compromise or arrangement, including a restructuring of liabilities, upon all or a subset of the creditors. The plan waives more than $30 million of secured debt and $13 million of unsecured debt, and provides approximately $24 million in liquidity support. The Jones Day professionals advising Spark included Dan T. Moss  (Washington/New York) , Olaf Benning  (Frankfurt) , David S. Torborg  (Washington) , Colleen E. Laduzinski  (Boston/New York) , Ryan Sims  (Washington) , S. Christopher Cundra IV  (Washington) , Nick Buchta  (Cleveland) , Richard H. Howell  (Washington) , Elizabeth A. Dengler  (Boston) , and Alexandra Levay  (Boston) .

An article written by T. Daniel Reynolds  (Cleveland) titled "Fifth Circuit: Recent U.S. Supreme Court Ruling Did Not Alter Mootness Requirements for Unstayed Bankruptcy Sale Orders" was published on June 4, 2024, by Lexis Practical Guidance .

An article written by Dan T. Moss  (Washington/New York) , Heather Lennox  (Cleveland/New York) , David S. Torborg  (Washington) , and Vinay Kurien  (Singapore) titled "Third Circuit Updates Its Standard for Granting Comity to Foreign Bankruptcy Proceedings" was published on June 9, 2024, by Lexis Practical Guidance .

An article written by Corinne Ball  (New York) , David S. Torborg  (Washington) , and Dan T. Moss  (Washington/New York) titled "Delaware Bankruptcy Court: 'Center of Main Interests' for Purposes of Chapter 15 Recognition Must Be Determined on Debtor-by-Debtor Rather than Enterprise Group Basis was published on June 9, 2024, by Lexis Practical Guidance .

An article written by T. Daniel Reynolds  (Cleveland) titled "Ability of Creditors' Committees to Prosecute Estate Claims Given a Boost in Delaware Bankruptcy Courts" was published on June 4, 2024, by Lexis Practical Guidance . 

Lawyer Spotlight: Fabienne Beuzit

Fabienne Beuzit is a partner in the Paris Office, where she leads the Business Restructuring & Reorganization team. Fabienne focuses on bankruptcy proceedings, court and out-of-court restructurings, distressed M&A matters, and insolvency-related litigation. She guides clients through complex restructuring situations and has represented debtors, lenders, shareholders, and investors in numerous restructurings in France and internationally. She regularly interacts with the dedicated departments of the French Ministry of Economy and Finance Affairs, particularly the Comité Interministériel de Restructuration Industrielle in charge of assisting distressed companies, and liaising with all relevant public bodies dedicated to the companies.

Fabienne's experience also includes setting up strategic carve-out, reorganization, or restructurings of groups and assisting turnaround distressed funds in the sale, acquisition, or investment of distressed equity interests.

According to Chambers Europe , Fabienne has "strong technical expertise coupled with business sense, and dedication at odd hours when the situation commands." France Legal 500 EMEA , which named her among the "Leading Individuals" in France, described Fabienne as a tough negotiator, creative in mastering all aspects of a restructuring case, and "totally dedicated to her clients."

• Attachments
• Business Restructuring Review Vol. 23 No. 4 | July–August 2024.pdf

Corinne Ball

Dan T. Moss

Daniel J. Merrett

Nicholas J. Morin

David S. Torborg

Jane Rue Wittstein

Oliver S. Zeltner

August 2024 White Paper

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