Value proposition
o The development of a value
and value proposition canvas
VALUE
o the amount of money that something
is worth: the price or cost of
something
o something that can be bought for a
low or fair price
o usefulness or importance
o a strongly held belief about what is
valuable, important, or acceptable -
usually plural "values"
VALUE PROPOSITION
o A value proposition is a promise of
value to be delivered. It's the
primary reason a prospect should
buy from you.
o 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.
o Your value proposition is a unique
identifier for your business.
o Without it, buyers won't have a
reason to purchase what you sell.
o They may even choose a competitor
simply because that business
communicates its value proposition
clearly in its marketing campaigns
and sales process.
Importance of a Value Proposition
proposition is a vital part of a
company's business strategy.
o 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.
A value proposition is a clear statement
that offers three things:
1. Relevancy. Explain how your
product solves customers' problems
or improves their situation.
2. Differentiation. Tell the ideal
customer why they should buy from
you and not from the competition.
3. Quantified value. Deliver specific
benefits.
VALUE PROPOSITION VS
MISSION STATEMENT
o Your value proposition details what
you offer customers and why they
should choose you, while a mission
statement details your objective as
an organization.
o While the two can have points in
common, a value prop is more
product- and service-oriented while
a mission statement is more goal-
oriented.
o Here are two examples for HubSpot
and our CRM platform (source
website):
Value Proposition:
"An easy-to-use CRM."
[product- and service-oriented]
Mission Statement:
"To help businesses grow better."
[goal-oriented]
VALUE PROPOSITION VS
SLOGAN
o A slogan is a short, catchy statement
that brands use in marketing
campaigns to sell a specific product.
o While your value proposition
wouldn't necessarily go in an ad (at
least, not usually), a slogan would.
o The most important thing to note is
that a company can have different
slogans for different campaigns or
products.
o Here are two examples from De
Beers Group:
Value Proposition:
"Exquisite diamonds, world-class
designs, breathtaking jewelry."
Slogan:
"A diamond is forever."
VALUE PROPOSITION VS
TAGLINE
o A tagline is a short statement that
embodies a certain aspect of your
brand or business.
o While a value proposition is more
concrete, a tagline can represent a
concept or idea that your business
stands for.
o Most businesses have only one
tagline that is instantly recognizable
and connected to their brand.
o Here's an example from Apple:
Value Proposition:
"The best experiences. Only on
Apple."
Tagline:
"Think Different."
VALUE PROPOSITION VS
MISSION STATEMENT VS
SLOGAN VS TAGLINE
o Now, let's look at an example of a
business that has all four: Nike.
Remember that slogans can differ
depending on the campaign.
Value Proposition: "Customizable
performance or lifestyle sneakers
with unique colorways and
materials."
Mission Statement: "To bring
inspiration and innovation to every
athlete in the world
Slogan: "Twice the guts. Double the
glory?
Tagline: “Just do it"
PEOPLE SHOULD READ AND
UNDERSTAND YOUR VALUE
PROPOSITION.
o A value proposition is something
real humans are supposed to
understand. It's for people to read.
Here's an example of what a value
proposition is not supposed to be
like:
o Would you be able to explain the
offer to your friend or how they'd
benefit? Didn't think so.
Unfortunately, it's no joke. Such
meaningless "jargon propositions"
are abundant.
USE THE RIGHT LANGUAGE FOR
YOUR VALUE PROPOSITION.
o Your value proposition needs to be
in the language of the customer
(informed by customer research and
buyer intelligence).
o It should join the conversation that's
already going on in the customer's
mind.
o To do that, you need to know the
language your customers use to
describe your offering and how they
benefit from it.
o The way you speak about your
services is often very different from
how your customers describe them.
HOW TO CREATE A VALUE
PROPOSITION
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 powerful
value proposition, but no one can
see it, the effect of the proposition
will be zero!
WHAT THE VALUE
PROPOSITION CONSISTS OF
o The value proposition is usually a
block of text (a headline, sub-
headline, and one paragraph of text)
with a visual (photo, hero image,
graphics).
o There is no one right way to go
about it. But you can start with the
following formula:
i. Headline. What is the end-
benefit you're offering in one
short sentence? It can mention
the product and/or customer.
Make it an attention grabber.
ii. Sub-headline or a 2-3
sentence paragraph. A
specific explanation of what
you do/offer, for whom, and
why it's useful.
iii. 3 bullet points. List the key
benefits or features.
iv. Visual. Images communicate
much faster than words. Show
the product image, the hero
shot, or an image reinforcing
your main message.
o Evaluate your current value
proposition by checking whether it
answers the questions below:
✓ What product or service is your
company selling?
✓ What is the end-benefit of using
it?
✓ Who is your target customer for
this product or service?
✓ What makes your offering
unique and different?
WHAT MAKES A GOOD VALUE
PROPOSITION?
o Clarity! It's easy to understand.
o It communicates the concrete
results a customer will get from
purchasing and using your products
and/or services.
o It says how it's different or better
than the competitor's offer.
o It avoids hype (like "Never seen
before!" or "Amazing miracle
product!"), superlatives ("best") and
business jargon ("value added
interactions").
o It can be read and understood in
about 5 seconds.
7 EXAMPLES OF VALUE
PROPOSITION
1. Campaign Monitor
Comments:
✓ Very clear what it does,
✓ Specific lead paragraph;
✓ Relevant images that support
text-based claims;
✓ Features a booster-Instant
signup. No credit card
required."
2. Trello
Comments:
✓ Clear statement about what it is
and for whom;
✓ List of features and benefits in
sub-headline;
✓ Relevant image.
3. Zoom
Comments:
✓ The headline is clear and
succinct.
✓ Booster with "Sign Up Free"
and "Sign up, It's free";
✓ Use of a third-party review to
compare favorably and credibly
against competitors.
4. Evernote
Comments
✓ Succinct explanations of what
it's for ("Your notes), the
benefit it provides
(Organized"), and why it's so
great ("Effortless)
✓ Key features and benefits in the
sub headline:
✓ Relevant image
VALUE PROPOSITION CANVAS
o A value proposition canvas is a
visual tool that helps you position
your business's product or service
around your customers' needs.
o The goal of the value proposition
canvas is to identify how your
business provides value within the
market.
o You can use one when introducing a
new offer into the market or when
enhancing an existing one.
o The value proposition canvas is
made up of two major components:
the customer profile and the value
map.
Here's how to make one:
Step 1: Create a customer profile to
represent your target buyer.
When performing this exercise, you'll
want to start with this section first so that
their wants and needs can influence the
overall value proposition canvas.
The customer profile
consists of three areas:
1. Customer Jobs
o What is the task
your customer
needs to complete
or the problem
they're trying to
solve with your product or service?
o The answer to this question sums up
the "customer job" or the purpose of
your product or service in the eyes
of the customer.
2. Customer Expectations
o "Expectations" are also referred to
as "gains" - in other words, what
your customer is hoping to gain
from doing business with you.
o No matter what you sell, your ideal
customer will have an expectation of
what that product or service will do
for them.
o In this section, you'll use research to
explain what your customers expect
from you in order to purchase your
product.
3. Customer Pain Points
o As your customer completes their
"customer job," what pains do they
experience?
o Do they take any risas while they do
the customer's job?
o Do they experience any negative
emotions?
o These pain points should be
considered so that you include the
most helpful products and services
on the value map side of the value
proposition canvas.
Step 2: Create a value map for your
products and services.
In this section of the value proposition
canvas, three specific sectors help
describe what the business offers to the
customer.
Gain Creators:
These are featuring
your products or
services have that
make the customer
happy.
Think creatively
about the elements of happiness your
customers experience.
Consider their financial and social goals
as well as their psychographics.
2. Pain Relievers
o This section will define exactly how
your business will help them
overcome those pain points.
3. Products & Services
o While this section won't list every
single product or service your
company, offers, it should include
the ones that will create the most
gain and alleviate the most pains for
your customers.
Step 3: Determine value proposition-
customer fit.
o Once you've completed the value
proposition canvas exercise, the
next step will be to determine how
your value proposition fits within
the customer profile.
o To do this, you'll use a ranking
process that prioritizes products and
services based on how well they
address the customer profile.