How to Craft the Perfect Value Proposition Statement (with examples)

Struggling to explain why your product is the best choice? A strong value proposition is the key to turning "maybe later" into "take my money!" Here we break down how to put together a value proposition statement that’s clear, compelling, and actually convinces your audience to buy. 

What Is a Value Proposition and Why Does It Matter?

Think of a value proposition as your promise to customers. It tells your customers exactly why your product or service is the perfect fit for them, better than any alternative.—what they’ll get from using your product or service, and why it's worth their time, money, and energy. When done right, a good value proposition captures attention, builds trust, and encourages the audience to take action.

At its core, a value proposition answers three essential questions:

1. What's problems or challenges are facing the customer?
2. What needs does the customer have (social, emotional, functional)?
3. How does your solution satisfy the customer's needs and solve their problem uniquely well?
    

Your value proposition is about connecting with your customers’ emotional, social and functional needs and priorities. 

How to Build a Winning Value Proposition

Step 1: Define The Problem

Start with the foundation:

• Problem (aim for problems that are urgent, unavoidable, underserved, unworkable)
• Need (think about your target segment and their unique needs which other alternatives don't address)
• Solution (what is the unique technology or innovative method that makes you the obvious choice) 

Step 2: Evaluate Your Solution's Value

Customers buy when the problem they are facing is urgent and unavoidable. If the problem isn't critical then solving it is not a priority. 

• The promised benefit of using the solution
  
  • pain felt currently vs the promise of how the customer will feel afterwards
• Experience in Purchase
  • pain and cost for the customer to adopt the solution vs the expected gains
    

• What’s the Pain? What current frustrations or inefficiencies does it resolve? What happens if the customer doesn't solve the problem?
• What’s the Gain? What specific core value does your product provide? Does it save time, reduce costs, or make life easier?

Step 3: Build Your Value Proposition Statement 

Once you've defined the problem, the need, and your solution, the next step is to bring it all together as a simple and powerful value proposition statement. 

• For [target customers]
• Who [have a specific problem or unmet need]
• Our product is [your innovative solution]
• That provides [key benefit or gain]
• Unlike [current alternatives that fall short].

Example: Slack’s value proposition for remote teams might look like this:

“For remote teams struggling to communicate across time zones,
who are frustrated by disorganized email threads,
our product is a workplace messaging platform
that provides real-time collaboration, integrations, and transparency,
unlike traditional email, which slows down productivity.”

Real-World Examples

1. Zoom
   For businesses managing remote teams,
   who struggle with clunky and unreliable video conferencing tools,
   our product is a seamless video communication platform
   that provides reliable, high-quality video calls and easy integrations,
   unlike traditional conferencing software, which is often difficult to use and unstable.

2. Airbnb
   For travelers seeking authentic and affordable accommodations and hosts wanting to monetize their unused space,
   Who face limited options for connecting directly with trusted counterparts,
   Our product is a two-sided platform that connects travelers with hosts offering unique stays,
   That provides convenient, personalized experiences for travelers and supplemental income for hosts,
   Unlike traditional hotels or rigid rental services, which lack flexibility, local charm, and affordability.

Final Thoughts

Your value proposition is the reason people should buy your product or service instead of something else or just not buy at all. For this reason, it's incredibly important to be able to communicate it in a way that's simple, clear and compelling, hence the need for a value proposition statement. By following this guide you should be ready to incorporate it into your your messaging, branding, and product strategy. The key is to keep it customer-focused, actionable, and clear.

Ready to take your marketing to the next level? Value Proposition offers a range of marketing services, workshops and consulting designed to help your business innovate in ways that place you 5 years in front of your competition. Get in touch with us today.

Hint: If you find it challenging to define your value proposition then look to the Jobs to be Done theory. It offers a unique perspective and framework to help you get to the right answers. 

1. What’s the problematic circumstances the customer's finds themselves in? 
2. What jobs does the customer need to get done in order to move from the problematic state to a desired state?  
3. Why should the customer hire your solution over alternatives to get the job done?