The importance of a clear value proposition and how to write one.

Your business and product offering is made up of various aspects. The core value proposition is the central piece that ties everything together. It completes the picture and makes it clear why your business matters to your ideal customer.

But although it’s crucial, some businesses get stuck on how to write a value proposition that captures their customers’ undivided attention. 

So what are some of the most common hurdles businesses face, what’s a good approach to crafting a good value statement, and how can its impact be tested effectively? 

Why do value propositions matter?

As your promise to deliver value, a value proposition communicates the advantages of your offering, answering a fundamental question for customers: Why should they choose you?

A value proposition should attract your ideal customers and retain their loyalty by consistently delivering on its promises. It should establish a unique identity, highlight differentiators and communicate why your solution is the right one for them.

Within your business, value positioning guides strategic decision-making. From product development to marketing strategies, a clear value proposition ensures that every action aligns with your brand’s core promise.

Common challenges in developing a value proposition

Although its purpose is to directly address what matters most to customers, sometimes businesses struggle to develop a strong value proposition. 

Below are some common hurdles I’ve seen businesses face when articulating the value they provide customers:

1. Not understanding their target market’s needs, preferences, and pains and therefore missing the mark when talking about how they help their customer.
2. Getting caught up in highlighting internal capabilities rather than focusing on how those capabilities solve real customer problems.
3. Fear of narrowing focus or excluding potential customers. This leads to the creation of a generic proposition aimed at pleasing everyone.

All three hurdles result in a poor resonance with any particular niche and not much luck in attracting the right customer.

How to write an effective value proposition

Developing a compelling value statement requires a strategic and customer-centric approach. I’ve helped plenty of businesses navigate this process successfully so here is a step-by-step guide on how to design a smashing value proposition:

STEP 1: Invest time in understanding your target audience. Conduct surveys, interviews, and analyse data to uncover customer needs, desires, and pains.

STEP 2: It’s easy to get lost focusing on features. Instead emphasise the outcomes and benefits customers will experience and explain how your offering improves their lives.

STEP 3: Don’t fear narrowing your focus. A clearly defined core value proposition will resonate more deeply with a specific audience, leading to a stronger connection to the product or service and experience you provide.

STEP 4: Craft a concise and clear value statement that can be easily communicated and understood. This messaging should be consistent across all communication channels.

STEP 5: Seek feedback from customers and stakeholders and use this input to iterate and refine your value promise as market conditions evolve.

How to make sure the value proposition you’ve written works

Make sure you test the waters by measuring the effectiveness of your value offering. Below are a few key indicators you can use to gauge impact:

• Seek direct customer feedback. Do they understand your offering? What do they find most compelling?
• What are conversion rates saying? If the value proposition resonates it should contribute to higher conversions as it communicates the unique benefits of your product or service.
• Are customers choosing your product or service over competitors? Track sales trends to align with the introduction or refinement of your value proposition.
• Does your business stand out from competitors? Monitor market share and competitive positioning.
• What’s the level of brand recognition associated with your value proposition. Is your brand becoming more widely known, and is it associated with specific benefits?

A value proposition example

It’s important to bring your value proposition to life with campaigns that address the awareness, decision, purchase and loyalty stages of the funnel. You can do this with the right content, delivered at the right time through the right channels. 

To wrap up here’s an examples of a value proposition brought to life from one of my favourite brands:

Think Different, Campaign by Apple (1997-2002) 

Apple’s value proposition revolves around innovation, design, and simplicity. 

Their “Think Different” campaign called out to a market niche that considered themselves as stand out change makers and creators. 

To point out the key differentiator that would appeal to their ideal market segment, Apple’s campaign was launched alongside IBM, who as their key competitor at the time was running the “Think IBM” campaign for their ThinkPad product.  

Apple’s campaign which consisted of TV ads and billboards highlighted the unique benefits of their products, creating a brand identity synonymous with cutting-edge technology and user-friendly design.

Final words

Last but not least, remember that designing a value proposition is not a set and forget task. The value you offer will evolve as your business matures and market dynamics change. For this reason it’s important to check in on the performance of your value proposition and adjust it over time.