What is a Value Proposition: definition, examples, and tips
A skillfully written value proposition is the core of every company’s competitive advantage. It’s the thing that determines whether customers will read more about your product or service or move on to the next option. A great value proposition could increase your conversion rate and improve your marketing strategies across many channels.
What is a value proposition?
A value proposition is a statement that identifies clear, measurable, and demonstrable benefits and summarizes why a customer should buy a company’s product or use its service. Simply put, it’s a promise of value to be delivered to the client. A value proposition also introduces a brand to customers by showing them what the business stands for, how it operates, and why it deserves their attention.
There’s a lot of stuff being sold out there, so companies must present their products as unique and make them stand out. And a good value proposition is one of the most important aspects that can help achieve this goal.
What are the value proposition examples?
Value propositions are everywhere. You see them every day, yet you may not even be aware of what they are when you come across them. They aren’t slogans or catchphrases. A truly effective value proposition is a statement that paints a clear picture of what a company has to offer to prospects.
Here are a few really great value proposition examples:
Apple’s iconic slogan “Think Different” is nowhere to be found. Instead, we have a great value proposition in the statement “Air. Light. Speed.” This short three-word statement is telling customers exactly what they want to know. MacBooks are light weight-wise, which is a common reason people choose them over a PC laptop. The wordplay of “Light. Speed.” tells people that, if they buy a MacBook, it will be far and beyond any other laptop they can buy elsewhere.
Lyft has two different value propositions for prospective drivers and riders. We’re going to take a look at one of their previous value propositions that targeted drivers. Unlike the MacBook page, Lyft is targeting people who want a job, not a product. This job can be summed up in 4 words: “Turn miles into money.”
The value proposition is simple and effective. It tells you straight up that you can make money driving people, and there’s no question of what Lyft’s goal is. And we imagine people with cars can be pulled in by this page’s promise.
Spotify often comes up in lists of great value propositions, and for a good reason. Their landing page says it all in 3 words. What do they do? Music. Who is it for? Everyone. Basically, they are saying if you like music, Spotify is there to provide it all. And the value proposition obviously works, as Spotify is one of the top music streaming services. It’s incredible how three words can have such an effect.
How to write a value proposition?
It takes more than just coming up with a phrase to write an excellent value proposition. There is a bit of science in art. First, you should ask yourself some questions:
- What does your product/service do?
- What are its most important features?
- How does it work?
- What are your customers’ pain points?
- What are their wants and needs?
- How do your product’s features address these pain points, wants, and needs?
- What are some of the emotions that go into this purchase?
- Why should customers use your product over any of your competitors?
If you can’t answer these questions, your value proposition will probably not quite hit the mark. If your value proposition makes people go “what?”, you’re not on the right path, and it’s time to rethink what you are doing.
Compelling value propositions should meet these guidelines:
- It should be clear and easy to understand
- It should communicate results your clients will get from buying and using your products or services
- It should show how it’s different or better than the competitor’s offer
- It should avoid superlatives (“the best”), exaggerations (“mind-blowing product” or “never seen before!”), and business jargon (“value-added customer interactions”)
An effective value proposition shows what you have to offer that no other competitor has and how your service or product fulfills customer needs that no other business is able to fill. Even if what you sell isn’t quite unique, you can still come up with a compelling value proposition. Creativity is encouraged; something bland and lifeless will not yield any results.
Wrapping it up
To lift conversion rates and sales, you need to clearly communicate your value proposition on all the main entry pages: landing pages, product pages, or category pages. It’s easy to find good and bad value propositions once you are analyzing them critically. When coming up with your own, keep in mind these tips:
- Your value proposition should show your clients the reason your products or services are best suited for those particular customers.
- A successful value proposition should be communicated to customers directly, either via your business’s website or other marketing means.
- Value propositions can have different formats, as long as they are unique and specific to your company or product.
Value propositions can be more than just a phrase or a single sentence. But keep in mind that a long, drawn-out value proposition will probably fall through the cracks and make consumers move on to the next company or product.