How to Create a Value Proposition

Whether you’re a startup courting investors or a company refining its message, having a compelling value proposition is essential. It clarifies what sets you apart by defining the benefits your product or service provides, answering why someone should choose your brand over the competition. In this post, we’ll explore what a value proposition is, provide strategies for crafting one, examine examples from successful brands like Slack and Airbnb, and discuss the importance of evolving your proposition with your customers’ needs. By the end of this guide, you’ll be equipped with insights and tools to articulate your unique value in a way that resonates and compels action.

What is a Value Proposition?

A value proposition is a succinct, yet comprehensive statement that articulates why your product or service is worth buying. It’s the promise of value to be delivered, communicated compellingly to your target audience. This statement lays the foundation of your brand messaging and marketing efforts, influencing how potential customers perceive your brand.

Crafting a value proposition involves identifying what makes your offering unique or superior to alternatives in the market. It must answer three fundamental questions: What do you offer? How does it solve a problem or improve a customer’s situation? And why should they choose you over another option? An effective value proposition resonates with the customer, addressing their needs and painting a clear picture of the benefits your product provides.

How to Write a Value Proposition: 3 Options

1. Map out a Value Proposition Canvas

The Value Proposition Canvas is a tool that helps break down the complexities of crafting a value proposition into more manageable parts. It comprises two main sections: the customer profile and the value map. The customer profile outlines customer jobs (tasks they need to accomplish), pains (challenges they face), and gains (benefits they wish to achieve).

By mapping out these elements, you can identify how your product or service creates value. The value map includes your products and services, pain relievers, and gain creators. Align these components to address the needs and challenges highlighted in the customer profile, thereby crafting a clear, focused value proposition that speaks directly to your audience.

2. Ask Harvard Business School’s Essential Questions

Clayton Christensen of Harvard Business School suggests a framework for crafting a value proposition by pondering fundamental questions: What is the job to be done? For whom is this job important? How do we make sure we fulfill it? These questions urge you to consider deeply the actual role your product plays in the customer’s life.

This approach emphasizes understanding the emotional and functional aspects of the customer’s needs, which aids in formulating a value proposition that is both relevant and persuasive. By honing in on these essential questions, you focus on delivering a product that genuinely fits into and enhances the customer’s journey.

3. Try the Steve Blank Formula to Distill Your Insights

Entrepreneur Steve Blank offers a simplified formula for crafting a value proposition: “We help (X) do (Y) by doing (Z).” This format helps clarify your audience, the problem you solve, and the way you provide a solution in an easy-to-digest manner.

This approach demands precision and clarity, pushing you to distill complex information into a single sentence. By using Blank’s formula, you ensure your value proposition stays focused and clear, making it simple for your audience to understand your brand’s unique value at a glance.

6 Value Proposition Examples

1. Slack

Slack’s value proposition centers on enhancing team communication and collaboration, promising a seamless way to communicate through organized channels. Their approach is straightforward: by reducing internal email chains, teams become more efficient and transparent. Slack’s user-friendly platform and integrations also simplify interactions, ensuring productive work environments.

Slack elaborately pitches its offering with the message: “Slack brings the team together, wherever you are,” underscoring accessibility and ease of use. Its focus lies on providing a structured communication framework, thereby enhancing productivity in diverse organizational settings.

2. Bloom & Wild

Bloom & Wild revolutionizes flower delivery with its innovative packaging and service model, promising to surprise and delight recipients with fresh, hand-picked flowers delivered straight to their door. Their value proposition highlights convenience, quality, and the joy of receiving a beautifully curated arrangement.

Their messaging: “Bringing your loved ones happiness by delivering fresh flowers through their letterbox,” cleverly addresses both convenience and thoughtful gift-giving. By focusing on the recipient’s experience, Bloom & Wild effectively convey their unique offering of joy and connection through floral gifts.

3. Airbnb

Airbnb’s value proposition lies in offering unique travel experiences by connecting travelers to comfortable, homey stays around the world. Unlike hotels, Airbnb presents an authentic taste of local life, promising personal and memorable experiences at various price points.

“Belong anywhere” is a succinct encapsulation of Airbnb’s mission to provide more than just accommodation. Emphasizing a connection to place and community, Airbnb appeals to travelers seeking personal and authentic experiences over standardized hotel stays.

4. Fjällräven

Outdoor gear brand Fjällräven promises durability and sustainability in its value proposition by offering products that stand the test of time, both in terms of durability and environmental impact. Their mission to provide reliable outdoor equipment resonates with nature enthusiasts seeking long-lasting gear.

Fjällräven’s commitment to sustainability and functionality is cleverly captured in their promise: “Bringing you closer to nature through high-quality outdoor gear.” This aligns their brand with ecologically aware consumers, enhancing their reputation and customer loyalty.

5. Juniper Print Shop

Juniper Print Shop’s uniqueness lies in their digital-friendly approach to art, providing customizable prints suitable for diverse decor styles and preferences. They appeal to customers looking for affordable and stylish decor options that offer versatility in design.

Their proposition, “Art for every style, space, and mood,” indicates their focus on practicality and personalization, attracting a wide range of audience segments seeking flexible decor solutions. Juniper Print Shop thrives on delivering beautiful art that fits seamlessly into any environment.

6. Found My Animal

Found My Animal taps into pet owners’ mixed desire for stylish and meaningful products, offering handcrafted, durable pet accessories that also support animal welfare. Their value proposition beautifully marries fashion with compassion, benefiting both owners and pets.

“Crafted with love, designed for a cause,” perfectly captures their philanthropic ethos, appealing to ethically-minded consumers seeking quality products that support animal rescue. By aligning their brand mission with consumer values, Found My Animal builds a deeper connection with its audience.

The Best Value Propositions Evolve with Your Customers

Creating an effective value proposition is not a one-time task but a dynamic process that must evolve as your customers and the market change. Listening to feedback, tracking trends, and regularly reassessing your customers’ needs are crucial to keep your value proposition relevant and compelling.

Regular updates ensure your messaging aligns with customer expectations and emerging market demands. An iterative approach to refining your value proposition demonstrates a commitment to understanding and serving your customers, thereby fostering trust and loyalty over time.

Topic	Summary
What is a Value Proposition?	Explanation of a value proposition and its importance in branding and marketing.
Map out a Value Proposition Canvas	Describes a tool to visualize customer needs and aligning them with your product features.
Ask Harvard Business School’s Essential Questions	Using fundamental questions to address the customer’s needs and how your product fulfills them.
Try the Steve Blank Formula	A precise formula for clarifying a simple, effective value proposition.
6 Value Proposition Examples	Real-world examples illustrating successful value propositions from various brands.
The Best Value Propositions Evolve with Your Customers	Discussion on the importance of keeping your value propositions current with market and customer changes.