What is Value Proposition: Complete Understanding and How to Build It

One of the goals of most organizations is to attract customers and increase sales. An outstanding value proposition can help your business develop relationships with individual customers or other businesses to achieve that goal.

Your company’s leadership may ask you to participate in crafting a value proposition at some point in your career, so understanding this concept is a good career strategy.

In this article, we explain what a value proposition is, explain what makes a value proposition, list the steps you should take to build a value proposition, and offer tips when you are building a value proposition and what to avoid when creating a value proposition.

1 What is the value proposition?
2 What makes a good value proposition?
3 How to make a value proposition?

3.1 1. Define your company values
3.2 2. Expand the value
3.3 3. Determine your customer’s requirements
3.4 4. Connect your values ​​with your customers’ needs
3.5 5. Calculate the value of
3.6 6. Seek feedback
3.7 7. Publish your statement
10 ways to find a unique value proposition

4.1 1. Review the products or services your company offers
4.2 2. Focus on your company’s main target market
4.3 3. See your competitor’s value proposition
4.4 4. Compare your company’s offerings with those of competitors
4.5 5. Read about your company’s mission statement and core values
4.6 6. Research past marketing campaigns that have worked well for your company
4.7 7. Think about the solutions your company offers to consumers
4.8 8. Use industry stereotypes for inspiration
4.9 9. Read customer reviews for inspiration
4.10 10. Draft several propositions and get feedback
5 What to avoid when creating a value proposition?
6 Conclusion

What is a value proposition?

A value proposition is a company’s unique selling point that explains to potential customers why they should do business with the organization.

In most cases, a value proposition offers a clear distinction between an organization and its competitors to help customers see why they should work with one company over another.

Companies use the value proposition in a number of ways. They are used internally to help various departments within a business align their tasks and goals, and they are used externally as a marketing and advertising tool to help convince customers to make a purchase.

The value proposition itself is very concise and is usually only a sentence or two in length and can be used for both internal and external content.

What makes a good value proposition?

A good value proposition can take many forms. Some sentences are complete, while others are a series of short bullet points. Whatever the format, excellent value propositions tend to have certain characteristics:

  • Concise: Ideally, the value proposition is short and concise enough for your customers to remember and remember.
  • Digestibility: The main idea of ​​a value proposition should be immediately clear to the reader.
  • Definitive: The value proposition must definitively state the unique value your company offers to customers.
  • Explanation: An excellent value proposition should provide a clear explanation of why your company is better than the competition.
  • Accessibility: Customers and internal stakeholders should have easy access to the value proposition, usually through your company website.
  • Measurable: Some value propositions offer quantifiable statistics to better show how much better their product is than their competitors.

How to make a value proposition?

Almost every company has a value proposition. Many companies review, edit, and update their value propositions regularly to ensure they are providing the best information to the public.

Depending on your role in the organization, your company leadership may assign you to create or update your business value proposition. Follow these steps to create a value proposition:

1. Define your company value

Start by determining the value your company offers in the marketplace. You can identify several different benefits—choose the value that best describes your company’s overall approach to customer service. At this stage of value proposition creation, you are more likely to have a list of words or phrases rather than a fully structured statement.

2. Expand the value

Choose a word or phrase from the list you outlined in Step #1 that represents the main value your company offers and develop it into a thoughtful, comprehensive sentence.

Keep the language simple but easy to remember. You will probably use most of these expressions in your final value proposition.

3. Determine your customer’s needs

Shift to a customer perspective. Consider what they need most when considering your product or service in the marketplace. An important element of your value proposition is showing potential customers how your organization meets those needs, so defining specific customer needs is an important step in the value proposition creation process.

4. Connect your values ​​with your customers’ needs

Focus on your statement from Step #2 and your customer’s needs from Step #3. Try to combine the two strings or words into one comprehensive statement that highlights your company’s unique market value and how that value directly supports customers.

5. Calculate the value

Quantification can help customers quickly see the true value your company provides. If possible, rewrite your value proposition to include specific details that explain the amount of value your company provides versus competitors to help convince potential customers that your organization is the best choice.

6. Seek feedback

After you’ve written the first draft of your value proposition linking the key benefits your organization delivers to meeting your customers’ needs (Step #4), seek feedback from internal and external stakeholders. Use the feedback you receive to write a final draft of your value proposition that impacts customers and drives sales.

7. Publish your statement

The final step in creating a value proposition is publishing it. Ideally, the value proposition will be easily accessible on your company’s website and other marketing and promotional materials.

Sharing it widely internally also helps to ensure that all employees understand how their individual efforts contribute to the organization’s overall market value.

10 ways to find a unique value proposition 

There are various ways you can develop a unique value proposition for your business. Review these 10 ways to find a unique value proposition that aligns with your company’s goals and values:

1. Review the products or services your company offers

Your company’s products and services can be a source of inspiration when trying to create a unique value proposition, as they represent what your company offers to consumers. This further helps you decide how to drive your unique value proposition around your offering.

2. Focus on your company’s main target market

When trying to figure out the best unique value proposition for your employer, it’s important that you focus on your primary target market. This is because it represents a large part of your customer base.

By creating a unique value proposition that aligns with your primary target market, you increase revenue and generate customer relationships with people who really need your company’s products or services.

3. See  your competitor‘s value proposition

Looking at your competitors’ unique value propositions can help you determine how they present themselves as a company. Similarly, you can find out what topics you should include in your own topic. You can also get ideas on how to make your unique value proposition stand out more.

4. Compare your company’s offerings with those of competitors

When creating a unique value proposition, focusing on what sets you apart from your competitors is a great way to amplify your message. Look at your main competitors’ products, services, price points, and other factors to determine what you have and what they don’t.

A good example is if you offer 24-hour customer service, unlike your competitors, or if you have a quality product that lasts longer than your competitors.

5. Read about your company’s mission statement and core values

Your company’s mission statement outlines the important values ​​and goals that your company stands for. This makes it a great resource when trying to figure out how to state your unique value proposition.

6. Research past marketing campaigns that have worked well for your company

A unique value proposition is a statement that allows a company to market itself to consumers. Therefore, reviewing marketing campaigns that receive high engagement can help you brainstorm similar language or phrases to incorporate into your unique value proposition.

7. Think about the solutions your company offers to consumers

Consumers want to know what your business does to them, which is why it’s important to consider consumer needs when creating your unique value proposition. Start by reviewing your products or services and think about what problems they solve for consumers.

For example, imagine that you work for a cosmetics business that sells face masks, bath bombs, essential oils, and soothing perfumes. From this, you determine that the problems your customer base is facing are stress and limited time for self-care.

Your company’s solution is to provide soothing cosmetic products that help consumers relax and take time for self-care.

8. Use industry stereotypes for inspiration

Industry stereotypes are the personas that people think of when they hear about an industry. While these can sometimes include negative or humorous stereotypes, you can use them to your advantage in your unique value proposition to surprise and intrigue consumers and ultimately convince them to look into your company.

9. Read customer reviews for inspiration

Positive customer reviews help you discover what customers like and value most about your business. This gives you valuable insight into what your company has to offer, which you can include in your unique value proposition.

Contact your company’s customer service department for access to positive customer reviews or complete an online search.

10. Draft several propositions and get feedback

To find a great unique value proposition, you need to first structure a few different options and show them to your coworkers and immediate supervisor.

This is important because it allows you to determine which unique value proposition has the highest value and elicits the most positive response.

What to avoid when creating a value proposition?

While there are many good elements to include in a strong value proposition, it’s important to avoid some potential pitfalls in order to maintain the efficacy of your company’s value proposition:

  • Lack of evidence: Any claim you make in your value proposition should be easily verified by customers on your website or by visiting your store.
  • Unclear language: Your value proposition should be very easy for customers to understand and remember. Make sure the language you choose is simple and clear.
  • Not testing: A/B testing can help your organization identify the best value proposition statements to help customers choose your company over competitors.
  • Identify low-level value: Your company is likely to provide many benefits to customers. Make sure the values ​​you highlight in your value proposition are the ones that are most impressive to attract potential customers.
  • Ignoring customer data: Use customer data to inform your value proposition. Customer points and needs should inform the products and services your company offers, not the other way around.
  • Overselling: Just as underestimating the benefits your company provides can limit the impact of your value proposition, so can overselling what your company has to offer. Make sure the value you claim to provide is accurate and verifiable.


That’s a complete explanation of the value proposition and tips for creating a value proposition for a business. In most cases, a value proposition offers a clear distinction between your business and competitors and it helps customers see why they should buy a product or use a service from your company over others.

So it is very clear that the value proposition in a business is essential to differentiate yourself from your competitors.

However, you need to know that a good value proposition alone is not enough to achieve business success. because, you must be able to manage your business finances appropriately and neatly, so that every company budget can be carried out properly, including product promotion budgets.

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