What is value proposition?

Value proposition refers to a simple statement that summarises why should a customer buy product products or services. This statement communicates the benefits that customer will receive by buying from you.

A good value proposition help to speak to a customer’s challenge (pain point) and make the case for your customer as a problem solver. At the same time it highlights the differents between you and your competitors.

How to write a value proposition?

Harvard Business School’s Institure for Strategy & Competitiveness has come out with below method on writting a value propostion with three promts:

• Who is your customer?

• Which needs are you going to meet?

• What is relative price that customer willing to pay?

While you go thru this method, consider which is the primary element that you would like to focus on: Would it be cost savings? Or a better product that offering premium experience? It could be a brand new market that you haven’t explore and how could you offer the greatest value for this group of customer.

Here some examples of good value proposition:

Be More Productive at Work with Less Effort – Slack’s value proposition that focusing on credibility and productivity.

Save Money Without Thinking About It – Digit’s value proposition that offering hands-off savings.

The Smartest Way to Get Around – From Uber that offering uber convenience.