value proposition

A value proposition is a promise of value to be delivered and acknowledged and a belief from the customer that value will be delivered and experienced. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services. Creating a value proposition is a part of business strategy. Kaplan and Norton say “Strategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation.” Developing a value proposition is based on a review and analysis of the benefits, costs and value that an organization can deliver to its customers, prospective customers, and other constituent groups within and outside the organization. It is also a positioning of value, where Value = Benefits – Cost (cost includes economic risk).

A value proposition is a short statement describing your product or service’s unique value to customers. It explains what benefit your product or service provides and how it differs from similar offerings.

Your value proposition should be clear, concise, and easy for potential customers to understand. It should also be specific enough to give them a good idea of what your product or service can do for them.

When crafting your value proposition, think about what your product or service can do for your customers that other similar products or services cannot. What need does it fill? How does it make their lives easier or better? Answering these questions will help you create a strong value proposition that will resonate with your target audience.