In its simplest terms, a value proposition is a positioning statement that explains what benefit your idea provides to whom and how it is unique. It describes your target customer, the aspiration you achieve or the pain point you solve, and why your idea is distinctly better than the alternatives.
Developing a value proposition for your idea can help you clarify and refine it as well as giving you some guide-posts to follow in marketing it with others. It’s a simple framework to help organize your thinking. There are a lot of different approaches for value propositions, but here’s one approach to consider:
Value Proposition:
- For _____ (Target Customer)
- who _____ (Statement of Customer Aspiration or Need)
- the _____ (Product or Service)
- is a ______ (Recognized Product Category)
- that ______ (Statement of Key Benefit).
- Unlike _____ (Primary Alternative)
- our product/service _____ (Differentiation).
Considerations:
- Weak Value Proposition: Hard to sell – usually represents something that’s nice to have (don’t have, don’t need)
- Medium Value Proposition: Must have (lowers cost or increases productivity or enables something previously not possible)
- High Value Proposition: Easiest to sell – Shadow costs (fears) – to avoid loss of something valuable you already have – (insurance, health care, security, environmental quality, social status, reputation/brand)