1 Learn the concept
A value proposition is a clear statement of the benefit a business delivers and why a customer should choose it over alternatives. It is the answer to the question, why you? A strong value proposition is specific, focuses on the customer's problem and is easy to say in one breath. In this lesson you learn what makes a value proposition strong or weak, how to test one and how to write your own.
2 See it in action
- Weak: "We offer high-quality service." Strong: "Same-day laptop repair for small offices, or it is free."
- Lead with the customer's outcome, not your features.
- Make it different: if a competitor could say the same thing, it is not yet a proposition.
- Test it: show it to five customers and ask what they think the business does.
Worked example
Writing a value proposition in one pass
Formula: For [customer] who [need], [product] is a [category] that [main benefit]. Unlike [alternative], we [difference].
Draft: For small offices that cannot afford downtime, FixFast is a laptop repair service that returns your machine the same day. Unlike big-box repair counters, we come to you and refund the fee if we miss the deadline.
Revised: Same-day laptop repair for small offices, or it is free.
Check: show it to five people and ask what the business does. If three or more answer correctly, it works.
3 Study an example
Real-world case study
Dollar Shave Club: a promise a customer could repeat
What they did. Dollar Shave Club launched on March 6, 2012 with a YouTube video starring its founder, Michael Dubin, titled "Our Blades Are F***ing Great". The offer was simple: razors delivered by mail on a subscription. According to Wikipedia, the membership tiers were $4, $7 and $10 a month.
What happened. The video reportedly prompted about 12,000 orders in roughly two days, and the company was acquired by Unilever in July 2016 for a reported $1 billion in cash.
What to take away. The value proposition fit in one breath: good-enough razors, delivered monthly, at a low price, explained with humor. A customer could repeat it to a friend, which is the test of a strong proposition.
Order and price figures are as reported by the cited sources.
Sources Wikipedia: Dollar Shave Club · Entrepreneur: how the ad went viral
4 Apply it and download
- Write your value proposition in one sentence.
- Ask three people to say back what it means.
- Revise it and complete the value proposition worksheet.
Worksheet Value proposition worksheetOpen, print or save as PDF