Last Updated on September 19, 2024 by admin
Your company’s competitive advantage lives or dies by its value proposition. If you can’t clearly distinguish your product or service from your competitors — and then deliver on your brand promise — why should customers choose you?Your company’s competitive advantage lives or dies by its value proposition. If you can’t clearly distinguish your product or service from your competitors — and then deliver on your brand promise — why should customers choose you? The stakes are high, but writing a great value proposition shouldn’t strike fear into your heart. (And if it does — deep breath. We’ll get through this together.) In this article, we’ll define what a value proposition is, and just as importantly, what it isn’t. We’ll also break down examples from seven well-known brands. I’ve also talked to a handful of marketing experts to bring you tactics and tips for creating value props that will help you lift sales, boost conversion rates, connect and engage with customers, and solve world peace. (Just kidding on that last one. But a good value proposition does address a lot of marketing problems.) We’ll cover: What is a value proposition? Value Proposition vs. Mission Statement (vs. Others) Elements of a Value Proposition How to Write a Value Proposition 4 Methods to Build Great Value Propositions Value Proposition Templates Value Proposition Canvas Examples Value Proposition Examples Value Proposition Canvas Examples What makes a good value proposition? Value Proposition FAQs A value proposition, sometimes called a brand proposition or core proposition, might be the difference between losing a sale and closing it. In other words: A great value prop is an essential conversion factor. For that reason, it‘s important to create one that accurately represents your products and services, distinguishes you from competitors, and makes it clear why you’re the best choice. Let us help you make this process easier: Download our templates below and follow along with the rest of the post. Your value proposition is yours — it distinguishes your business from your competitors, and it clearly communicates that to customers. Without it, buyers won’t have a reason to purchase what you sell. They may even choose a competitor simply because its marketing campaigns and sales processes have a clearer value proposition. You might think: Isn’t my value prop interchangeable with, say, my slogan? Nope. It’s easy to confuse your value proposition with other similar brand assets, such as your mission statement, slogan, or tagline. We break down the differences below. Value Proposition vs. Mission Statement Your value proposition details what you offer customers and why they should choose you, while a mission statement details your objective as an organization. Although the two may share elements, a value prop is more product- and service-oriented, and a mission statement is more goal-oriented. Here’s an example for HubSpot’s Smart CRM, the AI-powered system that connects all of HubSpot’s products within the customer platform: Value Proposition: “Free CRM Software That Grows With Your Business.” Mission Statement: “Helping millions of organizations grow better.” Value Proposition vs. Slogan A slogan is a short, catchy statement that brands use in marketing campaigns to sell a specific product. While your value proposition wouldn’t necessarily go in an ad (at least, not usually), a slogan would. The most important thing to note is that a company can have different slogans for different campaigns or products. Here are two examples from De Beers Group: Value Proposition: “Exquisite diamonds, world-class designs, breathtaking jewelry.” Slogan: “A diamond is forever.” Value Proposition vs. Tagline A tagline is a short statement that embodies a certain aspect of your brand or business. While a value proposition is more concrete, a tagline can represent a concept or idea that your business stands for. Most businesses have only one tagline that is instantly recognizable and connected to their brand. Target’s value proposition centers its commitment to creating “an unparalleled product assortment that goes beyond the basics. That means providing guests with high-quality designs they’re proud to buy, at affordable prices they love.” Tagline: “Expect more. Pay less.” Value Proposition vs. Mission Statement vs. Slogan vs. Tagline Your value prop should differentiate you from your peers and competitors, but it’s not quite the same thing as a slogan, tagline, or mission statement. Let’s look at an example of a business that uses all four: Nike. Nike’s earliest value propositions — back in the 1970s, long before it was an international conglomerate — were much more narrowly defined. It “was a running shoe company, and the brand stood for excellence in track and field,” Nike co-founder and former CEO Phil Knight told Harvard Business Review in a 1992 interview. Today, the brand is more customer-centered than product-centered, and positions itself as an innovative, inspirational, and sustainability-minded brand. Mission Statement: “To bring inspiration and innovation to every athlete in the world.” Among Nike’s more memorable slogans are “Twice the guts. Double the glory,” “Bo knows,” and “There is no finish line.” Image Source Tagline: ”Just do it.” Value props, mission statements, slogans, and taglines are all important accessories to your brand, but your potential customers and employees consider additional factors when choosing one business over another. In other words, “Just do it” plastered across a city bus won’t necessarily close a sale. But if that tagline is backed up by an earned reputation for innovation, inspiration, and sustainability, you’re much more likely to have customers lining up for the next Air Jordan release. Your value proposition goes deep into the problems you want to solve for buyers and lays out why your product or service is the perfect solution. Elements of a Value Proposition Before we get into the nitty-gritty of writing a great value proposition, let’s look at the main elements of one. Target audience. Whose problems will be solved by your product or service? Product or service. What is your brand promise? Benefits and features. How are they different from any competitors? Excellent execution. Can you deliver on your value proposition? If you’re a visual learner, check out