Crafting a compelling value proposition is the key to revealing the distinct advantages of buying a product or service.
In this guide, we’ll explain what is a value proposition and why it matters for sales organizations. We’ll also review different examples and techniques for writing unique value propositions that sell.
What is a value proposition?
A value proposition, or value statement, is an introduction salespeople can use to communicate how customers will benefit from a product or service and why prospects should care. It also explains what sets the sales organization apart. This part of the value proposition is also known as the unique selling proposition, or USP, which helps customers understand why they should choose one solution over another.
Why is a value proposition important for sales teams?
Knowing how to create a value proposition will help sales teams understand how a product or service can solve a prospect’s most significant pain points, how it addresses unmet needs, and how it gives new users a unique edge over their competitors. The more valuable a product or service appears to customers, and the more differentiated its features and benefits are from competitors, the more likely a customer can rationalize paying for it, even when the price is high.
How the value cycle influences customer perceptions
To illustrate value creation and perceptions further, let’s look at the value cycle, which consists of five stages that loop continuously.
By understanding each stage of the value cycle, sales organizations can identify where they need to enhance the customer experience and improve or update their value proposition, which can increase customer loyalty, brand advocacy, retention rates, and long-term revenue growth.
How to develop value propositions
There are foundational steps that sales organizations should take when preparing to write value propositions. Peter Thomson developed “The Value Proposition Canvas” template to help businesses define, write, and continuously improve them.
Value proposition canvas
Source: Peter Thomson
This value proposition template is divided into two main sections, the product value map, and the customer profile section.
1. Complete the product value map first
Unless a business is starting from scratch (without a developed product), sales teams can begin by completing the product value map. Teams should list all the features that describe how an existing product or service works. Next, describe the tangible benefits a customer would experience by engaging with the product’s features and functionality, or what it does for them.
Businesses need to offer something their competitors do not to drive value. For example, software as a service(SaaS) product features might include customizable templates, free backend analytics and reporting, and unlimited API integrations.
Product or service benefits could be 24/7 live customer support, exclusive beta trials for VIP users, or a different payment solution (e.g., a monthly subscription versus annual licensing fees).
Finally, consider adding the experience of what it’s like to use the product to a value map. For example, a product might be faster or more reliable (with less downtime) than any other product on the market.
2. Complete the customer profile or buyer persona
Once the product value map is complete, sales and marketing teams can move on to the customer profile section of the “Value Proposition Canvas.”
How to write a value proposition [with examples]
After completing the “Value Proposition Canvas,” it’s time to begin writing.
Below are criteria that help businesses create a unique value proposition that stands out from competitors.
- Clarity: It should be clear and easy to understand what the company does.
- Brevity: The copy shouldn’t be more than a few sentences long and shouldn’t take the reader more than a few seconds to understand the key messages.
- Originality: The message should be unique to the product or service and differentiated from competitors.
- Relevance: The description of features and benefits should address how the product or service solves a dire customer need or challenge.
- Demonstrates value: The message should communicate the value of selecting one product or service over another.
Value proposition examples
Below are several different types of unique value-proposition examples written from various sales angles.
1. Customer-focused value proposition
This approach aims to meet the needs and wants of the customer first, emphasizing their preferred benefits of using the product.
For example:
2. Product- or service-focused value proposition
This type of value proposition highlights how a product or service is the best in its category. For example,
For example:
3. Price-focused value proposition
This approach helps businesses differentiate from competitors based on price. It can be a risky move, as customers may perceive the product or service as having less valuable features or benefits. However, it can also help businesses steal back customers who might have chosen a competitive product based solely on price.
Here’s an example:
4. Innovation-focused value proposition
This customer value proposition showcases how the product or service provides a new solution to a problem.
5. Access-focused value proposition
With an access-focused message, this unique value proposition emphasizes the ease and convenience of accessing the product or service.
Writing a winning value proposition takes time
Businesses must take the time to understand and profile their target customers’ greatest pain points, challenges, and needs to write a compelling value proposition. Sales organizations can use market research, CRM tools, and prospecting platforms to identify, segment, and profile customers using buyer personas.
Sales organizations can also align those customer profile maps with product maps using a “Value Proposition Canvas” to craft short, clear, differentiated, and solution-focused value propositions. The message should communicate how a product or service solves a prospect’s key challenges and addresses their most pressing needs in just a few sentences.
Most consumers will compare several options before making a purchasing decision. It’s critical that a sales organization’s customer value proposition stands out as the best option.
