How to Craft a Proposition of Value (With Definition)

By Indeed Editorial Team

Published June 2, 2022

The Indeed Editorial Team comprises a diverse and talented team of writers, researchers and subject matter experts equipped with Indeed's data and insights to deliver useful tips to help guide your career journey.

Value propositions are essential pieces of any marketing material and the core of a marketing strategy. They can help an organization show its clients or customers why they may choose them over their competitors. Understanding what a value proposition is can help you improve your marketing skills. In this article, we discuss what a proposition of value is, how to make an effective value proposition, and what to avoid when crafting one.

What is a proposition of value?

A proposition of value is a marketing message that states how a product can provide an intangible good, service, or benefit. This message is the reason why a customer may prefer to buy a product from the company. The value proposition includes what the company says, what they do, how the product or service looks and sounds. This means that they offer value to the clients to surpass others in the same industry. The company usually stays competitive and provides the best possible experience for the clients so that they may continue to return and grow their clientele base.

The value proposition describes the benefit of a product or service to the customer. Depending on the type of service or product, a value proposition might be a statement, a story, a picture, or even a demonstration. When well-crafted, it can help the company's prospects discover how they can benefit from the purchase. It can also help them visualize how they integrate the solution into their daily routines. An organization can use a value proposition for the following purposes:

  • Aligning their tasks to their goals

  • Improving their marketing and advertising strategy

  • Retaining established clients

How you can differentiate a company's proposition

A value proposition can give a company an edge over other competitors in the same industry. It's what their prospects can use to evaluate them because a value proposition is a foremost aspect prospective customers usually look for when exploring the services they offer. It's beneficial for the organization to have a clear and detailed value proposition to differentiate its products or services from the competition in the market.

To achieve this, you can help the company use the value proposition to encourage and help their departments and units align their goals around this statement. You can also use the value proposition to provide the organization with an identity and standards.

Read more: What Is Product Differentiation? A Complete Guide

What makes a good value proposition?

An excellent value proposition tells the prospects why a product from a specific company is the perfect one to consider and not others in the same market. While creating a value proposition, you can identify the product's or service's benefits and how they address the prospect's needs, wishes, or issues. Your ultimate goal can be to connect a client's challenges to the company's value proposition.

A good value proposition is typically short, clear, and provides prospective clients with all the information they need about the services the company offers. Others are a series of brief bullet points and maybe longer, but despite the many formats these value propositions may have, almost all share specific characteristics, which are:

  • Concise: This means brief, straightforward, and stating the message in a way that engages the company's prospects and makes them want to buy their products. This means if you have a long list of benefits to highlight, it's beneficial to summarize them to avoid losing the customers' attention.

  • Understandable: A valuer proposition requires you to be clear about the idea behind the statement. As part of the company's marketing team, make sure the readers aren't struggling to find out some hidden meanings.

  • Definitive: A good value proposition clearly defines what the company does and what type of services they provide.

  • Self-explanatory: A value proposition explains how it intends to solve the needs and wishes of the company's clients or customers.

  • Accessible: Accessibility means making a product or a service available, convenient, and easy to use for a person. Making sure the target audience can access the company's value proposition is the key to landing a client successfully.

Read more: How to Write an Effective Marketing Resume (With Example)

How to make a value proposition

You can find many companies without value propositions or defined marketing strategies. Other organizations usually review, update, and edit their value proposition to provide the most current information to the public. They may also describe what makes these benefits valuable rather than just describing the benefits. It's beneficial to create easy-to-understand statements to guarantee that the customers get the primary message. When crafting a value proposition, here are the steps to follow:

1. Determine the clients' needs and issues

The company's services and products exist because they have identified a problem or need their prospects have and want to solve. Before you write the value proposition, it's beneficial to identify the problem the organization wants to solve. To create a value proposition that resonates with the potential clients, figure out how to transform the company's products into tangible and meaningful items, and explain how it makes the clients' lives of feels better.

Read more: How to Become a Digital Marketing Freelancer in 9 Steps

2. Establish the benefits of the services

Identify the benefits of the company's services to their prospects so that they see how they may help them. The most common mistake that some organizations make is to sell their service or product as only one. It's beneficial to talk with the teams involved in the product manufacturing process and with its designers to collect the information related to the benefits of a product or service. After gathering this information, you can consider highlighting two or three major features.

3. Describe the value of these benefits

Once you have made the potential client understand how a product or service can benefit them, the next step is to show them the value they derive from purchasing them. By describing how valuable are these benefits, you can convince them to buy the company's products. For example, you can tell them how much money they can save or how the product and can ease or improve their quality of life. You can also state how the product can make them feel happier, or how they can be more productive at work by having the product.

4. Connect the product's value to the customers' demands

The value proposition has only one role, which is to convince the prospects to purchase a product or service. Make sure the value proposition document talks of the company's unique services and directly addresses the customers' needs and demands. Describe what makes these benefits valuable and more appropriate to a potential customer. By doing this, you can differentiate the company's strategy from a competitor in the same market.

5. Differentiate the company from its competitors

The next step is to make the value proposition unique. A strong value proposition can create a unique selling proposition (USP) for a product or service, differentiating it from competitors. To achieve this, you can research the competition and they describe their products or services. Knowing this information may help you avoid creating similar message. A strong value proposition can show the prospects of the specific value the company is offering them.

Read more: How to Write a Positioning Statement in Seven Steps (With Examples)

6. Seek feedback and publish

Before putting your value proposition in public, share among the team and some regular customers to know what they think about the product and its benefits. You can use the input received to develop a final draft to publish on the company's website or a different marketing promotional platform. For instance, you can create a survey with two or three value propositions and allow your team to select one.

Read more: 14 Recruiting Strategies to Find the Best Candidates

What to avoid when building a value proposition

Good value propositions may require time and effort to craft. This means you need excellent skills, deep research, and teamwork to create an excellent proposition value. Some marketers may struggle with crafting good value propositions because the focus is mainly on selling rather than solving customers' needs. When creating a value proposition, you can include several elements to make it more interesting and appealing. There are some potential risks you can avoid while creating a proposition for an organization, which are:

  • Making false promises: Understand the quality of the product and the benefit it can provide and adhere to it throughout the selling process. It's beneficial to avoid creating false promises.

  • Using vague language: Ensure the language you use is easy to read and understand. Potential clients usually want a simple, clear, and easy-to-remember message.

  • Ignoring customer data: Customer feedback can form the basis of your value proposition. It's beneficial then to read and understand the customers' needs and opinions regarding a company's products and services.

  • Promoting the wrong value: To attract potential clients, make sure the value you highlight in the value proposition is the most outstanding.


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