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Glossary Stand out from your competitors 2 min read

What is a value proposition?

Lewis Dowling Managing Director and Consultant

Short answer

A value proposition is the promise you make to customers about what they'll get from working with you. It's the reason someone should pick you over the alternatives. A good one is short and specific, and it's written about the customer's problem rather than your own business.

Also known as: Brand positioning, Differentiation, Unique selling point (USP)

Contents

Why it matters

Your value proposition is usually the first thing a potential customer reads. Think of the headline on your homepage, or what you say when someone asks what you do. If it doesn't make sense in a few seconds, most people won't stick around to find out more.

Most businesses have one, they just bury it. It ends up halfway down the About page, wrapped in words like "solutions" and "excellence". Meanwhile, the homepage talks about the company's history or vague adjectives that say nothing.

Once it's clear, a lot of other things get easier. Sales conversations get shorter. And the people who aren't a good fit tend to rule themselves out early, which saves everyone time.

Common mistakes

  • Talking about yourself.

    "We're a leading provider of…" is about you. Customers care about what changes for them.

  • Listing features instead of benefits.

    A feature is what something has. A benefit is what it does for the customer. "24/7 support" is a feature. "Someone picks up when things break at 2am" is the benefit.

  • Being too clever.

    A pun or a vague one-liner might sound good in a meeting. If a stranger can't tell what you sell, it isn't working.

  • Trying to say everything.

    Pick the one thing that matters most to your best customers and lead with it. Everything else can go further down the page.

How to get started

  • Pick one type of customer. Your value proposition will be sharper if it's written for someone specific.
  • Write down the problem they have. Use their language. Think about what they'd type into Google or moan about to a friend.
  • Describe what changes when they work with you. Be concrete. "Get your evenings back" beats "improve efficiency" every time.
  • Say why you, not someone else. What do you do that the other companies don't?
  • Cut it down. Aim for a headline of under 10 words and a sentence or two underneath to back it up.
  • Read it to someone outside your business. If they can explain it back to you, you're there.

FAQs

What's the difference between a value proposition and a USP?

They overlap a lot. A unique selling point focuses on what makes you different from competitors. A value proposition is broader, and it's about the overall value a customer gets. Your USP is often one part of your value proposition.

Is a value proposition the same as a slogan?

No. A slogan is a catchy line for marketing and brand recognition (I don’t need to tell you the company behind “Just do it”). A value proposition is a clear statement of what you offer and who it's for. It can be catchy, but being clear matters more.

Where should my value proposition go?

At the top of your homepage, for a start. After that, it should shape pretty much everywhere you describe yourself, from your LinkedIn profile to how you introduce yourself at events.

Can a business have more than one value proposition?

Yes, if you sell to quite different types of customers. You might have one overall value proposition for the business and a more specific one for each service or audience.

Related terms