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Making a Risk Management Plan for Your Business

It’s impossible to eliminate all business risk. Therefore, it’s essential for having a plan for its management. You’ll be developing one covering compliance, environmental, financial, operational and reputation risk management. These guidelines are for making a risk management plan for your business.

Developing Your Executive Summary

When you start the risk management plan with an executive summary, you’re breaking apart what it will be compromised of into easy to understand chunks. Even though this summary is the project’s high-level overview, the goal is describing the risk management plan’s approach and scope. In doing so, you’re informing all stakeholders regarding what to expect when they’re reviewing these plans so that they can set their expectations appropriately.

Who Are the Stakeholders and What Potential Problems Need Identifying?

During this phase of making the risk management plan, you’re going to need to have a team meeting. Every member of the team must be vocal regarding what they believe could be potential problems or risks. Stakeholders should also be involved in this meeting as well to help you collect ideas regarding what could become a potential risk. All who are participating should look at past projects, what went wrong, what is going wrong in current projects and what everyone hopes to achieve from what they learned from these experiences. During this session, you’ll be creating a sample risk management plan that begins to outline risk management standards and risk management strategies.

Evaluate the Potential Risks Identified

A myriad of internal and external sources can pose as risks including commercial, management and technical, for example. When you’re identifying what these potential risks are and have your list complete, the next step is organizing it according to importance and likelihood. Categorize each risk according to how it could impact your project. For example, does the risk threaten to throw off timelines or budgets? Using a risk breakdown structure is an effective way to help ensure all potential risks are effectively categorized and considered. Use of this risk management plan template keeps everything organized and paints a clear picture of everything you’re identifying.

Assign Ownership and Create Responses

It’s essential to ensure a team member is overseeing each potential risk. That way, they can jump into action should an issue occur. Those who are assigned a risk, as well as the project manager, should work as a team to develop responses before problems arise. That way, if there are issues, the person overseeing the risk can refer to the response that was predetermined.

Have a System for Monitoring

Having effective risk management companies plans includes having a system for monitoring. It’s not wise to develop a security risk management or compliance risk management plan, for example, without having a system for monitoring. What this means is there’s a system for monitoring in place to ensure risk doesn’t occur until the project is finished. In doing so, you’re ensuring no new risks will potentially surface. If one does, like during the IT risk management process, for example, your team will know how to react.


value proposition for business plan

How to Write a Value Proposition (+ 6 Modern Examples)

value proposition for business plan

Leaders often work tirelessly to improve their company’s product or service, thinking that it’s the most valuable role they can play. But for your business to “click” with your target audience, you need to stay just as close to your customers as you do to your offerings.

The details of customers’ needs and wants should be just as familiar to you as the features of your product or the details of the service that you provide. A value proposition serves as the bridge between these two aspects of your work. It’s a mantra that unites the two halves of the whole business.

We’ve demystified the nuts and bolts of how to write a value proposition, complete with examples, so you can ensure that all your hard work manifests in value for your customers every day.

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What is a value proposition?

A value proposition is a simple statement that summarizes why a customer would choose your product or service. It communicates the clearest benefit that customers receive by giving you their business. Every value proposition should speak to a customer’s challenge and make the case for your company as the problem-solver.

A great value proposition may highlight what makes you different from competitors, but it should always focus on how customers define your value . Likewise, conversations around brand strategy and taglines should stem from a value proposition, but they aren’t one and the same.

You may be wondering: Why bother learning how to write a value proposition? It’s like investing in the foundation of a house. You may not see the foundation, but everything you do see — and the long-term safety and security of your home — rest on it having a strong place to start from.

How to write a value proposition: 3 options

If you’re intentional about creating a value proposition, it can help clarify the way forward for your entire company. However, including too many voices early on can water down your intent in an effort to make everyone happy, and, ironically, the results won’t work for anyone.

Rather than get everyone involved, start with a small group of people (no more than three) who can set aside the time to hone a few compelling options.

Here’s how to write a value proposition three different ways, from complex mapping to a simple formula. Start with one or try all three in a workshop to refine your ideas with greater precision.

1. Map out a value proposition canvas

Peter Thomson’s value proposition canvas explores the different components of a company that contribute to a strong value proposition. Thomson believes that a process like this can help team members get to “minimum viable clarity,” which can be whittled down into a one-sentence value proposition.

Thomson calls a value proposition “a crunch point between business strategy and brand strategy,” and he created a model that syncs the two strategies. There are seven areas to explore, each of which takes up a section in the map:

peter thomson's value proposition canvas

When you explore each section of the canvas, do so from the perspective of the customer. While writing out the benefits of your product, imagine how it increases pleasure or decreases pain for the person using it. Approach the features and the experience that way, too: How do the features make the customer’s life better? How does the product experience make a customer feel?

Next, you’ll dive into the customer’s wants (emotional drivers), needs (rational motivators), and fears (undesired outcomes). Remember that even when consumers are making purchases or investments on behalf of a company, they can still be guided by emotions .

In particular, try to understand whether a product or service affects a buyer’s perceived likelihood of failure, their anxiety, or their reputation at work. You can use Bain & Company’s 30 “ Elements of Value ” and its B2B counterparts as a roadmap for articulating the ways your company gives the customer value within this context.

2. Ask Harvard Business School’s essential questions

Harvard Business School’s Institute for Strategy & Competitiveness simplified how to write a value proposition with just three prompts. Just as Thomson does, Harvard argues that a value proposition serves as the connection between a company and its customers:

“While the value chain focuses internally on operations, the value proposition is the element of strategy that looks outward at customers, at the demand side of the business. Strategy is fundamentally integrative, bringing the demand and supply sides together.”

To create an integrated, cohesive value proposition, start by brainstorming as a group around these three questions:

Which customers are you going to serve?

Which needs are you going to meet?

What relative price will provide acceptable value for customers and acceptable profitability for the customer?

Depending on your product and service, it may make sense for you to start with the first or second question in the list. Together, all three create a triangle that can lead you closer to a succinct value proposition.

harvard business school essential value proposition questions

As you move through the exercise, consider which one is the primary “leg” of the triangle. For example, is the greatest value that you offer in cost savings? Or is it that you’re offering a better product or experience at a premium?

Also, think about whether your company is expanding the market by meeting a need that hasn’t been realized. Harvard’s experts use a great example — the iPad. Apple created a new demand that hadn’t existed before the technology hit the market.

3. Try the Steve Blank formula to distill your insights

Steve Blank , a former Google employee who runs the Lean Startup Circle , noticed that many startup founders emphasize features instead of benefits when they try to transform more detailed insights into a succinct value proposition. Instead of summarizing how a company offers value to customers, leaders often get stuck in the weeds.

Blank saw the need for a simple formula to transform a brainstorm into a simple sentence. We love distilling more detailed insights with his method:

We help (X) do (Y) by doing (Z).

Use Blank's intuitive template to come up with your own value proposition. Remember that the first thing that comes to mind may be the best. Your gut instinct could be spot on here, and that’s what makes this simple solution so valuable.

Here’s my value proposition for my copywriting business, for example:

I help marketing teams to resonate with their target audiences by communicating with clarity and compassion.

Your local coffee shop may have a value proposition that’s similar to this one:

We help our local customers to feel good and do good by fueling them up with artisanal coffee in a community-focused space.

Although you may have brainstormed as a group with the other two methods, this time, ask team members to complete this exercise individually. Comparing and contrasting answers afterward can yield helpful insights about each person’s priorities.

Most importantly, as you draft your value proposition, use the language your customers use. At Help Scout, we say things like “emails slipping through the cracks,” because that’s what our customers say about the problem we help solve. If you don’t write your value proposition the way your customers would write it, there will be a big gap between what you say and what they hear. When you use their voice, you cut through the noise.

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6 value proposition examples

Beyond grasping how to write a value proposition, it helps to see how a strong statement influences and infuses a company’s strategy. Because value proposition examples aren’t necessarily the same thing as brand copywriting, we don’t have access to the exact words a company uses internally.

However, if a company does a great job situating their value proposition within the market, you can tell because their message resonates far and wide. Here are six modern value proposition examples that will help you to understand how value propositions can help you break into a market or create a new one.

Slack is a collaboration tool for teams with a simple, easy-to-use platform and instant message capability. The platform is equally beloved by enterprise teams and scrappy startups for its ability to keep work flowing, no matter the everyday barriers or the complexity of a project.

Everything that the company does hinges on their value proposition: Slack saves time by tearing down communication and systems silos. Their product aspires to take the pain out of working together online — and maybe even make it fun. That’s something no other product has tried or claimed to do.

Because they’ve built such a powerful value proposition, Slack is perceived as an enjoyable alternative to the dreaded email inbox and other tools. Their approach works. Slack is the fastest-growing SaaS startup ever, and it’s used by 77% of Fortune 500 companies.

Despite this legendary growth, Slack famously said it was a business with a pared-down sales team, which is only possible because of the foundation they set with a formidable value proposition.

2. Bloom & Wild

Bloom & Wild is an online flower delivery company that simplifies the process of ordering and receiving luxury flowers. Aron Gelbard, founder and CEO, explained their value proposition in their 2017 funding announcement: “We’re enabling [our customers) to order flowers and gifts from the palm of their hand with better product, designs and payments.”

Bloom & Wild makes it possible for customers to deliver flowers in under a minute using their smartphone or computer; going from thought to action is almost instantaneous. As Gelbard says, “Our mission is to make sending and receiving flowers a joy, using technology to turn emotions into an action in the simplest and most beautiful way possible.”

The flowers are just as simple to receive. They’re packed in flat boxes so they can be delivered through letterboxes (or mailboxes) so there’s no need for someone to be on hand to receive them, and they’re sent as closed flower buds for a longer bloom.

While many companies deliver flowers, Bloom & Wild differentiates itself by offering a smooth customer experience for everyone, as well as competitive pricing, with significantly cheaper blooms than average.

Bloom & Wild communicates its value proposition so clearly that its customers perform much of the hard task of marketing for them through word-of-mouth referrals.

When Airbnb began to disrupt the hospitality industry, it needed to market to two separate groups: guests who wanted a place to stay and hosts who wanted to rent out their spaces. Their two-in-one value proposition: Travelers benefit from a truly local experience and hosts benefit from extra income.

In their own words, “Airbnb exists to create a world where anyone can belong anywhere, providing healthy travel that is local, authentic, diverse, inclusive and sustainable.”

Their rooms often have more character than hotels, and they’re usually located in neighborhoods people live in. Guests learn from local knowledge shared by hosts and feel at home wherever they go. These different sources of value wrap together into Airbnb’s tagline: Belong Anywhere.

As a business goes through different stages of growth, its value proposition is likely to change, too. Originally marketed as much cheaper than staying in a hotel, Airbnb has now become an experience-driven, mainstream staple with a premium wing called “Airbnb Plus,” with its own value proposition.

4. Fjällräven

The classic Swedish outdoor clothing and equipment company Fjällräven was founded by Åke Nordin in 1960. He designed functional (and warm) products for professional researchers taking expeditions into northern Scandinavia.

Now, the 60-year-old brand is experiencing a resurgence amongst younger generations across Europe and North America. Their core proposition is that they sell high-quality, sustainably made products that balance form and function. Yes, customers look great wearing their backpacks and they can still hike up a mountain in the middle of winter.

Their commitment to sustainable business practices appeals to the same conscious consumers who value the outdoors, which fortifies their value proposition. Fjällräven manufactures many of its own products using its own G-1000 material, as well as its own Greenland Wax, contributing to its value proposition of offering quality and durability.

Because they “craft products for a lifetime of memories,” customers are more than willing to pay their premium prices.

5. Juniper Print Shop

When Jenny Komenda launched her first blog, Little Green Notebook, in 2007, she was a young designer sharing her DIY projects with the world. An entrepreneur at heart, Komenda evolved her skillset and online following into another award-winning blog, Juniper Home, and its beloved counterpart, Juniper Print Shop .

Komenda built a cohesive brand that championed affordable design and spoke to a key value proposition that motivated her customers: helping non-designers create a beautiful home without breaking the bank.

Her content answers this question in thousands of different ways, and the new arm of her business offers a simple fix for finding affordable art — one of the most difficult challenges along the way. She launched a print shop featuring the work of women artists and photographers with simple digital downloads and physical prints that are cost-effective and easy to install.

Juniper’s value proposition comes to life in the details of the print shop — from links to affordable IKEA frames — and Jenny’s one-of-a-kind suggestions (buy a vintage frame, invest in a custom mat).

6. Found My Animal

Found My Animal is a company for rescue dogs and their owners. In 2006, Bethany Obrecht and Anna Conway met by coincidence — they both had rescue dogs named Walter, and they quickly became friends.

Their shared interest in crafts (and a fisherman relative) led the two dog moms to design and create leashes from nautical rope that withstand hundreds of pounds of pull. Each leash has a brass tag with the word “FOUND” written on it in simple font.

The company has since expanded their product lines to include other dog accessories and supplies like dog beds, totes, and toys.

Found My Animal’s value proposition is simple: Support a company that donates a portion of its profits to animal rescue groups by outfitting your own rescue in quality products. The company has given money (and leashes) to over 64 nonprofit organizations that help abandoned or neglected pets, so customers know their purchases are making a difference.

This value proposition is baked into every aspect of Found My Animal, especially their marketing. Their team features rescue dogs in need of homes front and center on their website and their social media accounts. Plus, their social media tag #foundmyanimal brings awareness to animal adoption.

They even launched The Rescue Orange Project: A buy-one-donate-one leash program. For dog owners who are as devoted to rescuing other pups as they are to their own, buying from this company is a no-brainer.

The best value propositions evolve with your customers

Now that you can answer the question “What is a value proposition?” a few different ways, you’re ready to get to work. Even if you already have a value proposition in place, consider carving out the time to revisit it.

As customers and markets change over time, your company should evolve as well. Rather than make assumptions about your community based on their past needs and buying behaviors, create feedback loops so you’re always in the know.

By listening to customers in real time, you set your company up to evolve its value proposition and meet the needs of your community as it grows.

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Elizabeth Wellington

Elizabeth Wellington

Liz writes about business, creativity and making meaningful work. Say hello on Twitter or through her website.

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Value Proposition: Definition with 8 Winning Examples (2023)

Illustration of a hummingbird landing on a hand holding a flower from a computer screen, representing how your value proposition needs to appeal to your target customer

Why do your customers buy from you? What motivates people to choose you, to choose your products over the hundreds of alternatives? What makes your company, and your products, better than the rest?

The answer: your value proposition.

If you can perfect your value proposition, you can increase your conversion rate and improve your marketing strategies across many channels. Learning to present the value your company and products deliver in a compelling way is one of the most high-value, wide-reaching marketing activities.

In this article, we'll cover what makes a great value proposition, how to create a strong value proposition, as well as look at some unique value proposition examples.

What is a value proposition?

A value proposition is a simple statement that clearly communicates the product or service benefit you promise to deliver to your customers. It's ultimately what makes your product attractive to your ideal customer.  A value proposition expresses what your business does better than anyone else and why someone should do business with you or buy your product.

A compelling value proposition meets three criteria:

Don't confuse brand slogans, catchphrases, or even a positioning statement with a unique value proposition as they're different things.

Here's a visualization that will help you avoid that trap.

Value propositions focus on outcomes

Your value proposition should focus on the superpowers that potential customers get, not the product. Rarely is your value proposition the product itself or its features. Instead, it's the way the brand or product fixes a meaningful pain point, improves the lives of your target audience, and the way it makes them feel (like they have superpowers, for example).

A value proposition should be front and center when a visitor arrives on your site. Although it's often found above the fold on the homepage, you should be aware of other common entrance points (e.g., a landing page, category pages, blog posts, and product pages).

Even if you manage to create an effective value proposition, it won't drive sales if it's tucked away in a dusty corner of your website or absent on high purchase intent pages.

How to write a unique value proposition

So, what goes into a good value proposition, and where should you begin?

1. Gather voice of customer copy

A good value proposition uses  voice of customer copy . That is, it uses the exact words of your current customers to hook your future customers.

For example, if they were interviewed for a case study, how would your target customers describe your product? How does it improve their lives? How do they describe your company? Why do they choose to associate with your brand?

Interview your customers or send out a survey to better understand how they speak about you, both to other people and to themselves. Pay attention to common words and phrases they use. You can keep track of responses and phrases in a simple Google doc.  Your visitors should see themselves in your value proposition. The language you use plays a big role in shaping their perspective. If you want to go the extra mile, spend some time looking at value proposition examples of your competition What are they doing right? What could they improve? Take note of how your competition talks to their customers. Sign up for their newsletters and email flows. 

2. Emphasize clarity before creativity

Above all, you must ensure your value proposition is clear. Sounds obvious, right? Your value proposition needs to serve many purposes, so achieving crystal clarity can be quite difficult.

When evaluating your draft, ensure it answers the following questions:

Your value proposition should be relatively short—two or three short sentences, maximum. Every word should improve clarity or make your main selling point more compelling, otherwise it needs to be cut.

3. Focus on benefits, not hype

How many “World's Best Coffee” signs would you see in store windows walking down just one busy New York City street? Dozens. Each sign you encounter would make it a little more difficult to believe the previous one.

Hype, which can come in the form of superlatives (“best”) and exaggerations (“world's best”), can be dangerous that way. Instead, focus on distinct benefits and the concrete value your product delivers.

If you need to use hype to sell your products, it's a sign that your value proposition is not well defined. Or, perhaps, even that your product is not as valuable as you think. Don't let the love for your product or service get in the way of viewing your brand objectively. 

Examples of strong value propositions

The best way to get a feel for how value propositions work and how to get them right is to look at some great proposition examples.

1. BustedTees

BustedTees uses “BustedTees brings you the highest quality graphic tees on the net” as its homepage value proposition.

BustedTees value proposition example

In this case, it's betting on the quality of its production materials and designs. The value proposition is small but centered at the top of the page.

The site appears to only display the value proposition to first-time visitors, who are more likely to be unfamiliar.

Note how the value proposition is followed quickly by a relevant call to action. “Hey, we have high quality graphic tees. Want to shop our bestselling graphic tees?” If your value proposition does its job, it motivates and inspires action, so make it easy for visitors to take that action.

2. Novo Watch

Novo Watch promises to deliver “Timepieces handmade in Alberta from repurposed pieces of history.”

NOVO Watch

Instantly, you know the difference between a watch from Novo Watch and one of its competitors. The best value propositions are unique and undeniably different.

When you arrive on the site, the value proposition fills the entire page, but you'll also find the value proposition reiterated on the product pages.

NOVO Watch product description

The continuity from the homepage to the product page is immediately evident. Phrases like “manually wound timepiece” and “132 year old train track” reinforce the value proposition, creating a clear message match.

3. Studio Neat

Studio Neat creates simple products that solve common, everyday problems. That value proposition and brand ethos is communicated throughout, even though it’s not explicitly stated on the homepage.

Studio Neat value proposition example

Simple products that deliver simple but desirable value. “Tripod mount for smartphones,” “Wood docks for Apple stuff,” “Wide-grip stylus,” “Make and store simple syrup,” etc.

The same theme is continued on product pages.

Product page value proposition

No exaggerations, no complex product details. “On your nightstand or at your desk, it's nice to have a designated spot to charge your devices.” Tell me that sentence doesn't read like a customer wrote it himself.

While taking notes on value proposition examples is a good start, it's important to go one step further.

4 important types of value propositions

In ecommerce, your value proposition is more than just the big, bold heading on your homepage. There are four distinct types of value propositions you should know about when optimizing your store.

1. Your company value proposition

Did you know there's a difference between the value proposition of your company and products?

Take Studio Neat for example. The value proposition for its company would be something like this: "Simple products that solve simple problems." The value proposition for its Material Dock is: "It's nice to have a designated spot to charge your devices." Now, you can see and feel the company value proposition in the product value proposition, but it's important to see the distinction.

Further, in this article, we're talking about your external value propositions. It all starts with a  strong brand ethos , which is the way you talk about and think about your brand, both internally and externally. For example, Studio Neat's brand ethos might be something like this: “Subtract until it's perfect.” You can see how that ethos trickles down through everything, including the company value proposition and the product value propositions.

2. Your homepage value proposition

This is the type of value proposition you’re most familiar with. It’s the big, bold heading on your homepage. Just think back to the Novo Watch value proposition example above.

Your homepage value proposition will depend on the type of store you run. For example, if you have a small number of products, your homepage value proposition might be more product-focused. If you have a wide range of products, your homepage value proposition might be more company- or brand-focused.

Novo Watch’s homepage value proposition is product-focused, for example:

Timepieces handmade in Alberta from repurposed pieces of history.

Novo has a relatively small number of products and is specifically focused on watches. If it were to introduce a line of handcrafted pens made from pieces of history and a line of handcrafted wallets made from pieces of history, how might their homepage value proposition need to change?

3. Your category value propositions

Don't overlook the need for a value prop on your category pages. Why? Just look at the search engine results page (SERP) for “women's jeans.”

Product category value proposition

First, you'll notice that all of these pages are category pages.

Second, many of the page descriptions are value propositions in disguise. Abercrombie & Fitch has variety, the perfect fit for everyone. Bootlegger's black jeans won't fade. Old Navy jeans will make you look polished, even on a casual day.

When you click through to Abercrombie & Fitch, for example, you'll see the value proposition reiterated in the on-site copy.

Category landing page example

High rise, low rise, a variety of washes, “Fit for your story.” All of these triggers help reinforce the value proposition. As you can see, though, it's still quite uncommon to find a clear and succinct value proposition on a category page.

With so much competition among category pages, especially on SERPs, that's a huge missed opportunity that you can step up and capitalize on. Ask yourself what each category of products on your site promises that's specific, pain-focused, and exclusive.

4. Your product value propositions

A product value proposition goes, you guessed it,  on your product page . Each product within each category needs a specific value proposition. Think back to the Neat Studio Material Dock example above.

Here's another great product value proposition example from Studio Neat.

Product value proposition example

Anyone who has an Apple TV knows that losing that tiny remote is a common occurrence. Instead of having to tear the couch apart a couple times a day, buy Studio Neat's Apple TV Remote Stand. “You know you're going to lose it. You won't if you buy this.”

Simple, right? Perfect, because that's Studio Neat's company value prop.

By now, you're starting to see how the value propositions trickle into and influence one another. Start with the company value proposition, then the homepage value proposition, then category value propositions, then product value propositions.

A two-step template for creating a value proposition

Now it's a matter of combining everything you've learned about value propositions to craft one of your own. There's no reason to complicate the matter; the process can be broken down into just two steps:

The question becomes, how do you get both steps right?

Step 1: Identifying your value proposition

Before you dig into identifying your value proposition, it’s important to frame your thinking properly.

All great value propositions start with one question:

Maybe it's your customer service, maybe it's your product design, maybe it's material quality, maybe it's  price . It can be anything customers find valuable.

A word of caution, though: your company and products are more comparable than you think. Your visitors will certainly be comparing you to your competitors, so beat them to the punch. See how your value proposition stacks up against the promises of your top competitors. What will set you apart in the minds of your visitors?

Note that small values like free shipping, money-back guarantees and same-day delivery can be useful conversion tools, but are secondary to your  unique selling proposition .

If your answer to “What do I do better than anyone else?” is “free shipping,” you're not digging deep enough. That's something any store can copy and paste, meaning it's not a defensible value proposition. Often, identifying your value proposition requires quite a bit of thought and research (customer interviews, for example).

Please, promote those free post-purchase gifts and shipping guarantees alongside your value proposition. You will likely capture people on the fence. But that's just a bandage if the core value proposition isn't unique or compelling.

You can also use the value proposition canvas created by Dr. Alexander Osterwalder to help streamline this process.

Step 2: Communicating your value proposition

Distill what you do better than anyone else into a single sentence and display it prominently. You want to ensure this is what grabs attention first.

Just like an article headline, many people will read the single sentence value proposition and move on. If they like it, they might read a brief elaboration or just continue on to the next step. If they don't like it, they'll often just go ahead and leave.

That's a lot of pressure on just one sentence, so you want to make sure you're getting it right. That is, you want to make sure it's clear and relevant.

It's a useful exercise to spend the time coming up with 10–15 variations of your initial value proposition.

Now, you want to know which one is the most unquestionably clear. A simple  five-second test  can help you with that. In a five-second test, people see your site (with your value proposition) for five seconds and then answer questions about what they saw. What do they remember? What do they think your site does? What do they think your product does?

Let's look at some even more value proposition examples.

If you find people can't answer the questions correctly, you have a clarity issue. A common clarity problem? Hiding the value. Here's an example from Best Buy:

Best Buy value proposition example

“TV & Home Theatre” is prioritized visually here, but the value proposition is hidden below.

Here’s the same problem on Tiffany & Co.:

Tiffany value proposition example

And on Topshop:

Topshop value proposition example

You get the idea. Make sure your value proposition is as clear as possible. The first step? Visually prioritizing your value proposition. Again, don't be afraid to dig through additional value proposition examples for inspiration.

The five-second test is just one way to test your value proposition. You can also run  on-site A/B tests  to figure out which of your 10–15 variations is most effective. Short of that, running paid Facebook ads to test the persuasion power of each of the variations is another option, especially if you have a low traffic site.

Value propositions help you perfect your promise

Your value proposition is a promise to your future customers. If that promise is specific, pain-focused and exclusive, you will turn future customers into paying customers.

Every entrepreneur believes their company and products are valuable. That's why it's so easy to overlook the way that value is communicated to strangers.

Spend the time to perfect your promise. It's not just a  branding  exercise, it's a marketing exercise that will pay off over and over and over again.

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Value proposition faq, what is meant by value proposition, what are the 3 elements of value proposition.

About the author

Shanelle Mullin

Shanelle Mullin works on growth, experimentation, and conversion rate optimization at Shopify.

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How to Write a Great Value Proposition [5 Top Examples + Template]

Basha Coleman

Published: March 10, 2022

Your company’s value proposition is the core of your competitive advantage. It clearly articulates why someone would want to buy from your company instead of a competitor.

Marketing and Branding team coming up with a great value proposition for their business

So how do you actually write a value proposition statement that's strong enough to lift conversion rates and sales? In this article, you’ll learn the definition of a value proposition, what a value prop isn't, examples of some of the best value props we’ve seen, and tactics to create amazing value props.

→ Download Now: 15 Free Value Proposition Templates

What is a value proposition?

Elements of a Value Proposition

Value proposition templates, value proposition examples, how to write a value proposition, tactics to develop an effective value proposition.

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A value proposition is a short statement that communicates why buyers should choose your products or services. It’s more than just a product or service description — it's the specific solution that your business provides and the promise of value that a customer can expect you to deliver.

Value propositions are one of the most important conversion factors. A great value proposition could be the difference between losing a sale — and closing it.

For that reason, it’s important to create one that accurately represents your products and services and makes it clear why you’re the best choice. However, writing it from scratch is hard. Download our templates below so you can follow along with the rest of the post.

Free Value Proposition Templates

15 templates to help you brainstorm, write, and promote your value prop..

Your value proposition is a unique identifier for your business. Without it, buyers won’t have a reason to purchase what you sell. They may even choose a competitor simply because that business communicates its value proposition clearly in its marketing campaigns and sales process .

That said, 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. While the two can have points in common, a value prop is more product- and service-oriented while a mission statement is more goal-oriented.

Here are two examples for HubSpot and our CRM platform:

Value Proposition: “An easy-to-use CRM.”

Mission Statement: “To help businesses 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.

Here’s an example from Apple:

Value Proposition : “The best experiences. Only on Apple.”

Tagline : “Think Different.”

Value Proposition vs Mission Statement vs Slogan vs Tagline

Now, let’s look at an example of a business that has all four: Nike. Remember that slogans can differ depending on the campaign.

Value Proposition : “Customizable performance or lifestyle sneakers with unique colorways and materials.”

Mission Statement: “To bring inspiration and innovation to every athlete in the world.”

Slogan : “Twice the guts. Double the glory.”

Tagline : “Just do it.”

TLDR; While your value prop should help differentiate you from the rest of the industry, keep in mind it's not a slogan , tagline, or mission statement. Those types of copy are important accessories to your brand, but your potential customers and employees don't choose one business over the other solely based on these elements.

Your value proposition goes deep into the problems you want to solve for buyers, and what makes your product or service the perfect solution.

Now, before you write the statement itself, it’s important to create a value proposition canvas.

Taking these three elements into consideration, you'll be able to make your own after you build a value proposition canvas.

Value Proposition Canvas

A value proposition canvas is a visual tool that helps you position your business’s product or service around your customers’ needs. The goal of the value proposition canvas is to identify how your business provides value within the market. You can use one when introducing a new offer into the market or when enhancing an existing one.

Value Proposition Canvas Visual

Next up, let’s go over the elements you should include in your value proposition when you’re creating it and publishing it on your website.

Your value proposition will most often appear on your website. While you can include it on marketing campaigns and brochures, the most visible place is your home page and, if you’d like, your product pages.

There are three main elements of a value proposition: the headline, the subheadline, and a visual element.

The headline of your value proposition describes the benefit the customer will receive as a result of making a purchase from your business. The headline can be creative and catchy, but it should be clear and concise, first and foremost.

Subheadline or Paragraph

The subheadline or paragraph should explain in detail what your company offers, who it serves, and why. In this section, you can elaborate on the information in the headline.

Visual Element

In some cases, a video, infographic, or image may convey your value proposition better than words alone can. Enhance your message with these visual elements to capture your audience’s attention.

To better visualize these tools, here are a couple templates to follow when formatting a value proposition.

hubspot 15 free value proposition templates

Headline : "An easy-to-use CRM." 

Subheadline/Paragraph : "HubSpot’s CRM platform has all the tools and integrations you need for marketing, sales, content management, and customer service."

Visual Element :

value proposition example: hubspot

Most companies can benefit from using a CRM — even freelance businesses and small family-owned firms. The problem is that most systems are over-complicated and cobbled together, not to mention expensive.

HubSpot’s value proposition aims to target active CRM users who are tired of handling over-complicated systems, and beginners who are intimidated by legacy options. To that end, the product’s value proposition emphasizes its ease-of-use and ability to synchronize different teams across the business. The brand includes an image of a smiling woman to show what it would be like to use the product in your team (hint: it’s so easy, it’ll make you smile).

HubSpot Value Proposition Canvas

value proposition canvas example: hubspot

Customer Profile

  • Customer Jobs : HubSpot customers need to effectively enable their sales teams to do their best work while avoiding complicated workflows.
  • Gains : Customers want to increase their sales rep productivity levels and boost sales.
  • Pains : There are plenty of CRM options, but they’re often overcomplicated and create silos.
  • Gain Creators : The HubSpot CRM platform offers streamlined contact management software and productivity tools that will help sales teams do their best work.
  • Pain Relievers : The user-friendly interface and unified platform offers ease-of-use and high visibility across systems.
  • Products & Services : The HubSpot CRM platform includes Sales Hub, an enterprise-level sales software that’s simple yet powerful enough to cater to the needs of businesses small and large.

2. FedEx: "Manage your Home Deliveries"

Headline: "Manage Your Home Deliveries"

Subheadline/Paragraph: Sending and receiving packages is convenient and safe for individuals who want to ship ideas and innovations across the globe.

Visual Element:

value proposition examples: FedEx

  • Customer Jobs: FedEx customers want to share ideas and innovations with other individuals by shipping goods around the world.
  • Gains: Customers want a hassle-free way to return online orders and are looking for a safe and secure way to receive their packages.
  • Pains: Returning a package at a FedEx shipping center can be inconvenient, and managing home deliveries can be a hassle.
  • Gain Creators: Customers can drop off their FedEx packages at places they shop most like Walgreens or Dollar General, and have peace of mind knowing where their package is at all times.
  • Pain Relievers: Thousands of FedEx drop-off locations across the country, receive notifications when a package is en route and inform the driver where to leave the package.
  • Products & Services: FedEx Drop Box locations make returning packages convenient, and the FedEx Delivery Manager reroutes or reschedules deliveries to work with the customer’s schedule.

3. LG: "State-of-the-art Living Experience"

Headline: "State-of-the-art Living Experience"

Subheadline/Paragraph: LG SIGNATURE delivers an innovative product design that creates an exceptional living experience for people who want to achieve a state-of-the-art living experience.

value proposition examples: LG Signature

  • Customer Jobs: LG customers want simple, yet innovative technology that helps them achieve a state-of-the-art living experience.
  • Gains: Customers have an intuitive and responsive experience with each appliance they interact with inside their homes.
  • Pains: There are too many unnecessary buttons and features on appliances that get in the way of a simple living experience
  • Gain Creators: Customers can use technology to enhance their home experience without needing to read a manual.
  • Pain Relievers: LG offers a simple design that focuses on the user and their lifestyle.
  • Products & Services: LG SIGNATURE delivers an innovative product design that creates an exceptional living experience.

4. Subaru: "The most adventurous, most reliable, safest, best Subaru Outback ever."

Headline: "The most adventurous, most reliable, safest, best Subaru Outback ever."

Subheadline/paragraph: The 2022 Subaru Outback takes drivers to the most adventurous places in style with the most advanced safety technology.

Visual element:

value proposition examples: Subaru

  • Customer Jobs: Subaru customers want to explore the world’s most adventurous places in a reliable and safe vehicle
  • Gains: Customers want to explore the land in a stylish and spacious SUV and look for advanced technological elements in their vehicles that enhance performance and safety
  • Pains: The safest vehicles are not the most visually appealing, and some SUVs aren’t equipped for all-weather or all-terrain environments
  • Gain Creators: Subarus have a stylish exterior and interior with ample ground clearance that protects the vehicle against damage from the environment and advanced technology to reduce crashes and make long road trips safer.
  • Pain Relievers: Subarus have a rugged blacked-out trim for style and protection, 9.5-inch ground clearance for better stability and performance, and driver-assist technology that helps drivers see better, prevent crashes, manage cruise control, and brake automatically in emergency situations.
  • Products & Services: The 2022 Subaru Outback with standard eyesight assist technology, automatic pre-collision braking, adaptive cruise control, and lane-centering.

5. Samsung: "Get Ready to Unfold Your World"

Headline: "Get Ready to Unfold Your World"

Subheadline/paragraph: This is everything you'd want in a premium, durable, 5G smartphone. Then we made it unfold — revealing a massive screen so you can watch, work and play like never before.

value proposition examples: Samsung Galaxy

  • Customer Jobs: Samsung customers are tech-savvy and follow the latest trends, driven by efficiency and aspirational lifestyles.
  • Gains: Customers want an all-in-one way to enjoy media, work productively, and have a fun experience all in the palm of their hands.
  • Pains: Common smartphones have size limitations that strain entertainment viewing, gameplay, and work capabilities.
  • Gain Creators: Samsung offers a unique and expansive design with capabilities beyond that of an average smartphone, offering the most advanced technology to help customers perform tasks to fulfill work and play.
  • Pain Relievers: Samsung provides a smartphone that displays content in tablet-like viewing and displays up to three apps simultaneously.
  • Products & Services: The Galaxy Z Fold3 5G folding 6.2-inch smartphone with dynamic AMOLED 2X screens, ultra-thin glass with S Penfold edition, and super-strong lightweight armor aluminum frame.

You’ve seen some brilliant value proposition examples, now let’s break down how to make your own.

  • Use HubSpot's free value proposition templates.
  • Identify your customer's main problem.
  • Identify all the benefits your product offers.
  • Describe what makes these benefits valuable.
  • Connect this value to your buyer's problem.
  • Differentiate yourself as the preferred provider of this value.

Step 1: Use HubSpot's free value proposition templates.

value prop templates hubspot

We've crafter 15 value proposition templates, including: 

  • 10 Value Proposition Writing Templates
  • 1 Value Proposition Canvas Template
  • 1 Mission Statement Brainstorm Template
  • 1 Vision Statement Brainstorm Template
  • 1 Competitive Analysis Template
  • 1 Brand Hierarchy Template

Save time in the next few steps by having customized and pre-built templates to craft a unique, stand-out value proposition. 

Step 2: Identify your customer's main problem.

While this will require some upfront research, you can get a head start on this aspect of the value proposition by speaking with different members of your team. Customer service reps, marketing specialists, and salespeople can fill in the gaps about what problems your customers are looking to solve by using your product or service.

For example, let’s say your business sells tax software on a subscription basis and automated templates are included in the software package. Your ideal customer is looking for an affordable and user-friendly way to access complicated tax documents for their business. In this example, your business’s offerings could be the solution they need.

Step 3: Identify all the benefits your products offer.

This step can be as simple as listing out every product you sell and describing its primary benefit. The benefit should be concise and focused on a single customer need.

In our tax software example, you’d list each tax template, explain the benefit it provides, and why a customer would need it.

Step 4: Describe what makes these benefits valuable.

Next, add another sentence that explains why this benefit matters to the customer.

Using the same example above, the value would be that customers have affordable tax documentation at their fingertips — something that would normally cost them thousands of dollars.

Step 5: Connect this value to your buyer's problem.

Next, pair the buyer’s problem to the elements that make your product or service valuable. Do they align? If so, you’re ready to refine your value proposition to differentiate your offerings from the competition. If they don’t align, repeat the steps above until you find a valid buyer need and a viable solution your business offers to meet that need.

There’re three templates we think do an excellent job of connecting value to buyer pain points:

Step 6: Differentiate yourself as the preferred provider of this value.

Finally, polish your value proposition to make it unique. Is there a specific customer service offering your business provides that others don’t? Do you offer any additional services that other companies charge for? These elements can help differentiate your value proposition from competitors while keeping the focus on the buyer’s needs.

Once you understand these steps, you can easily implement them into value proposition templates as follows.

Steve Blank Method

Instead of focusing on the features themselves, Blank saw the need to emphasize the benefits derived from the features in a simple sentence. By following this formula you’ll connect the target market and their pain points to the solution:

“We help (X) do (Y) by doing (Z)”

Geoff Moore Method

Moore provides a template that’s more specific in identifying the industry categories alongside the benefits customers value. This makes a more clear value proposition formula as follows:

“For [target customer] who [needs or wants X], our [product/service] is [category of industry] that [benefits]”

Harvard Business School Method

According to HBS a value proposition is executed best when it answers the following questions:

What is my brand offering?

What job does the customer hire my brand to do?

What companies and products compete with my brand to do this job for the customer?

What sets my brand apart from competitors?

Now that we’ve gone through steps and templates to follow, there’s some tactics we think you should keep in mind.

1. Conduct research to determine the value proposition of your competitors.

Because your value proposition is the differentiating factor between your business and the competition, it’s important to research the propositions of your closest competitors. You can use the value proposition canvas in this post to determine how each company meets the needs of your buyer persona.

Be honest here — it’s tempting to focus on the areas in which your competition doesn’t excel, but you’ll have a better idea of where your product or service fits within the market if you key in on your competitors’ strengths.

2. Explain the value of your products and services.

You’re probably familiar with outlining the features and benefits of your product and service offerings. This tactic takes that concept a step further. By matching the benefits of your offerings to specific values that your customers have, you’ll be able to align what your business provides with what your customers need.

3. Describe the benefits your ideal customer will experience when they choose your product or service over the competition.

When crafting this part of your value proposition, include details about how your product or service will benefit the customer and use examples where you can. Videos, photos, and live demonstrations are all effective ways to illustrate your value proposition because they show the customer exactly what they can expect from your business.

4. Develop a unique value proposition for each buyer persona you serve.

Ideally, you’ll be focusing your marketing efforts on a specific target audience. You’ll also find that this audience will have different needs based on their buying behaviors. Buyer personas can help you segment your larger audience into groups of customers with similar desires, goals, pain points, and buying behaviors. As a result, you’ll need a unique value proposition for each persona. Different products and services you offer may solve certain customer pain points better than others, so developing a value proposition for each persona will better serve each one.

5. Test your value proposition with your audience using various marketing channels.

Each of these tactics will likely be developed internally by your team which means you’ll want to validate your work with your target audience. Your value proposition will be communicated through various marketing channels like your website, social media accounts, video, audio, and in person. Test your proposition with members of your audience (both existing customers and non-customers) using each of these channels. Tools like UserTesting can help you streamline this feedback process so that you can implement changes quickly to finalize your value proposition.

We know the makings of a value proposition, so how can you make it a good one? Here’s the last three tips we have for you.

What makes a good value proposition?

Clear language.

Your value proposition should aim to address a primary customer need. This limited focus helps keep your value proposition clear and easy to understand. With just one main idea to comprehend, your audience will be able to quickly decide whether or not your product or service will be the best solution for them.

Specific Outcomes

Next, you’ll want to communicate the specific outcomes your customer can expect to receive from your product or service. Will they save time? Demonstrate how. Will their workflow become more manageable? Show a before and after workflow diagram. The specific outcomes will be critical components of your value proposition as they’ll exemplify exactly how your customers will use your solution to solve their problems.

Points of Differentiation

Not only are your potential customers evaluating your business’s offerings based on their own needs, but they’re also comparing what you offer against competitors. As a result, your value proposition will need to include detailed points of differentiation. These key points will help customers understand exactly what sets your company apart.

Compose a Remarkable Value Proposition

The factors that influence a potential customer to become a loyal customer are limited. Whether your industry has a lot of opportunities to differentiate (like retail) or virtually no unique identifiers (like dairy), you’ll find that a value proposition will help you understand your ideal customer and position your business as the best solution for their needs. Use the tactics, tips, framework, and examples in this post to craft your unique value proposition.

Editor's note: This post was originally published in June 2018 and has been updated for comprehensiveness.


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15 free value proposition templates to help you brainstorm, write, and promote your value prop.

How to Create a Unique Value Proposition + Examples

value proposition for business plan

If you’re starting your own business you’re probably already thinking about what sets you apart from competitors in your space. Coming up with your unique value proposition (UVP) or unique selling proposition (USP) creates a strong foundation for all your marketing messages and strategies for engaging new customers.

This article is a handy guide that will define what a UVP is, and help you write your own.

What is a unique value proposition (UVP)?

Your unique value proposition (UVP) is the promised value customers can expect from your business. It explains what separates your business from your competitors, how your solution solves your customers’ problems, the specific benefits, and why your target customers should choose you.

In a nutshell, your UVP covers: 

Your UVP should be front and center on your website, and it should be completely free of jargon—it’s like a very short elevator pitch that someone who has never heard of your company before would understand immediately.

What is the purpose of a value proposition?

Your value proposition is designed to introduce your company’s brand to potential customers. It defines what you stand for, what you do, how you operate, and why you should be chosen over the competition. 

Every competitor in your field is vying for attention. From marketing plans to advertisements, consumers hear a lot of noise. To cut through this clutter and turn your target audience into loyal customers, you need a value proposition that mere mortals can understand easily—and remember. You want your customers to hear your name and think, “oh, that’s the company that does (your unique solution).”

How do you write a unique value proposition?

Finding a value proposition takes some time and legwork. A real UVP is more than a clever tagline. For it to be meaningful, you have to know your customer and your business. Plus, you have to understand how your product or service fits into our consumer-driven world.

So while your UVP is probably always in the back of your mind, don’t write it based on what you think is true about your solution and your customers. Do some research and testing so that you are sure.

And for that matter, keep testing. Once you’ve come up with your UVP and put it all over your marketing materials and website’s landing pages, it might be tempting to set it and forget it. Keep testing it over time—the more your business grows, the more you’ll know about your customer’s pain points and how your solution helps them. Here are the five steps needed to develop a value proposition.

1. Define your target market

First, you need to figure out who your customers are. Who will buy (or is buying) your product or service? A lot of first-time business owners want everyone to be a customer; this is a rookie mistake. Marketing to everyone is the opposite of marketing to your target market. If you try to appeal to everyone, your business and product will get lost in the noise. An example of this kind of mistake is a shoe company trying to market to everyone with feet! You’ll waste a lot of time and money that way.

Instead, hone in on exactly who your audience is. Do some market research—both based on your existing customers (if you have them) and other populations you think might be good potential customers. You want to know and understand their pain points—the problems they have that you might be able to solve.

But you’re also interested in their demographic information, income statistics, and family makeup. How old is your target audience ? Are they male or female? What kind of income does your target audience have? Get specific. What does your target audience do on the weekend? What kind of music do they listen to?

You might think these last questions are a bit far-fetched, but you want to create a buyer or user persona of your target audience. A buyer or user persona is a fictional representation of your ideal customer—but it’s a very useful tool to help you hone your messaging and who you consider to be a part of your target market.

You can’t create a unique value proposition alone in your basement, either. You have to test it. Run it by a small group of customers, or people you think are in your target market to ensure it resonates with customers you’re trying to reach.

Define your mission statement to develop your business. Easily write a business plan that reflects your mission. Get LivePlan.

2. Explain why customers should buy from you instead of a competitor

To separate yourself from your competitors, you have to know who they are and what they stand for. Research your competitors inside and out , from their mission statement to the types of employees they have. You can only set yourself apart if you know what’s already been done.

Putting together a competitive matrix can be a helpful way to visualize how you stack up against them. Don’t make the mistake of assuming you don’t have any competition. Every business has competition , even if you’re in a brand new industry. When you’re writing your UVP, see if you can articulate why your customers should buy from you instead of your competitors in ten words or less. If you can’t, keep revising.

3. Define the pain point your product or service solves

Write down how your business or product solves a problem or alleviates a pain point for customers. Can your product do something that other products can’t? Does it save time? Is it more affordable than other products? What about your product or service makes it a must-have for customers—why can’t they live without it?

Take that list and cross off any need pain point that your competitors can claim to address too. Your competitive matrix might be helpful here. Below is an example of how a competitive matrix should look:

value proposition for business plan

This exercise is meant to help you find areas where your business is different than others. Simply having the best product or the best customer service in the market isn’t enough differentiation.

Remember, every business thinks they have the best product. Take some time to figure out how your product meets the needs of your target audience in a way that others can’t.

4. Connect to your company mission and what you stand for

What does your business stand for? It’s a big question, one that takes some time to figure out. Once you have a solid and clear answer, see if your mission overlaps or coincides with the list of things that sets your business apart. Now you’re starting to hone in on your value proposition.

Once you’ve done your digging, write down a few different possible value propositions that fit your business. Again, this isn’t going to be something you whip up in 20 minutes. Write a few down, stew on them for a bit, and refine them. Ask yourself if someone could read your UVP and think it’s talking about another company. If the answer is yes, you have a selling or value proposition, but it’s not unique yet.

Rework it until you have one succinct sentence that makes you stand out from your competitors. What do you want your customers to remember about you when they hear your brand or product name?

5. Craft a single message

Once you’ve defined what you will cover in your value proposition, you need to land on a single core message. Not every pain point or benefit needs to be listed here. You’ve done the research to ensure you are landing on the right message for your audience, the last thing you want to do is overcomplicate communications

Focus on communicating one key value that connects to your customer’s pain point. The goal is to hook their interest so that they want to explore what else you have to offer. If they take that first step, then look for opportunities to elaborate on the additional value you provide.

Additionally, just because you’ve honed in on a core value proposition, doesn’t mean that it can’t change. You may need to make adjustments for sub-sections of your audience, change out keywords for different platforms, and even fully restructure your UVP if it doesn’t resonate. 

The key here is to not just write up your UVP and walk away. Look for opportunities to test it directly with your target audience either through interviews, surveys, or even through live testing. 

4 examples of great value propositions

One of the best ways to learn is by example, so let’s take a look at a few businesses that have created unmistakably unique selling propositions.

The Mast Brothers Chocolate

This duo of bearded, lanky brothers creates chocolate bars by hand . Their dedication to their craft alone is unique, but the brothers have infused their love of old-time traditions into their business.

When they need to purchase more cocoa beans, they charter a wooden sailboat to stay true to their pioneer-like roots. Now that’s a unique position you can market.

Dollar Shave Club

This online business sells and ships razors and blades to its audience for a buck. They poke fun at the fancy, vibrating 10-blade razors that are on the market today and encourage men to go back to basics.

But, don’t think that means they’re selling an inferior product. Their slogan is: “Our blades are f***ing great,” a tagline that points to (but isn’t the same as) their selling proposition. Remember, if other companies can also say their product is “great,” you have a catchy tagline, not something that sets you apart from the competition.  


Here’s a business that created a value proposition by catering to a very specific audience. Ellusionist is an online store that sells playing cards to magicians.

Some of the decks are marked, others have a vintage appearance, but the variations are meant to build showmanship for its unique target audience.

Palo Alto Software

Shortly after publishing this article, one of our readers asked if we could share our own USP. Bplans is a resource offered by Palo Alto Software, so here’s what Noah Parsons, our chief operating officer, has to say about our UVP:

For Palo Alto Software, our goal is to provide entrepreneurs with the tools, knowledge, and know-how to help them grow faster and better than their competition.

We’re not just in it to make a buck—we actually want to help people succeed in business as much as possible. Our commitment to entrepreneurs is shown in our thousands of pages of free content that helps demystify the complexities of starting and running a business.

We also provide simple yet powerful tools for entrepreneurs so they can focus more on doing what they love and less on trying to build and understand complex reports and spreadsheets.

Create a compelling value proposition

The process to land on what differentiates your business and resonates with your audience is well worth the effort. Not only will it help you define a compelling value proposition, but it will make it far easier to streamline your focus as a business owner. Everything from developing audience personas to crafting and testing copy, it encourages you to work through the needs of your customer.

If you’re struggling to work through these steps the best thing you can do is revisit your business plan . It should have everything you need including the problem you’re solving, how your business operates, who your ideal customers are, and what your business stands for. 

*Editor’s note: This article was originally published in 2018. It has been updated for 2021.

AvatarLisa Furgison

Lisa Furgison

Lisa Furgison is a journalist with a decade of experience in all facets of media.

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7 of the Best Value Proposition Examples We’ve Ever Seen

Dan Shewan

Your business’s value proposition is arguably the most important element of your overall marketing messaging. A value proposition tells prospects why they should do business with you rather than your competitors, and makes the benefits of your products or services crystal clear from the outset.

Unfortunately, many businesses either bury their value proposition in buzzwords or trite, meaningless slogans, or don’t bother highlighting it on their site and in their marketing campaigns – or they don’t figure out what it is at all!

Today, we’ll be looking at seven of the best unique value proposition examples we’ve come across. We’ll go over what makes them so compelling, some ideas for developing or refining your own value proposition, and things you should bear in mind when incorporating your value proposition into your website and marketing materials. There’s a fair bit to cover, so let’s dive right in.

1. Uber – The Smartest Way to Get Around

Few tech companies are as polarizing or widely criticized as Uber. As one of the most vocal proponents of the empowerment offered by the so-called “gig economy,” Uber has deservedly taken a lot of heat for denying its drivers the basic protections afforded to legal employees, been subject to national and even governmental scrutiny for its decision to incorporate in Bermuda to avoid its corporate tax obligations, and is generally the poster child for why everyone hates Silicon Valley’s unique brand of “disruption.”

One thing Uber most definitely does right, however, is its unique value proposition.

Value proposition examples Uber

Uber’s value proposition, offering uber convenience

Without explicitly saying so, Uber expertly highlights everything that sucks about taking a traditional taxi and points out how its service is superior. The simple (yet highly effective) copy above, taken from the Uber homepage, excellently conveys the simplicity and ease that lies at the heart of what makes it such a tempting service:

Everything about this directly contrasts the typical experience of getting a taxi – no phone calls to disinterested dispatchers, no painful conversations trying to explain to a stressed-out cabbie about where you need to be, and no fumbling for change or worrying you’ve got enough bills in your wallet. Just a fast, efficient way to get where you’re going. This is reinforced by the aspirational messaging toward the top of the Uber homepage, which states that “Your day belongs to you.”

Related: 13 (Really) Good Elevator Pitch Examples & Templates

At this point, it’s worth comparing Uber’s value proposition with that of rival company Lyft. The two companies’ offerings are virtually identical, which is what makes a direct comparison of the two so interesting. Take a look at this information from the Lyft homepage:

Value proposition examples Lyft

Lyft’s step-by-step value proposition

Structurally and thematically, Lyft’s homepage is very similar to Uber’s. However, there’s some key differences here that highlight how Uber’s value proposition is more clearly positioned.

Firstly, Lyft does score some points for including several step-by-step images of the Lyft experience, helping visitors visualize what taking a ride with Lyft is like. However, look at the copy for the first step of the process. It lists the three tiers of Lyft service – Lyft, Lyft Line, and Lyft Plus – but doesn’t explain the difference between these service tiers, or tell the prospect why they should choose between them.

Also, while clearly explaining the final stage of the process – paying and rating the driver – this information implies that there is a final definitive action required by the user, something Uber does not. Personally, I almost always try to rate my Uber drivers (bearing in mind the oft-speculated “secret” rating of around 4.6 out of 5 that many believe serves as the performance benchmark for Uber drivers ), but I don’t have to. Sometimes I’ll forget about it and just get on with my day – it certainly isn’t required, and nor is manually paying my driver. For a service built on the notion of efficiency and convenience, this is a big deal.

Now, one could argue that Lyft does a better job of being transparent about what users can expect, an argument that definitely has merit, especially if you’ve ever been stung by Uber’s unexpected “surge” pricing. However, for two such similar services, I’d argue that Uber’s value proposition is more clearly positioned, and certainly more persuasive than that of Lyft – an important distinction if you’re operating in a crowded market with several similar competitors.

Free download: Master Google Ads with our free PPC 101 guide.

2. Apple iPhone – The Experience IS the Product

Even in today’s oversaturated consumer electronics marketplace, it’s hard to imagine a more iconic product than the Apple iPhone. It’s also difficult to imagine a product with as much competition as Apple’s flagship mobile device, so what sets the iPhone apart from the (literally) hundreds of competing devices on the market?

Value proposition examples iPhone

Apple’s iPhone value proposition, offering unique experience

As you’d probably expect from Apple, a firm renowned as much for its commitment to sleek, elegant product design as its actual products, Apple firmly reiterates its value proposition in the copy about its iPhone range of products – specifically, the design of the device itself, the ease of use that has been a cornerstone of Apple’s design aesthetic since the launch of OS X, and the aspirational qualities that an iPhone supposedly offers the user.

This aspirational messaging is Apple’s value proposition.

Take a look at the copy. Apple states that it believes a phone “should be more than a collection of features” – yet this is precisely what a smartphone is. We could sit here and poke fun at Apple’s lofty design aesthetic for days (the #freejonyive hashtag on Twitter , which jokes that Apple’s lead designer has been trapped in a white room for several years, is a prime example), but it’s a remarkably effective approach that has helped Apple remain at the forefront of a brutally competitive market for almost a decade.

Value proposition examples Free Jony Ive #freejonyive

Jony Ive (#freejonyive)

Apple knows how crowded and competitive the smart device market is, so rather than focus on a specific feature – virtually none of which are unique to the iPhone or iOS – the company instead opts to focus on the experience of using an iPhone. Most companies couldn’t pull off using words such as “magical” to describe using a smartphone, but Apple can.

Of course, Apple doesn’t just sit on its proverbial laurels and rely on aspirational messaging to sell you on its value proposition. The official iPhone site also touches on several of the genuinely unique features of iPhone and iOS to make its case, including security:

Value proposition examples iPhone security features

Apple iPhone value proposition, focusing on security

Not only is this a very clever move on Apple’s part (especially in the wake of the disastrous FBI San Bernardino iPhone unlocking lawsuit ), but the copy matches the rest of Apple’s messaging perfectly and manages to simplify an incredibly complex topic – encryption – into easily understandable language that most users can grasp and feel good about.

Apple understands that even focusing on the unique features of iPhone wouldn’t be enough to distinguish the device in such a crowded market. By emphasizing the overall experience of using the device, however, Apple’s value proposition is as unique as its approach to product design and aesthetics.

You can find more great Apple marketing campaigns in our epic product marketing examples post .

3. Unbounce – A/B Testing Without Tech Headaches

Moving away from the world of consumer-facing electronics and apps and veering into B2B territory, our fifth value proposition example comes from our friends at landing page optimization platform Unbounce.

Value proposition examples Unbounce

Unbounce’s value proposition, offering ease of use

As you might expect from a company specializing in conversion rate optimization , Unbounce’s value proposition is abundantly clear from the moment you arrive on the homepage, namely the ability to build, publish, and test landing pages without any I.T. support. For many small businesses (and even larger companies), the perceived technical overhead of A/B testing is a major barrier to entry, making Unbounce’s value proposition particularly appealing.

This homepage also boasts a number of other features that make the overall experience very compelling, such as a strong, unmissable CTA, and a simple three-step visual representation of how Unbounce’s solution works. The copy also clearly states that Unbounce is primarily aimed at marketers (a clear indication of understanding and appealing to a highly specific target audience ), as well as the fact that users can create mobile-responsive landing pages, which itself addresses a very specific need or concern for some marketers.

Great stuff all around.

4. Slack – Be More Productive at Work with Less Effort

The world seems to be divided into two types of people; those who love Slack, and those who haven’t tried it yet. For the uninitiated, Slack is a workplace productivity and messaging app. It’s deceptively simple to use, yet robust enough for large teams working on complex projects (as evidenced by Slack’s very clever inclusion of the NASA Jet Propulsion Lab example on the homepage), so what sets Slack apart from the thousands of other messaging and productivity apps ?

Value proposition examples Slack

Slack’s value proposition, focusing on credibility and productivity

Essentially, Slack distills its value proposition in the example above – it makes users’ “working lives simpler, more pleasant, and more productive.” The NASA JPL example is also very clever in that it subtly implies that if it’s good enough for large teams of scientists at NASA – the kind of people who put robots on other planets – then it’s good enough for anyone.

However, while this might seem like the value prop of virtually every productivity app on the market, Slack has several advantages that support its core value prop of making collaboration simpler.

For one, few (if any) other productivity apps boast as many integrations as Slack does. This means that its almost guaranteed to fit into just about any company’s existing communications workflow. It’s this diversity of supported apps that has helped Slack almost singlehandedly dominate the workplace productivity space.

Value proposition examples Slack

“Slack: All your tools in one place.”

Simplicity is also a core theme at the heart of Slack’s value proposition. After all, it’s hard to get more done if the app that promises to help you do that is a pain in the ass to use. The premise of “find anything, anywhere, anytime, from any device” is another selling point Slack users routinely evangelize about, and for good reason.

Value proposition examples Slack

“Slack: Search your entire archive.”

I won’t dissect every aspect of Slack, but suffice to say that the messaging and positioning of Slack essentially addresses every common pain point you can think of about collaborating with others at work, then simplifies it in an almost irresistible way. To newcomers, it may even seem too good to be true, which is arguably why Slack has become so insanely popular (and helped the company achieve a breathtaking $3.8 billion valuation ). Reading over Slack’s website, you can almost feel the sighs of relief that Slack promises.

Slack’s mantra of “Be Less Busy” isn’t just a catchy slogan – it’s the company’s value proposition neatly summarized into three beautifully simple words.

5. Digit – Save Money Without Thinking About It

The world of personal finance is another ruthlessly competitive space, and there are tens of thousands of apps designed to help people manage their money more effectively. However, few have as good a value proposition as Digit, a relatively new service that helps users “save money, without thinking about it.”

Value proposition examples Digit

Digit’s value proposition, offering hands-off savings

Digit allows users to securely connect their bank accounts to the Digit service, which then algorithmically examines users’ spending habits and regular expenses. It then begins to “optimize” users’ accounts to squirrel a little money away here and there into an FDIC-guaranteed savings account, from which users can withdraw their savings at any time.

The key differentiator of Digit from other savings apps is that the process is entirely automated. Users literally don’t have to do a thing for Digit to start putting money into a saving account; a few bucks here, a few bucks there, and before you know it, you’ve got a decent amount put away for a rainy day, all the while maintaining sufficient funds for regular outgoing expenses to be taken care of. It’s actually kind of amazing.

Saving can be a major financial hurdle for many people, especially those on reduced or limited incomes. By automating the entire process, Digit offers users a completely hands-off solution to saving. It’s not for everyone – but then again, no product, service, or app is – but it is unique, and its value proposition makes this clear.

6. LessAccounting – Bookkeeping, Without the Hassle

For most people (read: people who aren’t CPAs or accounting professionals), bookkeeping is a pain in the ass. It’s confusing, time-consuming, and generally an utterly miserable experience, even if your business’ books are relatively simple ( more emotional words and phrases here ). That’s what makes LessAccounting’s value proposition so compelling.

Value proposition examples LessAccounting

LessAccounting’s value proposition, offering improved quality of life

LessAccounting’s entire premise is built upon simplifying accounting and bookkeeping, and its value proposition is reinforced throughout the site. The homepage’s tagline – “Make your life easier with our accounting software” – makes this immediately apparent, and as you navigate through the site, you’re constantly reminded of the product’s value proposition, namely that no other bookkeeping software makes accounting as simple and painless as LessAccounting.

Although LessAccounting is available for larger businesses, it’s primarily aimed at small operations such as freelancers and small-business owners, and its messaging reflects this at every stage of the funnel. From blog posts that answer questions that newcomers to accounting are likely to have, to case studies featuring small-business owners praising the product’s simplicity and ease of use, every aspect of LessAccounting’s messaging focuses on how much easier and simpler your life will be by using LessAccounting.

7. CrazyEgg – Website Behavior Tracking at an Unbeatable Price

Figuring out precisely how people are using your website is a major challenge for many businesses. You might think you have a good idea about your users’ behavior, but without hard, actionable data, you can’t know for certain. That’s where CrazyEgg comes in.

Value proposition examples CrazyEgg

“CrazyEgg: Want to make your site better?”

CrazyEgg is an analytical tool that allows users to view heatmaps of how people are actually interacting with a website. Users can see cursor movements, scroll depth , and all sorts of other cool behavioral tracking features that let them really understand how people are interacting with their website.

However, CrazyEgg is far from the only player in the behavioral tracking space – so what’s the value proposition? That no other service provides more functionality and insight for a better price, with as little hassle, as CrazyEgg does.

Value proposition examples CrazyEgg

“CrazyEgg: Like a pair of x-ray glasses”

The smart folks at CrazyEgg realize that not everyone who visits their site will be familiar with the concept of heatmaps or behavioral tracking, so they provide visitors with a friendly, accessible overview of CrazyEgg’s features to simplify what the product does. If you scroll beyond this overview, you get to the real meat of CrazyEgg’s value proposition:

Value proposition examples CrazyEgg

CrazyEgg’s value proposition, answering intuitive FAQ’s with active diction 

The site lists all the things users can do with CrazyEgg, cleverly using active verbs to show visitors how much better their lives will be by using it. This list tempts would-be users with the prospects of making their budgets go farther, advocating for site changes using actionable data, making testing and analytics easier and more efficient, as well as the promise of more conversions and heightened engagement.

It then goes on to highlight the ease of use with which CrazyEgg can be implemented, emphasizing the fact that there is virtually zero technical overhead for using the product, before stating another core aspect of its value proposition, namely that it’s the most fully featured product of its type in its price range.

When you consider the overall flow of this page, it’s very clever indeed. It uses simple, accessible language and poses a question designed to pique users’ interest, before providing a clear overview of what you can do with it, and then seals the deal by highlighting the central elements of the value proposition.

Nailing your own value prop

Hopefully these value proposition examples have given you some ideas of how you can improve or clarify your business’ value proposition. You don’t need an immense marketing or design budget to put what makes your business the best front-and-center in your messaging – just a little focus and a moment or two to consider your site from the perspective of your users.

Meet The Author

Originally from the U.K., Dan Shewan is a journalist and web content specialist who now lives and writes in New England. Dan’s work has appeared in a wide range of publications in print and online, including The Guardian, The Daily Beast, Pacific Standard magazine, The Independent, McSweeney’s Internet Tendency, and many other outlets.

See other posts by Dan Shewan

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What Is a Value Proposition?

Understanding value propositions, special considerations, frequently asked questions.

Business Essentials

Value Proposition: How to Write It With Examples

value proposition for business plan

Investopedia / NoNo Flores

A value proposition in marketing is a concise statement of the benefits that a company is delivering to customers who buy its products or services. It serves as a declaration of intent, both inside the company and in the marketplace.

The term value proposition is believed to have first appeared in a McKinsey & Co. industry research paper in 1988, which defined it as "a clear, simple statement of the benefits, both tangible and intangible, that the company will provide, along with the approximate price it will charge each customer segment for those benefits."

Key Takeaways

Value Proposition

A value proposition stands as a promise by a company to a customer or market segment . The proposition is an easy-to-understand reason why a customer should buy a product or service from that particular business. A value proposition should clearly explain how a product fills a need, communicate the specifics of its added benefit, and state the reason why it's better than similar products on the market. The ideal value proposition is to-the-point and appeals to a customer's strongest decision-making drivers.

Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain a company's economic moat . An economic moat is a competitive advantage. The moat analogy—coined by super-investor  Warren Buffett of Berkshire Hathaway—states that the wider the moat, the bigger and more resilient the firm is to competition.

A great value proposition demonstrates what a brand has to offer a customer that no other competitor has and how a service or product fulfills a need that no other company is able to fill.

Components of a Value Proposition

A company's value proposition communicates the number one reason why a product or service is best suited for a customer segment. Therefore, it should always be displayed prominently on a company's website and in other consumer touch points. It also must be intuitive, so that a customer can read or hear the value proposition and understand the delivered value without needing further explanation.

Value propositions that stand out tend to make use of a particular structure. A successful value proposition typically has a strong, clear headline that communicates the delivered benefit to the consumer. The headline should be a single memorable sentence, phrase, or even a tagline. It frequently incorporates catchy slogans that become part of successful advertising campaigns .

Often a subheadline will be provided underneath the main headline, expanding on the explanation of the delivered value and giving a specific example of why the product or service is superior to others the consumer has in mind. The subheading can be a short paragraph and is typically between two and three sentences long. The subheading is a way to highlight the key features or benefits of the products and often benefits from the inclusion of bullet points or another means of highlighting standout details.

This kind of structure allows consumers to scan the value proposition quickly and pick up on product features. Added visuals increase the ease of communication between business and consumer. In order to craft a strong value proposition, companies will often conduct market research to determine which messages resonate the best with their customers.

Value propositions can follow different formats as long as they are unique to the company and to the consumers the company services. All effective value propositions are easy to understand and demonstrate specific results for a customer using a product or service. They differentiate a product or service from any competition, avoid overused marketing buzzwords , and communicate value within a short amount of time.

For a value proposition to effectively turn a prospect into a paying customer, it should clearly identify who the customers are, what their main problems are, and how the company's product or service is the ideal solution to help them solve their problem.

What Is the Purpose of a Value Proposition?

A value proposition is meant to convince stakeholders, investors, or customers that a company or its products or services are worthwhile. If the value proposition is weak or unconvincing it may be difficult to attract investment and consumer demand.

What Is an Employee Value Proposition?

An employee value proposition (EVP) applies to the job market. Here, a company that is hiring will try to frame itself as a good place to work, offering not only monetary compensation but also a range of benefits, perks, and a productive environment. In return, the job candidate will need to convince the hiring company that they have the appropriate skills, experience, demeanor, and ambition to succeed.

What Happens if a Value Proposition Fails?

If a company cannot convince others that it has value or that its products or services or valuable, it will lose profitability and access to capital and may ultimately go out of business.

Lanning, Michael J., and Edward G. Michaels. "A business is a value delivery system."  McKinsey staff paper  No. 41. July, 1988.

CNBC Warren Buffett Archive. " Morning Session - 1995 Meeting ."

Alexander Osterwalder et al. " Value proposition design: How to create products and services customers want. Vol. 2." John Wiley & Sons, 2015.

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How to Write a Business Plan "Concept and Value Proposition" Section

A key component of your business plan is your business concept and value proposition, which is the clear articulation of why customers should choose your solution over that of your competitors.

This section of the plan for developing your business concept and positioning your value proposition follows the executive summary and company history , so readers should already have a general idea of what your company does, who it's for, and what your long-term goals are for the business.

The business concept comprises your vision of the company, explaining the value your product or service will bring to the customer, why you are especially qualified to offer it, as well describing your offering's uniqueness and growth potential  within your industry.

This section enables you, as well as interested parties and potential investors, to research and analyze the concept for feasibility, both from a market and financial perspective. Keep in mind that everything in your business plan must relate back to the value and benefits your product or service provides to your target customers.

The Feasibility Test

Think of a feasibility test as a reality check for your business idea. The goal of conducting a feasibility test is to prove to yourself and your team or investors the probability of your product or service being successful within your industry.

A feasibility test should be as low-cost as possible and should revolve around creating a Minimum Viable Product (MVP) or simple proof of concept, which communicates the most simple, basic value propositions of your future product or service.

According to Entrepreneurship For Dummies, by Kathleen Allen, a feasibility test weighs the validity of your business concept by examining four main points:

By this stage in your business plan, you should have a firm grasp on what product or service you intend to offer, as well as who you believe will be your primary customer. The final item requires weighing various distribution channels, but, again, should be answerable with a little legwork.

The Value Proposition

Your value proposition is what makes customers choose you instead of the competition. It's part marketing, part operations, and part strategy; your value proposition is the foundation of your competitive advantage.

On a subconscious level, customers will compare the value proposition of your company against those of your competitors when deciding where to take their business. With that in mind, here are a few things to remember when writing your value proposition:

Distribution Strategy

After you've validated your business idea with a small group of paying customers, the last part of the business concept is to determine how you will deliver your product to your customers at scale. Taking a manual approach to reaching your first customers is necessary, but won't work as you grow your business. Are you going to sell directly to consumers? Through strategic partnerships? Retail distributors?

Consider these several factors when planning the distribution strategy for your business:

Vision is important if your business is going to grow. The more focus your business concept has in terms of clear solutions for a like-minded niche group of people, the greater the likelihood that you'll attract the best investors and customers.

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.st0{fill:#717073}.st1{fill:#3c88ad} .st0{fill:#717073}.st1{fill:#3c88ad} For people growing great ideas | Kauffman Entrepreneurs |

Value Proposition

A value proposition defines the benefits your company’s products and services offer to the customer. This short statement, based on your Business Concept Statement, should express the essence of your business in a way that compels the customer to buy.

It’s important to expend the necessary time and effort to craft a compelling value proposition since it will form the basis for all your sales, marketing, and product development efforts. The value proposition is also part of your Business Plan.

A value proposition is a valuable tool to guide your marketing efforts. Here are some benefits that you will receive by having a clear, compelling value proposition:

Follow these guidelines to create a value proposition that will compel customers to buy your product or service:

Research and test your value proposition. Ensure that your message strikes the right note with the right people.

© 2007 Ewing Marion Kauffman Foundation. All rights reserved.

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How do I use the Value Propositions building block of the Business Model Canvas?

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Your value proposition describes the bundle of products and services that create value for a specific customer segment., questions to ask.

More about Value Propositions

Your Value Proposition is the reason why customers turn to your company over another. It solves your customer’s problem or satisfies your customer’s need. Each Value Proposition consists of a selected bundle of products and/or services that caters to the requirements of a specific Customer Segment. In this sense, your Value Proposition is an aggregation, or bundle, of benefits that your company offers customers. Some Value Propositions may be innovative and represent a new or disruptive offer. Others may be similar to existing market offers, but with added features and attributes.

Types of Value Propositions

Your Value Proposition creates value for a Customer Segment through a distinct mix of elements catering to that segment’s needs. Values may be quantitative (e.g. price, speed of service) or qualitative (e.g. design, customer experience). Elements from the following non-exhaustive list can contribute to customer value creation:

Some Value Propositions satisfy an entirely new set of needs that customers previously didn’t perceive because there was no similar offering. This is often, but not always, technology related. Cell phones for instance, created a whole new industry around mobile telecommunication. On the other hand, products such as ethical investment funds have little to do with new technology.


Improving product or service performance has traditionally been a common way to create value. The PC sector has traditionally relied on this factor by bringing more powerful machines to market. But improved performance has its limits. In recent years, for example, faster PCs, more disk storage space, and better graphics have failed to produce corresponding growth in customer demand.


Tailoring products and services to the specific needs of individual customers or Customer Segments creates value. In recent years, the concepts of mass customization and customer co-creation have gained importance. This approach allows for customized products and services, while still taking advantage of economies of scale.

“Getting the job done”

Value can be created simply by helping a customer get certain jobs done. Rolls-Royce understands this very well: its airline customers rely entirely on Rolls- Royce to manufacture and service their jet engines. This arrangement allows customers to focus on running their airlines. In return, the airlines pay Rolls- Royce a fee for every hour an engine runs.

Design is an important but difficult element to measure. A product may stand out because of superior design. In the fashion and consumer electronics industries, design can be a particularly important part of the Value Proposition.


Customers may find value in the simple act of using and displaying a specific brand. Wearing a Rolex watch signifies wealth, for example. On the other end of the spectrum, skateboarders may wear the latest “underground” brands to show that they are “in.”

Offering similar value at a lower price is a common way to satisfy the needs of price-sensitive Customer Segments. But low-price Value Propositions have important implications for the rest of a business model. No frills airlines, such as Southwest, easyJet, and Ryanair have designed entire business models specifically to enable low cost air travel. Another example of a price-based Value Proposition can be seen in the Nano, a new car designed and manufactured by the Indian conglomerate Tata. Its surprisingly low price makes the automobile affordable to a whole new segment of the Indian population. Increasingly, free offers are starting to permeate various industries. Free offers range from free newspapers to free e-mail, free mobile phone services, and more (see p. 88 for more on FREE).

Cost reduction

Helping customers reduce costs is an important way to create value., for example, sells a hosted Customer Relationship management (CRM) application. This relieves buyers from the expense and trouble of having to buy, install, and manage CRM software themselves.

Risk reduction

Customers value reducing the risks they incur when purchasing products or services. For a used car buyer, a one-year service guarantee reduces the risk of post-purchase breakdowns and repairs. A service-level guarantee partially reduces the risk undertaken by a purchaser of outsourced IT services.


Making products and services available to customers who previously lacked access to them is another way to create value. This can result from business model innovation, new technologies, or a combination of both. NetJets, for instance, popularized the concept of fractional private jet ownership. Using an innovative business model, NetJets offers individuals and corporations access to private jets, a service previously unaffordable to most customers. Mutual funds provide another example of value creation through increased accessibility. This innovative financial product made it possible even for those with modest wealth to build diversified investment portfolios.


Making things more convenient or easier to use can create substantial value. With iPod and iTunes, Apple offered customers unprecedented convenience searching, buying, downloading, and listening to digital music. It now dominates the market.

Learn how to map, design, assess and test business models.

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