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value proposition

How to Write a Value Proposition for Your Company

By Wendy Maynard on July 19th, 2010

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Why should your ideal customer purchase from you rather than anybody else?

If you can answer this question in a sentence, then you have a strong and unique value proposition. A strong and differentiated value proposition can go a long way to position your business to succeed in your target market. It is the promise of your brand.

Without exception, Kinesis clients have a company that focuses on delivering incredible value to their customers. Ironically, many of these same clients came to us without a clearly-defined value proposition – while they provide high value, they did not have a concise way of describing the value. Many businesses face the same problem of conveying vague messages about their products and services. I’m going to help to make sure you aren’t in this situation.

What is a Value Proposition?

Let’s start by making sure we are all on the same page: A strong value proposition speaks directly to your target audience and it tells them exactly why they should purchase your products and services (and in the case of non-profits, it’s why your donors should support your organization, members should join your programs, etc.). A value proposition is a clear statement of the concrete results a customer will get from purchasing and using your products and/or services.

A value proposition is a short statement that tells your prospect why they should buy from your company. It is focused on outcomes. Your value proposition distills all the complexity of the value you provide into an easy-to-remember phrase that your client can easily grasp and remember. This helps spread word-of-mouth marketing and it differentiates you from the competition. Keep in mind that your value proposition should identify and remedy an unmet need that your customers face. It should relieve their pain.

How Do I Plan My Value Proposition?

Regardless of the size of your business or the type of industry you are in, your company should have a value proposition. To help you, here are some guidelines to follow in creating one for your business. A strong value proposition does the following:

  • Creates interest, so that your prospects ask questions and want to learn more. Your value proposition opens the door so that someone might be willing to meet with you instead of blowing you off when you call or mail them for the first time
  • Differentiates your offer from your competitors’ offers and creates a strong differential between you and your competitors
  • Increases the quantity and quality of your sales leads and makes conversion to a customer much easier
  • Wins your business greater market share in your targeted segments
  • Aligns your business operations more closely to customer needs
  • Focuses on your customers’ point of view.
  • Include demonstrated results that will catch the attention of decision-makers–results like increased revenues, decreased costs, improved operational efficiency, and faster times.

Examples of Strong Value Propositions

Business Consultant: Our clients grow their business typically by a minimum of 30-50% over the year while cutting costs by 35%.

Hubspot: B2B companies recognized a 61% lower cost per lead and increased their organic traffic and lead conversions by an average magnitude of six-fold in 6 months.

Sales Trainer: I help salespeople crack into corporate accounts, speed up their sales cycle and win big contracts. One of my recent clients won a verbal commitment for $5M in business in just 90 days.

Internet Marketing Company: Our products help people leverage the internet to triple their market reach and cut marketing costs in half when launching new products.

Are you starting to get a feel for a strong value proposition?

How Do I Write My Value Proposition?

Crafting a value proposition requires insight on what is unique about your company and your products/services. Your existing customers are your best resource to learn the value you offer. Your goal is to learn how your customers define value – not you. Call or visit some of your customers who started using your product or service in the past 6-12 months.

They remember what things were like BEFORE they started working with your company so they can most readily tell you the value of your offering. Tell them you need help understanding the real value of your offering and that you’d like a chance to learn their perspective. Most people will be more than happy to oblige.

 

Hire Kinesis to grow your business

Developing a value proposition is one of foundations that we emphasize in our work with business leaders. Click here to learn more about the Kinesis approach to marketing and business consulting.

Wendy Maynard

Wendy Maynard is the Strategic Director and co-founder of Kinesis, an award-winning marketing firm and business consultancy. She has over two decades of experience as a marketing strategist, business consultant, and executive coach. You can find her on Twitter and

Read more of Wendy's blog posts.


Comments (32)

  • Carl Martin says:

    I can see the value of the value proposition. Certainly, finding the right one which connects with the customer is a challenge. Your examples help. My niche market is for one-time purchase of highly specialized software. Thanks for the insights.

    • Jake says:

      Very good article with lots of valuable insight. There is a value proposition video out there too now called present4, might be worth taking a look at.

  • Nicol says:

    Thanks for the insight. I understand the importance of a value proposition and the impact it will have on my business.

  • Simon says says:

    I am in the process of starting a small B2B business. The problem I have writing this value proposition is that my value proposition will have nothing to found on except that I am an experienced professional and the price for my service is competitively low.

    • Simon,

      Whether you are marketing B2B or B2C, to succeed you must have a point of differentiation. Otherwise, why will anyone hire you over any of your competition. There are a lot of other businesses that have experience with low prices. It’s not easy, but keep at it. You might consider reading “Start with Why” by Simon Sinek.

      Best, Wendy

  • MAB says:

    I want to thank you soooo very much for this article! I have to write a marketing plan for my LAST college course. I was having a little trouble determining the value proposition statement. However, your article has helped me figure one out. I don’t know how to express how grateful I am to you!

  • vj says:

    am working as a sales person in a contact ceter solution provider company.. can u suggest me a pvalue proposition for me

  • Jack says:

    Thanks for the article. I’m in the process of packaging my offer and need a strong value proposition to win clients through my website. Thanks for the clear, concise explanation.

  • Joel says:

    Thank you so much. My new product is so unique and useful that it was fun to write several value propositions. I’ll contue to tweek them until I finally merge them into one concise and clear statement…based on customer feedback, of course.

  • Cliff says:

    I own a driving school and I want to make a value proposition to an organization on driver safety education program. So far, I have only worked with individuals as I am a small operator. I have never worked on B2B with this service. How can I approach them if my experience is for only individuals. Appreciate if you can give me some ideas.

  • Wendy Maynard says:

    Hi Cliff,

    You may have to wait until you service some of your B2B customers. While you can make an educated guess at this point, you won’t really know what they truly value until you ask them.

    Best of success, Wendy

  • Bill Creamer says:

    I have been creating Value Propositions for years and getting paid quite well. I can tell you it is the cornerstone of any successful business. It aligns the company and focuses resources. I have created a business model around it and call it the Value Creation Lab.

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    How does each of these value propositions generate revenue?

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