Defining Your Product's Value Proposition: Tips and Examples

A value proposition is the foundation of marketing strategy and business development. Starting a marketing campaign without defining a value proposition is like polishing the paint of a car that has no engine. It'll produce no effect.

So, what is a value proposition?

A value proposition is a statement that conveys to the buyer why they should choose your product. The ideal value proposition attracts a buyer in just a few seconds. It clearly indicates the product's benefits that make it unique and worthwhile.

It sounds simple, but you might be surprised how long it sometimes takes to formulate the right value proposition. As a design agency, we know how important it is for effective product design to lay foundations such as the value proposition. Some teams require a series of workshops just to define the value proposition for a product they've been working on for a long time. The good news is that every product has a value proposition. Let's look at how to find it.

How to Write a Value Proposition for Your Product

A value proposition is often compared to a promise to the customer. To make the right promise, you first need to know who your product is for. Another obvious point is knowing all the product benefits that buyers value, especially those they consider unique. Starting from there, you can ask your team and yourself the following questions:

How does the product satisfy customer needs?
What customer goals does the product help achieve?
What sets the product apart from competitors?
What feelings does the product evoke in the customer?

If the answers to these questions are unclear, you may need to conduct market research or a series of interviews with potential customers. When defining a value proposition, don’t rely solely on the product manager or business developer. It’s about the customers and their relationship with the product.

Value Proposition Canvas

One of the best tools used to define a product's value proposition is the "Value Proposition Canvas"/

Below is a simple step-by-step guide to using this tool:

Fill in each segment of the above canvas. Analyze your customer, their pains, desired gains, and customer jobs – what they need to do to satisfy their needs. On the other side, examine products and services: which products solve customer problems, create gains, and how they do it. Each segment can contain a list of items.
Assess the importance of each item to the customer. The highest-rated products that match the highest-rated customer needs form the value proposition.
Test the value proposition draft on customers. Make adjustments based on test results if necessary.
Analyze the company's competitive advantages across key elements of the value proposition. Conduct competitor research to determine steps needed to ensure your value proposition's uniqueness.

Before and After Defining Your Product's Value Proposition

Here is what a good value proposition should look like:

Clear. Use words that are easy to understand. When your buyer sees the value proposition, they only need a few seconds to decide if it's interesting. You don't want them spending that time deciphering fancy words. Even if your target audience consists of scientists, stick to language understandable by senior undergraduates.
Unique. The ideal value proposition has something that sets it apart from competitors. Uniqueness sells, everyone knows that. So take this seriously and do thorough competitor research. If you think your product has no competitors, think twice. It's normal for a product owner to be so passionate about their product that they can't imagine why someone wouldn't use it. Nevertheless, competitor analysis is crucial for defining the value proposition, as well as at many other stages of product development.
Concise. Less words – more meaning. This may be the hardest point, but a concise value proposition is a sign of product integrity and uniqueness. You'll see this in the examples below.

And here's a list of what to avoid:

Don't try to mention ALL the benefits of your product in the value proposition. Too much information confuses. You either write a detailed exhaustive text or a text that people will actually read.
Don't make it too vague (like an inspiring slogan). A value proposition is not a list of abstract "values". We know that people make most purchasing decisions based on their deep-seated values, and you should account for that in your marketing strategy. Bearing that in mind, think about the tangible benefits of your product. The headline can be slogan-like, but the main text should be as solid and real as possible.
Don't start with the phrase "#1 in...". That doesn't convince customers in the 21st century. Instead of saying you're the best, focus on WHY you're the best.
Don't rely too heavily on video. Suppose you've made a great video that explains your product in less than 30 seconds. You might consider putting this video on the landing page, skipping all the extra text. The problem is that most page visitors won't be motivated enough to click the play button on a video they know nothing about. Thus, you automatically lose a huge portion of potential customers because they won't even watch the video. So don't skip the text. It will only help get more views of your great video.

Examples of Great Product Value Propositions

Finding an example of a value proposition is not difficult. In most cases, it's the first thing you see on the product's homepage. Here we'll analyze a few such examples to figure out what exactly makes them work.

Netflix

Like Uber, Netflix is close to becoming a generic term for online movie streaming services. Unlike Uber, Netflix still uses down-to-earth benefit statements to attract customers.

Key elements of the value proposition - unlimited access, support for various devices, download capability. And of course, a wide selection of movies and TV series. On the landing page, they don't even mention it, just put all those posters in the background. If there were an Oscar for the clearest value proposition, Netflix would get it first.

Airbnb

Airbnb started by directly connecting travelers with vacation rentals. Now it has evolved into a marketplace of experiences, both online and offline. This could be a getaway, a volcano excursion, a live concert, or a cooking class.

What does Airbnb say now that it offers so many different services? "Find everything you need to make your next trip unforgettable or start earning money as a host." They manage to address both parts of their target audience: guests and hosts.

Foodpanda

We deliver food and groceries in the shortest time. Our mission is to deliver everything you want, need, or crave right to your door, whether it's dishes from your favorite local restaurant or same-day delivery of groceries and cleaning supplies.

The main advantage of any delivery service is speed. "Foodpanda promises to deliver food and groceries in a flash." What else makes up its value proposition? 24/7 delivery, personalization, a wide selection including all sorts of goods, not just food.

Uber

It's been a while since Uber became a generic term for taxi services. Now Uber doesn't need to convince its customers that pressing a button is the easiest way to get a ride. The products Uber offers have multiplied several times. Now they work with food delivery, freight, public transport, and scooter rental. The diversity of products hasn't changed the core idea of Uber's value proposition: it's the smartest way to get around.