Value Proposition: What is it and How Do You Create One?

Successful companies have clarity when it comes to the problem that their product or service is solving. They also seek to be unique when compared to the competition. The precise detailing of the product or services is often referred to as the value proposition. Companies whose value proposition is clear tend to achieve better sales, growth and customer loyalty.


So, what is needed in a clear value proposition for your customers?

Answers the right questions

What problem are you solving? What makes your product or service unique? How do you differentiate? If you’ve already created a service or product without first developing a value proposition, you’ll need to work backwards.

If your value proposition isn’t right, don’t feel you need to stick with it – change it for the better.


In any time but particularly NOW, it is essential that your value proposition aligns with the purpose of the company. Join the dots between what you purport to be and how this aligns to your service. Otherwise, you are just another tree planter….


Too many times, companies are afraid of excluding potential customers and develop a value proposition to suit anyone and everyone. This can create an unclear, watered-down version that’s usually buried in buzzwords.

It’s best to clearly identify who your target market is and how you are helping them. To achieve this, build out a detailed persona and create your value proposition to suit them.


When you first build your value proposition, it may be overly complex. This version could be useful for your employees or maybe even a dedicated page on your website. But you’ll want a shorter version that is easily understood and remembered – a small phrase is enough!

Take Mailchimp as an example. You can see below that they are solving problems that come with small businesses with big marketing ideas. They didn’t need to use many words to get the point across.

mailchimp value proposition


Arguably the most important aspect of a clear value proposition is that it holds true. It’s extremely disappointing as a customer when you’re told one thing and delivered another. If your product isn’t the highest quality out there, don’t claim so. However, if it delivers in quality and affordability in a way that others don’t, you have your value proposition.

Creating a value proposition that meets these criteria will provide you with satisfied and loyal customers. It will align your business and customers, ensuring everyone knows what makes you unique.

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