How to write an effective Value Proposition

Everyone talks about how critical the Value Proposition is in the digital business world, but only a few can clearly define it to stand out from the competition.

Imagine the moment when, driven by frustration with the current solutions available in the market, you finally had an epiphany: a new product idea that could revolutionize the industry.

At first your enthusiasm is through the roof, but you soon realize that translating this brilliant insight into a compelling customer proposition is more difficult than expected. Meetings become intense brainstorming sessions in which you cannot agree on a clear and unambiguous Value Proposition.

If this all sounds familiar, you are in the right place. We at Moze have been fortunate to accompany many clients in focusing their Value Proposition by harnessing the power of design-based facilitation methodologies. In this article, we will share the key steps we have learned in more than 12 years of experience in digital product development. By following these tips, you can create a powerful and persuasive Value Proposition that is essential to the success of any digital initiative.

• What is a Value Proposition?
• Value Proposition vs Mission
• How to write a Value Proposition
• 5 Value Proposition Examples
• Getting Started: the Value Proposition Workshop
• References and Tools

What is a Value Proposition?

What is a Value Proposition?A Value Proposition is a summary of the unique and relevant benefits that a product or service offers its customers. It answers crucial questions such as “Why this product?” and “What problem does it solve?” The most effective way to develop a Value Proposition is to write a “Value Proposition Statement,” which is a slogan that summarizes the unique benefits of the offering in one sentence, and submit it to potential users to gather feedback and refine it. This iterative process ensures that the value proposition meets the needs of the target audience, satisfying their real needs.

To facilitate the development of the statement, it can be helpful to use a template; here is an example:

Template
For [target customers] who [need/problem], [product/service] is a [category] that [main benefit/solution]. Unlike [main competitors], [product/service] [unique differentiation] due to [evidence/evidence].

Example: a calendar for busy parents
For busy parents who find it difficult to organize their children’s daily activities, the “Family Organizer” calendar app is an intuitive and centralized solution that simplifies the management of family commitments. Unlike other generic calendar apps, “Family Organizer” offers specific features for managing children’s activities, designed with input from hundreds of users.

Value Proposition vs Mission

People often confuse the Value Proposition with the corporate Mission Statement, but these are two distinct concepts. The Mission Statement defines the company’s purpose and core values, answering “Why do we exist?” In contrast, the Value Proposition focuses on “What do we offer and why is it important to customers?” While the Mission guides the long-term strategic direction of the company, the Value Proposition is a specific promise to customers about the value they will receive.

Take, for example, a fitness app aimed at beginners:

Mission Statement (concerns the company)
“Our mission is to make fitness accessible to everyone by making intuitive solutions to guide beginners in achieving their physical wellness goals. We are committed to promoting an active and healthy lifestyle, offering tools and support to help each user improve their health and well-being through regular physical activity.”

Value Proposition Statement (concerns the product)
“For beginners who want to start an accessible and motivating fitness journey, the “EasyFit” app is a comprehensive guide that offers personalized and progressive workouts. Unlike other fitness apps for experienced users, “EasyFit” stands out for its ease of use and a step-by-step approach that guarantees tangible results within the first few weeks.”

How to write a Value Proposition

Writing an effective Value Proposition requires a structured and methodical process. Here are five key steps, with sample templates from well-known methodologies:

1. Identify your target audience

Who are your ideal customers? What are their main needs and problems? For example, for task management software, the target audience might be professionals who want to be productive during the workday. For new products, it is often useful to define a specific niche so that you have a better chance of attracting an audience that is not fully satisfied with generalist tools. Returning to the previous target audience example, we might decide to target the niche of freelance consultants in the technology sector, who manage multiple projects at once.

2. Describe the problem

What specific problem or need does your product or service address? Continuing with the previous example, the problem could be the difficulty in maintaining concentration and effectively organizing daily tasks. Often, these professionals fail to meet deadlines due to excessive cognitive load and lack of an advanced task management method.

3. Propose the solution

Clearly explain how your product or service solves the identified problem. In our example, the software could offer time tracking, task scheduling, and notification features to avoid distractions. In addition, a native feature of the app could help the user follow a specific task management methodology (e.g., “Getting Things Done,” SMART Goals, etc.) by providing tools to systematically annotate, organize, and execute tasks.

4. Highlight the unique benefits

What specific and unique benefits does your product offer over the competition? It may be useful to compare your benefits with those of your main competitors. For example, your software might incorporate an artificial intelligence feature that automatically suggests priorities based on user behavior.

5. Use a template for brainstorming

Once the first steps have been addressed, use a template to write the statement:

Value Proposition Canvas
Alexander Osterwalder’s Value Proposition Canvas is a visual tool to help map the value offered to customers. Use this template to clearly highlight the target audience, the problem it solves, and the unique benefits.

Template: “For [target audience], that [problem description], our [product/service] is [solution] that [unique benefits].”

Example: “For freelance consultants in the technology sector who have to manage many projects, our task management software is a tool designed to improve task organization through unique features such as time tracking, task scheduling, notifications to avoid distractions, and native integration of the ‘Getting Things Done’ methodology.”

Lean Startup
The Lean Startup formula, designed by Eric Ries, focuses on creating a minimum working product (MVP) and continuous improvement based on user feedback. This template helps you clearly outline the solution offered and the perceived value.

Template: “We offer [solution] for [target audience] seeking [goal] without [obstacle].”

Example: “We offer task management software for freelance consultants in the technology sector who seek to maximize productivity without being overwhelmed by daily distractions.””

6. Test your Value Proposition

Be careful: there is no point in creating a Value Proposition Statement if you don’t test it with potential users and gather feedback to improve it. Instead, it is essential to make sure that your value proposition really resonates with your target audience.

Here’s how to approach the test:

1. Qualitative feedback

• Recruitmen: Select a representative sample of your target audience, such as current or potential customers.
• Preparation: Plan targeted questions to understand their perceptions. Ask, for example, “What is your first impression?” and “How would you use our product/service?”
• Interviews: Conduct one-on-one, in-person or video call interviews. Observe the interviewee’s reactions well and ask yourself, “Is he/she puzzled or enthusiastic?” or “Does he/she spontaneously describe how he/she would use the product?”
• Report: Analyze the collected responses and identify common themes. Create a detailed report highlighting the strengths and areas for improvement in your Value Proposition.

2. A/B Testing

Use A/B Testing to show different versions of your marketing page to random segments of your web traffic by changing elements such as the headline and descriptions. Here’s how to do it:

• Experiment with different headlines and descriptions: Vary your page’s headlines and descriptions to see which one grabs your audience’s attention the most.
• Implement A/B testing: Use tools such as Google Optimize to expose variations of your page to random segments of your web traffic. This allows you to directly compare the performance of different versions.
• Analyze results to optimize performance: After performing A/B testing, analyze the data to identify which version performed better in terms of conversions or other set goals.

This process will help you continually improve your marketing page, better tailoring it to your audience’s preferences and maximizing the effectiveness of your campaigns.

3. Iteration and improvement

Finally, synthesize the collected feedback to identify recurring themes and specific suggestions. Make necessary changes and repeat tests to continuously improve your Value Proposition.

5 Value Proposition Examples

1. Google Photos

Headline: “Makes photos feel like magic”

• Google Photos provides a secure and easy-to-use space for storing photos and videos.
• The main function is to provide an organized archive for the precious moments in your life.
• It provides protection and accessibility, ensuring that memories are always available and well cared for.

2. Mailchimp

Headline: “Turn emails into revenue”

• Mailchimp turns email communications into revenue opportunities for businesses.
• The Value Proposition highlights helping companies monetize their email marketing campaigns.
• It promises improved return on investment and increased sales through effective marketing strategies and automated tools.

3. Uber

Headline: “Go anywhere with Uber”

• Uber bills itself as a flexible and convenient transportation service.
• It emphasizes ease and reliability in obtaining a ride.
• It offers a practical and affordable solution for immediate or planned needs, simplifying urban mobility for everyone.

4. Dropbox

Headline: “Everything you and your business need to work efficiently, all in one place”

• Dropbox provides an integrated platform for file management and collaboration.
• It centralizes corporate resources, simplifying organization and file sharing.
• Improves operational efficiency and collaboration among team members.

5. Evernote

Headline: “Tame your work, organize your life”

• Evernote is a tool for managing both work and personal life.
• It helps users keep professional activities and daily chores under control.
• It provides a system for taking notes, organizing ideas and managing projects, offering integration and personal organization.

Getting Started: the Value Proposition Workshop

Writing the Value Proposition can be a complex process that requires a thorough understanding of user and competitor needs. Working in a workshop can be the quickest and most effective way to align the team on a consistent statement to test. Here’s how it might be organized:

Morning: Exploration and Divergence

Problem definition:
At this initial stage, the team focuses on identifying and investigating user problems. This can be done through:

• Team experience: Use the team’s direct knowledge and experience to identify common problems and user needs.
• Qualitative data: Analyzes user feedback, reviews, interviews, and direct observations to gain an in-depth understanding of the challenges users face.
• Quantitative data: Examines analytical data, surveys, usage statistics, and other metrics to identify patterns and recurring problems.

Whiteboarding:
After defining the main problems, the team participates in a whiteboarding session. This technique involves using a whiteboard (or equivalent digital software) to visualize and discuss ideas collaboratively and visually. Whiteboarding stimulates creativity and allows the exploration of different perspectives, facilitating the organization and synthesis of information in real time.

Afternoon: Convergence and Realization

Synthesis of ideas:
It filters and selects the best ideas that emerged during whiteboarding. This process helps focus on the most promising and relevant solutions for users.

Co-design:
During this phase, the team works together to create the wireframe of the product or service marketing page. Here is a list of the elements that should be included:

• Headline: An impactful phrase that captures attention and immediately communicates the value proposition.
• Subtitle: A brief description that supports the headline and provides additional details about the value proposition.
• Problem Description: A clear explanation of the main problem that the product or service solves.
• Proposed solution: A description of how the product or service solves the problem, with details on the main functionality.
• Unique benefits: A list of the specific and distinctive advantages that the product or service offers over the competition.
• Testimonials and case studies: Real feedback from users and concrete examples of success to reinforce credibility and trust.
• Call to action (CTA): A clear and compelling call to action, which can be a button to sign up, purchase, or request more information.
• Visuals and graphics: Images, diagrams, and videos that illustrate the features and benefits of the product or service in a visual and engaging way.

Prototyping:
Develop a high-fidelity prototype of the marketing page based on the wireframe created during the co-design. This prototype should be detailed enough to allow you to test the effectiveness of the Value Proposition with real users.

Testing with users

Hold one-on-one interviews with potential users to gather feedback on the marketing page prototype. This will help identify any weaknesses and identify the best way forward. 

References and Tools

To delve deeper into creating an effective Value Proposition, here are some useful references and software tools that can facilitate the process:

Useful References

1. “Value Proposition Design” by Alexander Osterwalder.
This book offers a comprehensive guide on how to design, test and implement an effective Value Proposition. It uses the Value Proposition Canvas, a visual tool that helps you better understand your users’ needs and how to meet them.

2. “The Lean Startup” by Eric Ries.
An essential book for anyone who wants to develop innovative products and services. Ries explains how to create an MVP (Minimum Viable Product) and continuously improve it based on user feedback, an essential approach to defining and refining your Value Proposition.

3. “Sprint” by Jake Knapp.
This book describes a five-day process for solving critical problems and testing new ideas. The Design Sprint methodology can be applied to develop and refine a Value Proposition, engaging the entire team in a week of intense, collaborative work.

Software Tools

1. Miro
An online collaboration tool that allows teams to create mind maps, flowcharts and canvases, including the Value Proposition Canvas and Business Model Canvas. Miro facilitates brainstorming and visualization of ideas during the workshop.

2. Typeform
A platform for creating surveys and collecting qualitative and quantitative feedback from users. Typeform is useful for testing different versions of the Value Proposition and getting valuable information directly from your target audience.

3. Whimsical
A versatile design tool for wireframing, flowcharts, mind maps and more. Whimsical helps teams visualize and organize their ideas clearly and intuitively, supporting the co-design process during the workshop.

4. Figma
A powerful collaborative design platform that allows you to create high-fidelity prototypes and work with your team in real time. Figma is ideal for developing the wireframe and prototype of the marketing page, facilitating collaboration between designers and stakeholders.