How to Create a Great Value Proposition

How to create a great value proposition

For those of us who didn't get a business degree the in's and out's of owning a business can be challenging. We know our trade but, the business side of things can be daunting. Like when someone asks you, "What's your value proposition?". If your response is, "What do you mean?" don't be embarrassed. The truth is that most companies don't have a clear value proposition.

What is a Value Proposition?

The Importance of a Value Proposition

To understand the importance of your value proposition let's first define it. Your value proposition should summarize why a consumer should buy your product or use your service. Think of value in terms of what value do you provide your clients. You have five seconds, let me repeat that again, you have five seconds to catch a customers attention online. The average person decides if they want to continue reading after five seconds. So having a great value proposition is key to your business. Simply put your statement should consist of the following three components.


3 Components of a Great Value Proposition

  1. Explains how your product solves your customers needs/problems
  2. Explains the benefits of using your service
  3. Explains why your customer should buy from you instead of your competitors

How to Build Your Statement

Now that you know the components necessary for your statement how do you build it? I'll show you ...

  • Step #1: Create a headline. In one sentence write what you offer your customers.
  • Step #2: Either list your services or benefits or write 2-3 sentences explaining your services.
  • Step #3: Create a visual. Images speak louder than words so creating an eye-catching visual will catch the customers attention. The visual can be your product or it can highlight your services.


Great Value Proposition Examples

If you're like me you need a visual example to help guide you. I've scoured the internet (yes, I really did) to find you great examples. Here are a few examples, including my own value proposition, to help you craft your own.

Red Lantern Creative

RLC Value Proposition Example
  • Clear headline"Red Lantern Creative is a graphic design studio specializing in digital design, branding, and event invitations."
  • Listed services - "web & social graphics, logos & collateral, invitations".
  • Visuals -  I incorporating the visuals with my services.
  • When a customer visits my page they will know what I can do for them and how to find more info in five seconds or less.
  • My value proposition has all 3 components laid out above by showing I'm a one stop shop for my clients graphic design needs. This benefits them and it's why they should work with me.

ReTargeter Value Proposition Example
  • Clear headline - "Targeted Digital Advertising Solutions"
  • Sentence explaining services - clear and concise sentence explaining their services
  • Visuals - target visual, clear branding
  • Customer can understand the business offerings in five seconds or less.
  • ReTargeter's value proposition has all 3 components laid out above by showing what they do, how they can help their customers and that they are the best in the industry.

Wufoo Value Proposition Example
  • Clear headline - "Create and share your forms."
  • Sentences explaining services - 2 sentences that highlight their services and how they can help their customers
  • Visuals -  Placed below the services - "create, share, get data"
  • Customer can understand the business offerings in five seconds or less.
  • Wufoo's value proposition has all 3 components laid out above by showing what they do and how they help make it easy for the client

Create Your Own Value Proposition

So there you have it. Hopefully you have a better understanding of value propositions and the importance of creating a great one for your business. Don't skip over this important step when branding your business.

Please come back and share your value propositions with me. I'd love to see your examples. Do you have anything to add?