A value proposition is a short statement that explains why customers should purchase a specific product or service. It directly informs people about what they will receive in exchange for their time or money. Most value propositions answer questions that include (but are not limited to):
- Pain points that the product will solve
- Measurable net positive gains (technology, resources, etc.)
- Why the product is better than others on the market
Not to be confused with the unique selling proposition, value propositions explain why a brand deserves a customer’s business. They focus on benefits to the customer rather than differentiation from a competitor or group of similar companies. As a promise statement, the value proposition must define measurable outcomes, assets, and deliverables attached to an offered product.
Value propositions are extremely short and less than a paragraph in size. Three elements are included: a hook, a sub-line, and a call to action. The hook will sum up products and services in an interesting way. The sub-line will further elaborate on how the purchase will satisfy customers' needs. Finally, the call to action will encourage customers to move forward with a purchase, demo, or trial.