One of the most compelling ways to communicate the benefits of your brand is to create a value proposition. A clear and concise value proposition will explain how you help your customers and why your brand is the better choice.
What is a Value Proposition?
Your brand value proposition is a clear statement about the outcomes your customer can realize from using your product, service, or solution. In simpler terms, it is a statement about the value you are proposing.
Think of your value proposition as a promise of outcomes or results that your customers will experience. “If you use our product or service we promise that you will…” “…save time, save money, feel better, get stronger, look better, be less stressed, be more productive, etc.”
Keep in mind—your value proposition is not your slogan or tagline (we’ll be working on that tomorrow!), it’s a few short statements about the benefits your customers get.
USP vs VP
I often hear the terms “value proposition” and “unique selling proposition” used interchangeably. I want to make a clear distinction between these two statements. I explained in a previous post that your unique selling proposition (USP) is a statement of your uniqueness. It’s all about how you are different from your competition. On the other hand, your value proposition (VP) focuses on the benefits the customer gets. It’s all about the results of doing business with you.
USP=Uniqueness, differentiator
VP=Benefits, results
What Makes a Good Value Proposition?
A well-defined value proposition should meet the following criteria:
* It is very clear and easy to understand.
* It shows how your product or service solves a specific problem or improves a situation.
* It communicates very specific results your customers can expect.
* It explains why you are the better choice.
* It can be read and understood very quickly and easily.
Building Blocks for Your Value Proposition
Like most things, there’s no right or wrong way to create your brand value proposition, but I’ve come up with some guidelines to help you get organized and get your thoughts down on paper.
Here are the building blocks you can use to create your value proposition:
* Your ideal client
* Your product or service
* The benefits you offer (it does this)
* The outcome your customer gets (so you get that)
* Ways you are different and unique
To help you make sense of this process and see how it all comes together, I’m going to create a semi-fictitious value proposition using Starbucks as an example.
Your Ideal Client
Start with a brief description of your ideal client. List a few of their needs, desires, problems, or issues that your brand helps solve for them.
Starbucks example:
The ideal Starbucks customer wants a consistent, high-quality experience everywhere they go. They want a comfortable place to hang out alone or with friends. They have specific tastes and needs and want to feel like they matter.
Your product or service
Next, explain in a short sentence or two exactly what you do. Don’t make this too complicated or try to say too much, just say what you do.
Starbucks example:
Ubiquitous, upscale coffee shops serving consistently great coffee in a comfortable atmosphere.
The benefits you offer (it does this)
Make a list of the benefits your brand offers. What’s good about your brand? What does your brand “do”?
Starbucks example:
We are everywhere.