How to Write a Value Proposition Statement

Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

A value proposition statement describes a business' products and services and how they benefit consumers. In this lesson, you'll learn more about the components of this statement and how to assemble one.

What to Say

How do you succinctly tell clients what you're all about so they choose you over your competitors? Digit figured it out. A personal finance company swimming in a sea of other financial service providers, Digit analyzes your income and spending. Then, it begins transferring what the company believes you can afford to a separate savings account where it's accessible to you at any time. The premise is that Digit moves your money around in a way that you'll scarcely notice so you can start accumulating a rainy day fund.

To convey what they're all about, Digit's founders came up with a quick thought that would explain what they do and the benefit to its consumers in a quick, easy-to-read sentence: ''Save Money Without Thinking About It.'' In this short snippet, Digit conveys its concept of automated savings done for you. Central to this idea was the development of Digit's value proposition statement.

What's a Value Proposition Statement?

A value proposition statement, as you can see above from the Digit example, is a succinct statement that companies use to explain what they do and how it benefits consumers. It helps customers understand why a particular product or service would be valuable to them; it makes businesses stand out from its competitors.

A value proposition statement is not a slogan or a motto, like McDonald's ''I'm lovin' it!'' or Nike's ''Just Do It.'' A value proposition statement should tell consumers why your business is the best choice to solve a problem for them or provide them benefits. Instead of saying something like, ''We provide transportation from here to there,'' for example, Lyft opted for the more streamlined, ''Rides in Minutes.'' Why? Because it conveys exactly what they do (offer rides) and the value to the consumer (it'll only take minutes).

So, you want to write your own value proposition statement? Read on.

Preparing a Value Proposition Statement

Preparing a value proposition statement doesn't need to be an intimidating exercise. It requires some critical background information and a template, of sorts, to consider when compiling it.

First, the background information.

1. You need to know your customers. If you don't know what ails your customers, how can your product or service fix it? Think about who you customers are, including their needs, pain points, or problems. What type of solution would help remedy these issues and add value to their lives?

2. Think about your products or services. How does what you offer solve the customer's problem or make their life better? What about the most important benefits of your service or product?

3. Understand what your competitors are doing. How does your product surpass the other options available to consumers? What features or benefits make your product different or better?

Writing the Value Proposition Statement

Now, you're ready to think about writing. Most templates for writing a value proposition statement rely on four key elements:

A Headline

This is the eye-catching statement that explains your product or service's benefit in an eye-popping way that will draw in consumers. It should be fairly short and concise.

Dollar Shave Club uses the headline, ''A Great Shave For a Few Bucks a Month,'' which explains how the costly process of buying razors and shaving supplies can be much less expensive.

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