Value Proposition

Definition: 

In short, the value proposition is a promise from the company to the customers and the market. Usually, the value proposition is presented in the form of a commercial or marketing statement, and the intention of presenting this statement is to convince customers to buy a product or service of a particular company against the products of competing companies; This persuasion is done through a value proposition, about what the company’s product or service is different from the competitors’ products and what problem it solves for the customer. The value proposition should be visibly displayed on websites and other touch points so that the customer can see and hear the value proposition of a brand and understand it without further explanation.

Components of a value proposition:

 The 3 main elements of a value proposition include a headline, sub-headline, and visual element.

Headline: A successful value proposition usually has a clear headline that conveys the benefit to the customer. The headline can be creative and attractive, but it is more important to be clear and concise.

Sub-headline: Below the headline, a sub-headline is displayed in the form of a short paragraph or two to three sentences to explain more about what the brand is offering, why, and to whom it offers the product.

Visual element: In some cases, a video, infographic, or image will have a greater impact on conveying the value proposition of the brand and attracting the customer’s attention. This structure gives consumers the opportunity to quickly scan the value proposition and get the product features.

Importance:

A complete and persuasive value proposition enhances the effectiveness of brand marketing strategies; On the other hand, if a brand cannot convey its value proposition to target customers, it will lose capital and profitability and may eventually fail.

Types of value propositions: 

There are 4 main types of value propositions:

Customer value proposition: The most common definition given for the value proposition is related to the customer’s value proposition. This value is a statement of the benefits that the customer receives after purchasing the product or service.

Unique value proposition: Unique value proposition, also known as Unique Selling Point, focuses on the unique and special advantage that only one product offers to consumers.

Employee value proposition: It is the value shared by the company for its current employees and potential employees. This value focuses on what the company offers to the employees in exchange for their services and skills.

Personal value proposition: The personal value proposition is included in the resume as an applicant statement. This statement refers to the value of the individual’s skills and the benefits of employing the individual in the company.

Menu