How To Write A Value Proposition Statement Template + Example
Introduction – The Not-So-Simple Value Proposition Statement
What if I told you that a single sentence could make or break your business? I know, that seems a little dramatic. But in the world of branding and marketing, the value proposition statement carries some serious weight.
This deceptively simple statement has the power to set your brand apart from competitors and compel potential customers to choose you. Yet most businesses either have a weak value proposition or *gasp* none at all!
In this post, we’ll break down what makes an effective value proposition tick. You’ll learn why it’s so critical for branding success and get step-by-step guidance on crafting a compelling statement.
Fair warning: I’ll be serving up some dry British wit alongside the practical advice. And remember, if writing an amazing value proposition were easy, every brand on the planet would be doing it.
So prepare your best stiff upper lip, pop the kettle on, and let’s dive in!
Understanding the Value Proposition
A value proposition is a clear statement that reflects the essence of what your brand offers to its target audience. It goes beyond just highlighting your strengths and gets to the heart of why your brand is the better choice for customers.
The purpose of crafting this statement is twofold:
- It compels potential customers to choose you over competitors by clearly outlining the unique value you provide
- It acts as an internal guiding light for your brand strategy and messaging
Many brands fall short when articulating their value proposition. Common pitfalls include:
- Being too generic – Using vague claims that could apply to any business makes it impossible for customers to differentiate you
- Failing to highlight unique strengths – You must get specific on the key ways your brand delivers value better than alternatives
- Forgetting the audience’s perspective – The value proposition should focus on what the customer gains, not what you’re selling
To avoid these traps, let’s break down the essential elements that make up an effective value proposition:
Clarity – The language should be crisp and clearly communicate your differentiation
Relevance – It must resonate with the target audience by addressing their needs/wants
Credibility – Back up your claims of superior value with real evidence
Distinction – Highlight how you deliver value in a way competitors can’t match
If you can nail those four factors, you’ll have a value proposition that compels customers and sets your brand’s strategy off on the right foot.
But even well-crafted statements need regular revisiting as markets and audiences evolve. Be prepared to rework your proposition over time while keeping its core focus on unique value.
Crafting a Compelling Value Proposition
Defining your target audience is the critical first step in crafting an effective value proposition. You need to intimately understand who you’re speaking to before determining the unique value you provide.
Being overly broad like addressing “small businesses” diminishes your ability to connect. Get more specific – what particular segment of the market are you serving? The more tailored to their reality, the better.
For example, “health and wellness businesses” begins narrowing the focus, but even that remains vague. Drill down further – are you targeting new startups in the nutrition space? Yoga studio owners? Corporate wellness program managers? Gym franchises?
The importance of specifics:
- Allows crafting messages that genuinely resonate with customers’ reality
- Uncovers the precise pains/gains your brand can address
- Differentiates from competitors also targeting “small business”
Once you’ve clearly defined the audience, articulate what outcome your brand enables them to achieve. And make it emotionally compelling!
For instance, rather than “social media services,” say you help clients “build passionate communities that spread their purpose.
Finally, define the unique way you deliver that outcome. How do you stand apart from alternatives? Highlight your special sauce!
Maybe you guide clients through a proprietary 4-step community growth framework. Or take an innovative tech-driven approach no competitor offers.
- Laser focus on who you serve
- Define the aspirational outcome you enable
- Spotlight your special sauce
Do this, and you’ve got a value proposition that truly resonates and converts!
A Value Proposition Template That Works
We just covered the critical steps of defining your audience, the aspirational outcome, and your special sauce. Now let’s put it all together into an actionable value proposition template.
Here’s the simple formula:
We help [target audience] to [achieve aspirational outcome] through [special sauce].
We help yoga studio owners build purpose-driven communities through our mindfulness-based engagement training.
Breaking this template down piece by piece:
- We help – Leading with helping positions you as an enabler of their success
- Yoga studio owners – Ultra-specific audience that will relate
- Build purpose-driven communities – Aspirational, emotionally-resonant outcome
- Through our mindfulness-based engagement training – Unique methodology that no competitor offers
While this template may sound like an espionage cipher at first, it provides a clear structure.
The key is choosing each element carefully based on truly understanding your clients. This isn’t a game of Mad Libs – every word matters for connecting with your audience.
Pro Tip: Don’t just set this value proposition and forget it. Continually test it with clients to ensure it still rings true as your business evolves.
Now you’ve got the blueprint for crafting a value proposition that sells. So put on your spy hat, and get to work!
Distinguishing Your Value Proposition from Other Key Brand Elements
Brand builders often confuse value propositions with other critical brand components like taglines and mission statements. But while related, these serve different purposes.
Taglines Are Catchy, Value Propositions Are Compelling
A tagline is a short, catchy phrase that captures the essence of a brand. Taglines aim to be memorable, not explanatory. The wordplay conjures up imagery and emotions associated with the brand in customers’ minds.
- Just Do It (Nike)
- Think Different (Apple)
- Because You’re Worth It (L’Oreal)
In contrast, a value proposition seeks not just to be clever, but to compellingly state the tangible value offered.
Mission Statements Are Lofty, Value Propositions Are Functional
A mission statement encapsulates a company’s ambitious vision for changing the world. Mission statements use aspirational language about shaping industries, making lives better, or innovating the future.
To accelerate the world’s transition to sustainable energy. (Tesla)
While admirable, these broad visions often lack specifics about the day-to-day value delivered to customers.
A strong value proposition fills this gap by clearly stating how the brand improves customers’ lives right now.
Remember: Value Propositions Sell, Taglines Sing, Missions Soar
- Value propositions compel customers by speaking directly to their needs
- Taglines snag attention with witty and evocative language
- Mission statements rally employees under a shared vision of the future
So as you craft your brand identity, define each element distinctly. Otherwise, you risk confusing customers or failing to convey concrete value.
Crafting a Compelling Value Proposition
Articulating a strong value proposition is challenging yet critical work for any brand builder. As we’ve explored, an effective value proposition compellingly conveys your unique value to potential customers. This core brand statement can be the difference between winning loyal fans or being overlooked.
So how do you craft a value proposition that truly resonates? Here are three key steps:
Define your target audience specifically. Don’t hide behind vague descriptors like “small businesses.” Get creative and laser-focused. Health and wellness businesses? Nonprofits focused on education access? Be bold in speaking directly to customer needs.
Articulate the concrete outcome you provide. Don’t just tout services, spell out the real-world impact you create for customers. Do you build “lovable brands” that foster emotional connections? Do you offer “frictionless checkout experiences” that reduce cart abandonment? Be tangible.
Share your special sauce. How do you uniquely deliver that outcome? Is it through “humanized messaging and engaging personalities?” A “white-glove onboarding experience?” Share your differentiating factors.
While simple in concept, nailing these three steps takes work. But the payoff of an authentic, compelling value proposition is immense.
So don’t settle for generic claims that could apply to any business. And definitely don’t resort to “we sell stuff.” Craft your value proposition carefully. Because when done right, this one statement can become the very heart of your brand.
Greetings! I’m Jack, founder of Scythos – where I’ve helped over 50 brands transform into unforgettable identities and stunning digital presences. As a brand strategist and creative consultant, I have over a decade of experience taking brands from wallflowers to the centre of attention.
Looking to get your branding noticed and your business thriving? Reach out anytime to brainstorm creative strategies for making your brand impossible to ignore. I love collaborating with passionate entrepreneurs to conceptualize innovative ways to connect with their audiences.
Whether you need help with a logo, website, content or entire rebrand – let’s chat! I’m always eager to share my ideas, creative concepts and expertise to help brands reach the next level. Together, we can make sure your business gets seen and heard. Follow along on social or send me a message to get the conversation started!