How to Create an Effective Value Proposition

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A big part of starting a company is figuring out what sets you apart from your competitors. In order to be competitive, you need to have an edge over other businesses in your industry. One of the best ways to put your unique side on display is to create a value proposition.

A value proposition describes what sets you apart from competitors, how your product solves a problem, and the benefits that your product offers. It also explains why customers should choose you over a competing business.

Here’s what you need to know about creating an effective value proposition that increases leads, conversions, and ultimately sales. Before you get started, be sure to check out these good brand value proposition examples.

Why You Need a Value Proposition

So, you’ve already solidified your brand and written a slogan, why do you need a value proposition? What many businesses fail to realize is that a value proposition isn’t a slogan or just another piece of marketing material.

It’s the statement that depicts the value of your product. It informs customers why your product is the best option on the market and why your business is worth doing business with. A well-written value proposition can work wonders for generating an ever-growing number of customers.

Without a value proposition, it’s going to be much harder to rise above the competition.

Identify Your Target Market

In order to create a useful value proposition, you’ll need to first identify your target audience. Who is most likely to be interested in buying your product? What do they like and dislike? What challenges do they face?

One of the biggest mistakes that businesses make is assuming that everyone is a customer. While it’s nice to think that everyone could benefit from your product, appealing to everyone never works out well. Your product and its value will get lost in the noise and frustration of trying to appease all of the different customer wants and needs.

Instead of wasting time and effort trying to appeal to every customer, conduct market research to identify who your target market is. Look at your existing customers and other groups that may be good potential buyers.

By honing in on exactly who your audience is, you can better understand their pain points and offer a product that solves them.

It’s also important to understand who makes up your target audience, to include demographic information such as location, family makeup, average age, income, and other details.

Explain How Your Business is Different (And Why It’s Preferred)

Another pertinent detail to include in your value proposition is why customers should buy from your business instead of a competitor. What makes your business different, and why should you be their go-to for a specific product?

Before you can separate yourself from competitors, you have to first understand who they are, what they offer, and what they value. Just as you’ve researched your target audience, you’ll also want to get the details on your competition.

Be sure to:

  • Read their mission and vision statement
  • Examine their value proposition
  • Learn about their target market
  • Look at their marketing campaigns

When you know how your competitors operate, you don’t have to assume anything. This means that you can clearly articulate why your business is the better option for consumers.

Identify Product Benefits & Explain Why Those Benefits are Valuable

When buying products, consumers mostly care about how the item benefits them. People don’t want to spend their hard-earned money on a product that doesn’t make their life easier or on something that doesn’t solve a problem.

A product that alleviates a pain point or solves a problem is one that makes a difference, and people care about that! Write down what problems your product solves. Is your product more affordable, and therefore saves money? Does it save time or effort? Does it solve an everyday problem?

Figure out why your customers can’t live without your product and express that when writing your value proposition.

When coming up with product benefits and why your product is so valuable, look back at the research you conducted on your competitors. Figure out what features and values you offer that your competition doesn’t. This way you can show how your product meets customer needs in a way that other products can’t.


Creating an effective value proposition takes a lot of time, research, and effort. But, when done right, the results will help you to meet, if not surpass, some of your most important business goals. Follow these steps to create a value proposition that highlights the benefits of your product.