The ‘Not-So-Complicated’ Guide to Value Propositions

Don't tell anyone, but...value propositions confuse me.

I know it's a simple enough concept to understand. And sometimes I do get what a value proposition is. Or at least, I think I do.

But just when I think I've gotten a grasp of it, someone uses it in an unfamiliar way and I'm back to being confused.

The whole experience takes me back to those childhood days when you're hanging out with your friends and someone mentions a new popular cartoon or band that you haven't heard of before because your parents are strict.

When you innocently ask "Who is that?" all movement ceases and the conversation stops. Almost in unison, everyone turns to gape at you in astonishment. 

As you quickly realize you are the last person on earth to hear about this fad, that one "friend" you never really liked rolls their eyes and says in their snootiest voice

"Oh, my god...you don't know {insert whoever or whatever} is?"

Back then I didn't have the courage to shoot back a reply like "No, Bethany I don't. If I did, I wouldn't be asking" in an equally obnoxious voice, while also rolling my eyes, and tossing my braids over my shoulders for added measure.

Truth be told, I still don't have the kind of balls that would let me do that. Especially when the topic is value propositions and the setting is a meeting where colleagues, supervisors, and industry leaders are gathered, and Bethany is actually my boss.

But I do have the wide-open world of the internet to dive into.

It's time to figure this out once and for all. 

No longer am I going to shrink back when the topic is being discussed, hoping and praying no one asks me a direct question about it.

No longer will I nod along with everyone else, too embarrassed to ask clarifying questions, inadvertently exposing my ignorance.

The last time value propositions had me stumped was the very last time.

I am going to engage confidently in discussions about value propositions, add my two cents, and avoid those awkward moments of confusion.

If you're also tired of value propositions throwing you for a loop and want to be able to nod along confidently like everyone else when the subject is brought up, or if you’re eager to navigate these discussions with finesse, showcasing your expertise, then keep reading to learn what the fuss is all about.

Value Propositions Uncovered: The Simple Story

For a statement that's supposed to be clear and concise, there's a lot of ambiguity around what a value proposition is and is not. It quickly became evident why the topic was so hard to understand when I started my research. 

First, it has so many synonyms. Value propositions are referred to by many different names, such as unique value proposition, proposition of value, Brand proposition, customer value proposition, value statement, and so on. But they all essentially mean the same thing.   

Why there should be so many different names for one simple concept is beyond me. But I guess that's part of the peculiarities of the English language.

Secondly, various marketing concepts differ just slightly in definition. Without a good understanding of each, you're bound to confuse them.

As a result, there's a lot of inconsistency on what qualifies as a value proposition. I've scratched my head, squinted my eyes, and tilted my head in bewilderment many times trying to make sense of it all. 

So, if you've struggled with understanding what a value proposition is, don't feel bad. I was there right there along with you.

Value Propositions Unveiled: What They Are

If a feature refers to what a product/service has or how it works and a benefit is the outcome or result you get from using said product/service, then what is a value proposition?

Simply put, a value proposition is a clear and concise statement that explains the unique value a product or service offers to customers. One they can’t get anywhere else.

Let's use Stratia, a skincare line that has been on my radar for some months now, as an example.  

Value Proposition: Effective skincare, backed by science

When you land on their homepage, you immediately and easily know Stratia is very passionate about their science-backed formulas.

If you're someone who has battled skin problems for years, spent tons of money on products that didn't work, and is frustrated at how challenging it is for you to get clear skin, landing on this page gives you hope.

These products have been tested, thoroughly. Science was used in the production process. It can't be wrong, right?

Let's take a look at another product in a completely different industry - BambooHR.

Having worked in HR for more than a decade, I can testify to the fact that if you don't have a robust HRM software to manage human capital, work will easily become overwhelming and you'll begin to question your life choices.

When you get to the BambooHR's homepage their value proposition is clear - HR, Payroll, Benefits. The Complete Software.

You don't have to go anywhere else, their software has you covered. 

And not only that, in their sub-head they mention their software has won awards from hire to retire.  Great! Further proof that they know their stuff.

Demystifying Value Propositions: What They Aren’t

Now that you have a good idea of what a value proposition is, let's get clear on what it is not.

Unique Selling Proposition

While a value proposition and a unique selling proposition are often used interchangeably, due to their similar meanings, they perform different functions. 

A unique selling proposition highlights what sets a product/service apart from the competition. But it's more of an "internal-facing" strategy.

While a value proposition focuses on the unique value customers get from a product/service that they can’t get anywhere else. This should feature prominently on the company’s website, landing pages, emails, and marketing material.

For example, everyone has their favorite pizza place. 

Each pizza joint has its own unique recipe. They might have a secret sauce or a special way of making the pizza that no one knows about or does. This is an internal strategy or their unique selling point.

If we're going to be honest with ourselves, except for slight variations in taste and texture, most pizzas taste the same. 

But there's that one place that you always go to for pizza. It's miles out of your way. When you go there, they greet you by name, ask after your family, and make you feel welcome. Every so often they even give you extra breadsticks.

Their exceptional customer service is their value proposition because you don't get that kind of treatment anywhere else. So you keep coming back.

When you go to their website there will be an emphasis on customer service on their homepage.

Tagline

A tagline communicates a key aspect of a brand in a punchy sentence to stand out from the competition.

There's nothing cute or clever about a value proposition. It's a clear and concise statement that communicates the value customers get that they can't get with another product or service. 

Customers shouldn't have to think or wonder about what they're going to get from a product or service. That's too much work. When it comes to a value proposition, clarity trumps being clever. 

They should be able to tell with little to no work if they're on the right website if the solution is for them, and if the solution can help them in a way no other can.

Slogan or Catchphrase

A slogan or catchphrase communicates a key message a brand wants its consumers to associate with their product or service. 

It's not focused on the wants or needs of the customers. Rather, the message is crafted based on what the brand wants its customers to know or associate with them.

On the other hand with value propositions, customers determine the message (or at least they should if the value proposition is done right). 

Just like how Hitachi ®Magic Wand was originally marketed as a massaging wand but gained fame for something entirely different…

Interestingly, it appears that they’ve started embracing their unique reputation.

Good for them.

Why Value Propositions Matter (More Than You’d Think)

In the business world there are those who understand the importance of nailing their value proposition and therefore reap the benefits. There are those who don't give it a second thought. They assume they know what their customers want/need.

Guess which out of the two is the most successful?

The right value proposition helps you target your ideal customer. It lets them know that your product/service is the solution to their pain. As a result, you stand a better chance of getting and converting higher-quality leads.

The right value proposition helps you work smarter, not harder.

Also, as you're researching your ideal customer to figure out what value proposition will best attract them, you're learning more about their pain points, goals, and desires. This knowledge can help you develop better and more focused marketing strategies.

Value propositions are also useful when you're looking to attract high-performance staff. These days, people are less inclined to work solely for the joy of receiving a fat salary to the detriment of their work/life balance or mental health.

Too many toxic workplaces have taught the workforce that money isn't everything.

Your employee value proposition is your opportunity to show them that your company is not like the last place they worked at that they hated. 

If you're a freelancer, you know just how full your industry is with people who aren't skilled, dependable, or both. On the flip side, you also know there are brands/businesses that won't value your work and aren't interested, willing, or able to pay your premium prices.

With the right value proposition, you can let potential clients know you're the solution they're looking for and get higher-quality leads who value you and your work.

Heck, even in the dating pool, you've got to have a way to separate yourself from all the other people in the very congested and murky waters.

Who knows, maybe the right value proposition could help you get fewer rejections and more swipes to the right.

It's all about knowing your audience and what they want.

Because at the end of the day, everything is all about the customer/employee/client/business/date you're trying to attract.

Make it easy for them to choose you.

Now that you have a better grasp of value propositions and their potential benefits, it’s time to take action. How do you think you can leverage the power of value propositions to transform your business, career, or personal endeavors?

If you’re thinking “Yes, I know what a value proposition is, but I have no idea how to write one,” don’t worry, I’ve got you covered. I’m going to be diving into that topic next.