How to write a value proposition

A value proposition, is a statement that succinctly outlines how your business, product or service is different from that of your competition and the value it creates for your ideal customer. It identifies what makes your business the better choice, and why your target clients should choose you over the competition.

Your value proposition (sometimes called USP unique selling proposition) can be an effective tool that helps you focus your marketing goals, and verify that every piece of marketing collateral you create successfully sets you apart from the competition.

Your value Proposition can also be an important part of your branding that makes your business memorable.

This four-step exercise will help you write a unique selling proposition for your company, new product or service.

Step 1: Go Back to the Basics

The first step of writing a Value Proposition requires that you take a step back and review some of the basics included in your mission statement, business plan, market analysis, and overall business goals.

Start by answering some preliminary questions that recap what your value is to the ideal customers.

• What products or services are you selling?
• Who is your target audience?
• What does your business do well?
• What is your most important customer-focused business goal?

Step 2 Identify the key problem you solve 

The next step is to clearly identify your target audience's problem and explain how your product or service solves that problem.

Step 3: Identify the Differentiators

This step focuses on identifying what it is about your solution to your customer's problem that is different, or better than, the solution your competition offers. The value you identify here will be one of the primary reasons why your customers will choose you instead of a competitor.

Step 4: Make a Promise

This step combines the most important elements of the previous steps into a concise statement that embodies the value your company has to offer. Keep in mind that your value propsition essentially implies a promise, or a pledge, you are making to your customers.

You may want to review some examples of unique selling propositions to get a feel for how successful companies craft a statement that encompasses the value they offer their customers.

Once you have a working value prop, it's always a good idea to sleep on it, run it by others in your company, or even create a focus group to measure the impact it has. It may take several tries, but once you hit the perfect value prop, it can be an integral element of your marketing toolbox.

Need to create your value prop? Start here.