Value Proposition

A Value Proposition is a simple statement that tells customers why they should choose your product or service over others.

It’s basically a promise that shows how your offer solves a problem or meets a need they have.1

It lists the benefits, explains how it’s different and better than competitors’ offerings, and promises value customers will believe in.2


The primary purpose of a value proposition is to tell customers why they should choose your product or service over others.

It focuses on showing your unique value and benefits, grabbing their attention, and clarifying how they’ll benefit.2

How Value Proposition Works

A value proposition works by bridging the gap between your offer and your target audience’s needs.

Here’s how it works:

  1. Identifies Customer Needs: The process starts with understanding the customers’ needs, pains, and what they value most.
  2. Highlights Unique Offerings: The company then identifies what makes its product or service unique and how it stands out from competitors.
  3. Communicates Benefits: The company clearly explains how its product or service will benefit you. It focuses on how it solves a problem, makes life easier, or provides enjoyment.
  4. Connects Emotionally: It also tries to make you feel understood and shows that the company cares about what matters to you.
  5. Promises Delivered: Lastly, the company has to ensure it does what it said it would, meeting or beating your expectations.3


Here are some common places where you’ll find a value proposition being used:

  • Websites: Right when you visit a site, so you know what’s good about what they’re selling.
  • Flyers and Emails: In things you read about the company, tell you why you should be interested.
  • Talking to Salespeople: They explain why their stuff is the best choice when considering buying.
  • On the Product: On the packaging, showing you why it’s worth buying.
  • Social Media: In posts and ads, quickly showing you why their stuff is cool.
  • Customer Service: When asking for help, remember why what you bought is valuable.
  • Presentations to Investors: Convincing people to invest by showing what makes their business or product special.


Let’s take a ride-sharing service like Uber as an example.

Here’s a possible value proposition for Uber:

Value Proposition: “Skip the hassle of parking and public transportation. Get affordable, reliable rides in minutes with the tap of a button. Uber connects you with safe and friendly drivers who will get you to your destination quickly and comfortably.”

This value proposition highlights several key benefits for potential customers:

  • Convenience: No need to worry about parking or waiting for public transportation.
  • Speed and Efficiency: Get rides quickly and get to your destination faster.
  • Affordability: Competitive pricing compared to taxis or car ownership.
  • Reliability: Access a network of available drivers whenever you need a ride.
  • Safety and Comfort: Trustworthy drivers and comfortable rides.

Related Terms


1. Wikimedia Foundation. (2023a, September 10). Value proposition. Wikipedia.

2. Twin, A. (2024b, February 19). Value proposition: How to write it with examples. Investopedia.

3. Mohd Satar, N. S., Dastane, D. O., & Ma’arif, M. Y. (2019). Customer value proposition for E-Commerce: A case study approach. International Journal of Advanced Computer Science and Applications (IJACSA)10(2), 454-458.

4. Osterwalder, A., Pigneur, Y., Bernarda, G., Smith, A., Papadakos, T. (2015). Value Proposition Design: How to Create Products and Services Customers Want. Germany: Wiley.

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