If I asked you these questions right now, would you be able to answer them?
- What does your company do?
- What product does your company sell and how is it different from the competition?
- Whom is this product for?
Seriously, stop reading right now and try to answer these questions aloud or in your head.
Can you answer these questions in 1-3 sentences and in a clear way that wouldn’t invite follow-up questions from an average customer?
Can everyone in your organization?
What is a Value Proposition?
A value proposition is simply a way to connect a product offering with customer needs in a clear way. It should resonate with customers and would motivate them to try or buy your product. Essentially, the value proposition is synonymous with unique selling proposition and product positioning.
In order to find its product-market fit, startups need to come up with value proposition statements for its products. At first, you start with a hypothesis or a guess if you will.
This hypothesis then needs to be validated with customers and refined as the product evolves and as the company acquires more knowledge about the market and customers.
A validated value proposition statement is the ultimate outcome of finding the product-market fit. This statement should encapsulate key insights you’ve gathered about customers, as well as unique product strengths.
Do You Need One?
If you don’t have one, you’re shooting in the dark. If you have one but it’s not validated, you might be deluding yourself.
Here are some practical benefits of developing a value proposition: