Value Proposition

Let's start this step by distilling what we learned from Steps 1 through 4 into a value proposition format. A value proposition is a promise to solve a problem, address a need, or deliver a benefit. It's the primary reason a customer should buy from you. It lays out the value that you are providing to your customer. After all, if you don't offer value to the customer, you have no business. Similar to our customer persona canvas, we will update this continuously as we learn more about our customers and how to solve their problems.

Value Proposition Format:

We prefer the following format for your value proposition:

Our [product/service] helps [customer segment] with [problem] by providing [benefit].

We're different/better because [competitive differentiation]."

A value proposition includes:

• What are you selling?
• Who is it for?
• What do they get out of your product or service at the end?
• Why does your customer care?

A good value proposition is:

• Insightful: arises from a deep familiarity – or insight – into the people you serve.
• Unique: yields a product or service that you — and only you — can provide. Customers can't get it anywhere else.
• Targeted: focused, and don't try to do too much for too many people.

A value proposition is NOT a marketing slogan (so think less like an ad executive and more like a school teacher). While your marketing slogan will undoubtedly come from your value proposition, a marketing slogan will be vague and focus on eliciting emotions. A value proposition is meant to be clear and specific and can be used to communicate internally with your team and investors - not just customers!

<aside> 🙌 Value Proposition Tips: A good value proposition should be: ****- clear

• easy to understand
• use the customer’s language
• read and understood in five seconds
• avoids hype and jargon

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Comprehension Test

One way to test whether our value proposition is clear and specific is to conduct a comprehension test. In this test, we show the value proposition to a participant for five to ten seconds and then remove it. Then, we ask them to explain the value proposition in their own words from memory. This allows us to evaluate whether our message gets to the customer. Positive conversion occurs when more than ninety percent of participants comprehend.

✅ Do It: Ideating Solutions

Remember in Step 1: Idea Generation, we diverged and converged around the problem that we wanted to solve, and then we brainstormed solutions. We'll be doing that again, but this time we will bring in all of the insight we've gained from our customer interviews about our early adopters’ problem, behaviors, and expectations. We'll also leverage the industry knowledge that has been developed. In Ideating Solutions, you're going to do general solution ideation to expand upon and illuminate all of the different ways to solve your customer's problem, be it product or service. This activity will also help us develop our value proposition in the next section. Grab a smart friend. Ideating is always more fun with a partner or team!

<aside> 🔨 Workbook Link

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✅ Do It: Create a Value Proposition