connecteddale

Strategy Coach = Clarity + Alignment

Creating a Distinct Value Proposition

A value proposition states, in the customer's terms, the specific reason they should buy from you instead of the next best alternative, not a list of features but a single sharp claim.

Five boxes run in sequence, from the customer's real need through to a one-sentence claim tested against them.

1 List customer needs 2 List real alternatives 3 Find the gap 4 State it in one sentence 5 Test on real customers
The sequence for building a value proposition worth testing.

Reach for this when…

How to run it

  1. List what your target customer actually needs, in their language, not yours.
  2. List what your real alternatives, including doing nothing, offer them.
  3. Find the gap: what you give them that the alternatives don't.
  4. State it as one sentence: for [customer], [product] gives [benefit], unlike [alternative].
  5. Test the sentence on real customers and cut anything they don't recognise as true.

A worked example

Situation. Sofie Vermeulen ran Huis & Haard, a homeware retailer in Ghent, Belgium, with a value proposition that read like every other homeware shop: quality products, great prices, wide selection.

Applied. She interviewed a dozen repeat customers and found the real reason they chose Huis & Haard over cheaper online options was that everything was already sized to fit small apartment layouts, and rewrote the proposition around that one fact.

Result. The new line, furniture sized for the flats we actually live in, became the shop's tagline, and referrals from existing customers doubled.

1 List customer needs 2 List alternatives 3 Find the gap 4 State one sentence 5 Test with customers
Isla Home's route to a tested value proposition.

The catch

A value proposition is easy to write and easy to write badly - most read the same as the competitor's because nobody actually asked customers what made them choose. It also dates quickly if the market catches up to your one advantage. Revisit it before you believe it's permanent.

If a competitor could paste your value proposition onto their own homepage and nobody would notice, it isn't one.

Origin: Geoffrey Moore (positioning statement, Crossing the Chasm)