How to write a value proposition statement
Every successful business needs a clear and concise value proposition statement.
But first, in case you’re wondering, what is a value proposition?
It's a statement used by marketing and product teams to communicate how their product or service meets the needs or solves the problems of their target customers.
You may have heard a value proposition referred to with these other terms such as:
Value statement
Value prop
Brand proposition
Unique selling proposition (USP)
Unique value proposition (UVP)
Regardless of the term used, they all aim to create a statement that communicates the value your product or service provides to customers.
Here are some examples:
HubSpot
"HubSpot helps millions of organizations grow better, and we'd love to help you grow too. Our all-in-one marketing, sales, and customer service software is designed to make life easier for you, your team, and your customers."
Salesforce
"Salesforce is the world's #1 CRM platform. Our cloud-based software helps companies of all sizes connect with customers, partners, and employees in new ways. With Salesforce, you can transform every aspect of your business, from sales and marketing to customer service and beyond."
Dropbox
"Dropbox is a modern workspace designed to reduce busywork - so you can focus on the things that matter. Sign in and put your creative energy to work."
Zendesk
"Zendesk is the leading customer service platform that helps businesses provide excellent customer service. Our software enables companies to be more reliable, flexible, and scalable in their customer relationships, so they can be there for their customers anytime, anywhere."
Slack
"Slack is a messaging platform for teams that makes communication easy and efficient. With Slack, you can quickly share files, collaborate on projects, and communicate with your team in real-time, all in one place."
Zoom
"Zoom is a video conferencing platform that connects people from anywhere, on any device. With Zoom, you can have high-quality video meetings, screen sharing, and instant messaging, all in one easy-to-use platform."
Square
"Square is a payment processing platform that makes it easy for businesses to accept payments and manage their finances. With Square, you can accept credit card payments, track your sales, and manage your inventory, all from your smartphone or tablet."
Tesla
"Tesla is a leader in electric vehicles and renewable energy. With Tesla, you can drive the future with electric cars that are stylish, fast, and environmentally friendly, and power your home with clean energy from solar panels."
Mailchimp
"Send better email. Mailchimp's all-in-one Marketing Platform makes it easy to design beautiful, personalized marketing campaigns for your business. Our easy-to-use email marketing and automation tools help you reach your audience and drive results, whether you're a small business, a freelancer, or a large enterprise."
By clearly articulating their value proposition, these startups communicate how their product or service solves the problems of their target customers.
The four dimensions of a value proposition
A good value proposition statement covers four key dimensions:
[1 Customer] Clearly define who the target customer is
[2 Problem] What is the problem you solve for them?
[3 Product] Describe the specifics of your product
[4 Solution] Explain how the product solves their problem
Here is an example of this used in a value proposition statement:
Our SaaS product helps [businesses] [save time and money by automating tedious tasks and streamlining workflows]. With our [intuitive interface and powerful features], you can [focus on what matters most – growing your business].
Go ahead and change the order or customize this to fit your needs. This is intended to be a system to help get you started; it’s not a set of rules.
Templates for a Saas business
Here are three examples of generic Saas business value propositions. As a shortcut, you can copy/paste these into a doc and edit them to get started:
"Our SaaS product helps businesses save time and money by automating tedious tasks and streamlining workflows. With our intuitive interface and powerful features, you can focus on what matters most – growing your business."
"Our SaaS product is the ultimate solution for managing and optimizing your online presence. From social media management to email marketing and beyond, our platform has everything you need to connect with your customers and drive results."
"Our SaaS product is a game-changer for teams looking to collaborate and communicate more effectively. With features like real-time messaging, video conferencing, and project management, you can stay connected and get more done from anywhere."
A five-step process for writing a value proposition statement for your company or startup
When writing a good value proposition for you, be sure to consider the following:
Identify your target customer: The first step is identifying your target customer. Who are you trying to reach with your product or service? What are their needs and pain points?
Articulate the benefits of your product or service: You'll want to articulate the benefits clearly. What value do you provide? How does it solve your customers' problems or pain points?
Explain how your product or service is unique: It's essential to differentiate your product or service from competitors. How is it unique? What makes it stand out?
Keep it concise: A good value proposition is brief and to the point. Aim for a single sentence or short paragraph that communicates your product's or service's value.
Test and refine: Once you've written your value proposition, it's a good idea to test it with potential customers to see if it resonates. Based on their feedback, you may need to refine your value proposition better to communicate the value of your product or service.
If you follow these steps, you’re sure to write a value proposition that effectively communicates the benefits of your product or service to potential investors.
