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Value Proposition

What is a value proposition?

A value proposition is a clear statement of how your product solves a specific customer problem, what benefits they get, and why they should choose you over alternatives. It’s the promise you make before they use the product.

Use it when: you need to align the team and communicate to users or stakeholders what you offer and for whom. It sits after problem understanding and before feature lists.

Copy/paste template

For [target user/segment] who [problem or need], our product [category/solution] that [key benefit]. Unlike [alternative], we [differentiator].

Example: “For freelancers who lose time on admin, our product is an invoicing tool that turns time logs into invoices in one click. Unlike spreadsheets, we auto-calculate tax and send reminders.”

Why value propositions matter

  • Aligns the team on what you’re promising and to whom.
  • Guides positioning, messaging, and feature prioritisation.
  • Makes it easier to say no to work that doesn’t support the proposition.
  • Gives users a quick reason to care.

What a good value proposition includes

Checklist

  • [ ] Names the target user or segment.
  • [ ] States the problem or need you address.
  • [ ] Describes the benefit (outcome), not just features.
  • [ ] Differentiates from alternatives (competitors or “do nothing”).
  • [ ] Is testable: you can validate it with research or experiments.

Common formats

  • One-liner: For [user], who [need], we [solution] that [benefit]. Use for pitches and headers.
  • Value Proposition Canvas: Customer profile (jobs, pains, gains) + value map (products, pain relievers, gain creators). Use when you want to align the proposition with evidence.

Examples

Example (the realistic one)

“Project managers who struggle with scattered updates want a single place to see status. Our tool aggregates tasks, comments, and timelines in one view so they can report to stakeholders without chasing people. Unlike email threads, we show who’s blocked and what’s due when.”

Common pitfalls

  • Feature-led instead of benefit-led: listing capabilities without the “so what”. → Do this instead: lead with the outcome for the user.
  • Too broad: “we help everyone be more productive”. → Do this instead: name a specific user and problem.
  • No differentiation: it could describe any competitor. → Do this instead: spell out what you do differently and why it matters.
  • Written in a vacuum: no user or problem research. → Do this instead: ground it in a problem statement and user research.
  • Value proposition vs positioning: the proposition is the promise; positioning is where you sit in the market relative to alternatives. Proposition supports positioning.
  • Value proposition vs problem statement: the problem statement describes what’s broken; the value proposition is how you’ll fix it and why they should care.
  • Value proposition vs tagline: a tagline is a short hook; the value proposition is the full statement you can expand in a sentence or two.
  • Problem statement – define the problem before you write the value proposition.
  • Jobs to be done – the “job” and context inform what value you promise.
  • Lean canvas – the Unique Value Proposition block is where this lives on the canvas.
  • User research – evidence for pains, gains, and differentiation.
  • Persona – the “for” in your proposition; keep personas research-based.
  • Minimum viable product – the MVP should deliver on the core of your value proposition.
  • A/B testing – test messaging and flows that communicate the proposition.

Next step

Draft one sentence using the template, then pressure-test it with User research or read Problem statement to ensure the problem is clear first.

Related Terms