What is a value proposition
Also known as: customer value proposition, UVP
A value proposition is the clear promise of what customers gain by choosing an offer: which problem it solves, what result it delivers and why it beats the alternatives for that audience. The term was coined in 1988 by McKinsey consultants Michael Lanning and Edward Michaels. A good value proposition fits in a few sentences and appears before anything else on the page.
A scheduling app for hair salons said at the top of its site: The complete management solution for your business. The line says neither who it is for nor what it solves.
The new version: A full calendar, no no shows: clients book by message and get an automatic reminder the day before. Below it, a real no show reduction figure from a customer and a button to try it. In one line, a salon owner knows whether it is for them.
What a good value proposition has
- A clear audience: who it is for, phrased so people recognize themselves.
- A problem or desire: what hurts or what people want to achieve.
- A concrete result: what changes after buying, ideally measurable.
- A difference: why this offer, rather than a competitor's or doing nothing.
- Proof: numbers, cases or a guarantee that make the promise believable.
The Value Proposition Canvas
Strategyzer, Alexander Osterwalder's company, created the Value Proposition Canvas as a way to clarify customers' jobs to be done, pains and gains in order to design products and services they need and want. It works alongside the Business Model Canvas and zooms in on one point: the fit between a customer segment and the offer.
| Customer side | Offer side | |
|---|---|---|
| What gets done | Jobs: what the customer is trying to accomplish | Products and services offered |
| What bothers | Pains: risks, costs and obstacles | Pain relievers |
| What is wanted | Gains: desired outcomes and benefits | Gain creators |
Value proposition, slogan and positioning
A slogan is a short brand line made to be remembered. Positioning is the place a brand wants to hold relative to competitors. A value proposition is more concrete: for a specific offer, it explains what the customer gains.
A company usually has one positioning and several value propositions, one for each product or audience.
Where it needs to appear
- In the headline and first screen of the home page and landing pages.
- In ad copy, adapted to each channel's space.
- In the sales team's pitch, with the same words.
- In proposals sent to customers.
- In social media bios and the Google Business Profile.
How to test it
Show the line to someone from the audience for five seconds and ask what the company does and for whom. If the answer is off, the proposition is not clear. In paid media, you can compare headline versions in ads and landing pages and let the numbers decide.
Frequently asked questions
What is a value proposition?
The clear promise of what customers gain by choosing an offer: the problem solved, the result delivered and why it beats the alternatives.
Who coined the term value proposition?
McKinsey consultants Michael Lanning and Edward Michaels, in 1988.
How do I write a value proposition?
Say who it is for, which problem it solves, what result it delivers and why it is different, and back it with proof. One or two sentences, plus a supporting line.
What is the Value Proposition Canvas?
A Strategyzer tool that matches the customer profile (jobs, pains and gains) with the offer map (products, pain relievers and gain creators) to find the fit between them.
What is the difference between a value proposition and a slogan?
A slogan is a brand line made to be remembered. A value proposition explains concretely what the customer gains from a specific offer.
Related terms
- Brand positioningBrand positioning is the place a brand wants to hold in customers' minds relative to the alternatives: what...
- BrandingBranding is managing everything that shapes how people perceive a brand: name, visual identity, tone of...
- CopywritingCopywriting is writing meant to lead readers to an action: buying, clicking, signing up or requesting...
- Buyer personaA buyer persona is a description of a company's typical customer, with a name, context, goals, questions and...
- Landing pageA landing page is the page a person reaches after clicking an ad, email or link, built to lead to a single...
- ICPAn ICP, short for ideal customer profile, is the kind of company, or customer, that gets the most out of what...
Rodrigo Fávaro
Founder of ROO3, a marketing and technology agency in São José do Rio Preto, Brazil. Builds AI products running in production (Tobia, gerar.app, Pense Mercado) and maintains the AI Benchmark, a public ranking of AI models.
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