Business learning: What is a value proposition?

A value proposition is a special message that tells people why your product or service is excellent and better than others or alternatives. It explains how your product will solve or improve the customer's problem.

Some aspects of the value proposition:

• Relevance: How your product or service solves a problem or improves things for the customer.
• Specific Benefits: What benefits will the customer get from using it?
• Differentiation: What makes your product or service different from and better than others?

Some value proposition examples:

• The iPhone is unique because it looks great, is easy to use, and has many cool features that make life easier and more fun.
• Lululemon exercise shorts are fantastic because they are comfy and cool and make you look good while you're playing and exercising.
• Nike shoes are unique because they help you to play your best, are comfy, and add a touch of style to your game.

A value proposition answers, "Why should a customer buy from you instead of others?" It tells customers what makes your product amazing and why people should buy it.