A value proposition states what a product or service gives its customers or users that no other product or service does. It describes the problem or needs that the product or service solves and explains why it is a better solution than other options on the market.
Most of the time, a value proposition has the following parts:
- Customer Needs: Lists the specific needs or problems that the customer group you’re trying to reach has.
- Solution: Explain how the product or service solves the problem or meets the need that the customer has pointed out.
- Unique Differentiation: Points out what makes the product or service different from others on the market. This could be a unique feature or benefit.
- Proof: This is where you back up the claims made in the value proposition with facts or testimonials.
Any business needs a strong value proposition because it helps set the product or service apart from competitors and gives customers a clear reason to choose it.
A value proposition should be short, clear, and easy to understand. It should also focus on the customer, not the product or service’s features.
Usage
It is used in Requirement Management (Scope Management) and Product Management
