Value Proposition


A value proposition is a promise of value to be delivered, communicated, and acknowledged. It is also a belief from the customer about how value will be delivered, experienced and acquired.

Value Proposition

What is a ‘Value Proposition’

A value proposition is a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service. This statement convinces a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. Companies use this statement to target customers who will benefit most from using the company’s products, and this helps maintain an economic moat.

Explaining ‘Value Proposition’

A value proposition is a promise by a company to a customer or consumer segment. It is an easy-to-understand reason why a customer should purchase a product or service from that specific business. A value proposition should be a clear statement that explains how a product solves a pain point, communicates the specifics of its added benefit, and states the reason why it’s better than similar products on the market. The ideal value proposition is concise, and it appeals to a customer’s strongest decision-making drivers.

Creating a Successful Value Proposition

A company’s value proposition communicates the number one reason why a product or service is best suited for a customer segment. Therefore, it should always be displayed prominently on a company’s website and in other consumer touch points. It also must be intuitive, so that a customer can read or hear the value proposition and understand the delivered value without further explanation.

Further Reading

  • The blended value proposition: Integrating social and financial returns – [PDF]
  • The co-creative practice of forming a value proposition – [PDF]
  • The critical role of information sharing to the value proposition of a food systems network – [PDF]
  • Value proposition for digital technology innovations of uncertain market potential – [PDF]
  • The HR value proposition model in the Arab Middle East: identifying the contours of an Arab Middle Eastern HR model – [PDF]
  • Customer value proposition, corporate transformation and growth in Caribbean financial firms – [PDF]
  • Value proposition as a framework for value cocreation in crowdfunding ecosystems – [PDF]
  • Creating a Balanced Value Proposition–Exploring the Advanced Business Creation Model – [PDF]