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How to write a value proposition, with a simple template

Published by Zubair Afzal, responsible editor

First published Updated 5 min read

What it is

What a value proposition is, and what it is often confused with

A value proposition has to work on a stranger who has never heard of the business, in the time it takes to read it once.

It gets confused with two other things. A tagline is three to six words meant to be remembered, and only works once someone already knows the business. A mission statement describes why the business exists, a separate question from what it sells and who buys it.

Writing all three as one exercise usually produces something that half-answers each question. Write the value proposition first; it is the one a new visitor needs immediately.

The template

A simple template to fill in

Fill in each blank for your business, then combine them into one paragraph. The template builds on Strategyzer’s Value Proposition Canvas.

  1. Name the specific buyer

    Not "businesses" or "people", but the actual role or situation: "operations managers at logistics companies", "parents booking a first family holiday". A value proposition aimed at everyone reaches nobody.

    You get: One specific buyer, named in their own words

  2. Name the job they are trying to get done

    The outcome they want, not the feature you sell. "Know which supplier will deliver on time" is a job. "A supplier scorecard dashboard" is a feature.

    You get: One outcome, stated as the buyer would state it

  3. Name what gets in their way today

    The current alternative: a competitor, a manual process, or doing nothing. This is what your value proposition has to beat, so name it accurately, not as a straw man.

    You get: The real current alternative, named specifically

  4. Name the one thing that makes you the better route to that outcome

    One, not three. If you cannot pick one, solve that before writing the sentence, because a value proposition with three equal points reads as a list, not a reason.

    You get: One clear reason, not a feature list

  5. Combine the four into one paragraph

    A working shape: "For [buyer], who need to [job], [business] is the [category] that [reason], unlike [alternative]." Adjust the wording so it sounds like your business, but keep all four parts present.

    You get: A one-paragraph draft, ready to test on a stranger

A value proposition compared with a tagline and a mission statement

Three different jobs, often written as if they were one.

What each statement is for, and where it lives
DimensionWhat it is forWhere it lives
Value propositionExplains what you do, for whom, and why, to someone who has never heard of you.Homepage hero section, pitch opening, ad landing page.
TaglineReminds someone who already knows the business what it stands for.Under the logo, on packaging, at the end of an ad.
Mission statementStates why the business exists, for the team and for investors.About page, internal documents, investor materials.

What weakens a draft

Mistakes to check for once you have a draft

Most weak value propositions have one or more of these problems.

  • It names the industry instead of the buyer. "For businesses in logistics" is an industry. "For operations managers chasing late suppliers" is a buyer.
  • It lists features instead of the outcome. A dashboard, a report and an alert are features. Knowing which supplier will let you down next month is the outcome.
  • It uses words that mean nothing without a definition: innovative, solutions, seamless, holistic. Cut any word that could apply to any business in any industry.
  • It could sit on a competitor's homepage unchanged, because nothing in it is specific to your business.
  • It tries to please everyone by naming three or four buyers at once. Pick the primary one, and write a second version only if another buyer is different enough to need one.
  • It was approved by the team and never tested on anyone outside it, though the people who wrote it are the worst judges of whether a stranger understands it.

Questions

Common questions about writing a value proposition

What is a value proposition, in plain terms?

One paragraph stating what you do, who it is for, and why it beats the alternative. It answers the question a new visitor asks in the first five seconds: is this for me, and why should I care?

It is not a slogan or a mission statement. It is closer to what you would tell a stranger who asked what your business does, written down and refined.

What is the difference between a value proposition and a tagline?

A value proposition explains; a tagline reminds. A value proposition can run to two or three sentences and must be understood on first read. A tagline is three to six words and only works once people already know what the business does.

Write the value proposition first, and a good tagline sometimes falls out of it. Writing the tagline first tends to produce something catchy that explains nothing.

How long should a value proposition be?

One to three sentences on a homepage or in a pitch opening. If it takes a paragraph to explain, it is doing the job of an "about" page.

A headline plus one supporting sentence is usually enough: the headline states the outcome, the sentence states who it is for and how you get there.

Can one business have more than one value proposition?

Yes, if it sells to more than one kind of buyer with a clearly different outcome. A landing page aimed at each buyer should carry the version written for them.

What it should not have is a different value proposition on every page by accident. Pick the versions deliberately, and know which page each belongs on.

How do I know if my value proposition is any good?

Read it to someone who has never heard of the business and ask them to repeat back what it does. If they get it right after one read, it works. If they ask a clarifying question, that tells you what the sentence is missing.

A second test: read it alongside a competitor's. If either could sit on the other company's homepage unnoticed, neither is specific enough yet.

References

Sources for how to write a value proposition

The official documents and research this page is based on. Platform rules change, so check the source before you act on a detail.

  1. Strategyzer: The Value Proposition Canvas
  2. Strategyzer: The Business Model Canvas
  3. Harvard Business Review: Know Your Customers' "Jobs to Be Done"

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Get your value proposition tested on real buyers

Send us your draft. Our specialists test it against the buyer, the job and the alternative it is meant to beat, and tell you what is missing.