What is a Value Proposition?
A value proposition is the clearest way to communicate why a customer should choose you over the competition. It’s not just about what you do—it’s about the difference you make.
For a value proposition to be effective, it must:
✅ Resonate – Speak directly to your customer’s priorities and pain points.
✅ Differentiate – Show how you stand apart in ways that matter.
✅ Substantiate – Prove you can deliver on your promise.
The Three Levels of a Value Proposition
However, a great value proposition isn’t one-size-fits-all. The most effective sellers tailor their messaging at three levels:
1️⃣ Segment-Level Value Proposition (Broad Market Fit)
- Who it’s for: An industry or business segment.
- Purpose: Explains how you help businesses like theirs.
- Example: “We help B2B technology companies shorten sales cycles and improve close rates through value-based selling.”
2️⃣ Customer-Level Value Proposition (Tailored to a Specific Business)
- Who it’s for: A specific customer within that segment.
- Purpose: Shows how you help them based on their challenges.
- Example: “For [Customer Name], we reduce discounting and increase revenue per deal by training sellers to communicate business impact effectively.”
3️⃣ Individual-Level Value Proposition (Personalized for Decision-Makers)
- Who it’s for: A specific stakeholder (CEO, CFO, Sales Director).
- Purpose: Speaks directly to their role, goals, and concerns.
- Example: Our approach will help you ensure your team are having customer first rather than product first sales conversations, helping you reduce sales cycle times and improve margins.
Step-by-Step: Crafting Your Value Proposition
Step 1: Identify Your Customer’s Key Priorities
Ask yourself:
- What challenges do they face at the segment, customer, and individual level?
- What outcomes are they trying to achieve?
- What would success look like for them?
Tip: Your value proposition should start with the customer’s world—not your product.
Step 2: Define Your Unique Value
Consider:
- What do we do that helps the customer solve their problems?
- How is our approach different from (and better than) competitors? (and valued by the customer)
- Why should they believe us?
Formula: We help [ideal customer] achieve [key outcome] by [unique approach], leading to [measurable impact].
Step 3: Structure Your Value Proposition
A compelling value proposition should be:
1️⃣ A Clear Headline – Summarize your core benefit in one sentence. Example: “We help sales teams win more deals, more profitably, without dropping their price.”
2️⃣ A Brief Explanation – Explain how you deliver that benefit. Example: “Our proven 5-step Value Selling process helps sellers communicate impact, differentiate from competitors, and close deals profitably.”
3️⃣ Proof & Credibility – Back it up with data, case studies, or testimonials. Example: “Teams using our framework see a 23% increase in deal conversion rates within 6 months.”
Step 4: Test & Refine
Your value proposition isn’t set in stone. Test it with customers, refine the wording, and make sure it resonates.
Quick Check:
✅ Does it focus on outcomes, not features?
✅ Would your customer pay more because of it?
✅ Can you prove it?
Common Pitfalls to Avoid
❌ Too Generic – “We provide high-quality solutions.” (So does everyone.)
❌ Too Product-Focused – “We offer the best software with X features.” (Features aren’t value.)
❌ No Proof – If you can’t back it up, it won’t convince.
Your Next Step
Your value proposition is key – it’s the answer to the customer’s question “Why should I choose you?” Want to sharpen yours? Book a call and let’s have a quick chat http://bit.ly/mikesdiary