Value Proposition: What It Is and How to Write Yours

Published Friday 30 January 2026

Table of contents

• What is a value proposition?
• What a value proposition isn't
• What is the function of a value proposition?
• What makes a good value proposition?
• Value proposition examples
• Craft your own value proposition
• Communicate your value proposition
• Strengthen your business foundation
• FAQs on value propositions

Key takeaways

• Create different value propositions for each target audience and channel, adapting the wording for social media, direct sales, and website while keeping the core message consistent across all platforms.
• Focus on customer benefits rather than product features by clearly stating what problem you solve, how you solve it, and including specific, measurable outcomes when possible.
• Test your value proposition with customers and colleagues regularly, then refine it based on feedback and market changes to ensure it remains relevant and effective.
• Communicate your value proposition consistently across all touchpoints including your website, marketing materials, and internal documents while training staff to share the same message with customers.

What is a value proposition?

A value proposition is a short statement that communicates the unique value your product or service delivers to customers. It answers the fundamental question: "Why should customers choose you over competitors?"

A strong value proposition accomplishes three things. It captures your target audience's attention, differentiates you from competitors, and gives customers a clear reason to buy.

Your value proposition serves as the foundation for all business communications:

• Internal alignment: Rallies employees around a unifying principle, which matters when research suggests only 5 per cent of employees clearly understand their company's strategy.
• External messaging: Drives consistent advertising and marketing communications
• Strategic focus: Guides product development and customer service decisions. For example, Bunnings' strategy to have ample staff is based on the rationale that without them, the company could lose 20 per cent of sales.

What a value proposition isn't

A value proposition differs from other marketing tools in its specific focus:

• Value proposition vs mission statement: A mission statement explains why your company exists. A value proposition explains what specific value your product or service delivers.
• Value proposition vs slogan: A slogan captures one memorable aspect of your business. A value proposition provides a complete reason to buy.

For example, suppose you own a landscaping business.

• Your mission statement might read: 'To improve the environment by designing and maintaining beautiful landscapes.'
• Your tagline might read 'Your native plant experts.'
• Your value proposition might read: 'To use native plants to create a natural look.'

What is the function of a value proposition?

A value proposition presents the specific benefits your product or service brings to customers.

Customise for each audience: Create different value propositions for different target audiences based on their unique needs.

Adapt to each channel: Word your proposition differently across channels:

• Social media: Shorter, more conversational tone
• Direct sales: Detailed, benefit-focused language
• Website: Clear, scannable format

Update over time: Update your value proposition when you add features or when new competitors enter the market.

What makes a good value proposition?

A good value proposition has five key characteristics:

• Clear and concise: Simple, direct language that's easy to understand
• Customer-focused: Addresses a specific customer need or problem
• Differentiated: Highlights what makes you unique from competitors
• Benefit-driven: Conveys tangible benefits, not just features
• Brand-aligned: Reinforces your brand identity and strategic positioning

Value proposition examples

Seeing how other businesses do it can help you craft your own. Here are a few examples of value propositions for different types of small businesses.

For a freelance graphic designer

'Small businesses get a professional brand with custom logo design and branding packages, delivered in two weeks.' This proposition is clear about who it helps (small businesses), what it does (custom logo design), and the key benefit (fast delivery).

For a local coffee shop

'Your daily escape with ethically sourced coffee, homemade pastries, and a quiet space to work or relax.' This focuses on the customer experience and product quality, highlighting benefits beyond just a cup of coffee.

For a residential builder

'You get a high-quality, sustainable home on time and on budget, with transparent communication every step of the way.' This addresses common homeowner pain points like budget overruns, delays, and poor communication.

Craft your own value proposition

Here are practical steps to create a value proposition that will convey the unique value of your business.

Identify your target audience

Follow these steps to identify your target audience:

1. Define your ideal customer: Create specific customer profiles based on demographics and needs
2. Research their problems: Survey or interview customers to understand their real challenges
3. Prioritise their needs: Identify what matters most to them and why they would pay for a solution

Clarify your unique selling points

Identify what makes you unique through these methods:

Direct customer feedback: Ask existing customers why they chose you over competitors.

Sales team insights: Your sales staff interact with customers daily and understand common objections and motivations.

Competitive analysis: Compare your offerings across these areas:

• Features: Unique functionality or capabilities
• Price: Value for money or cost advantages
• Quality: Superior materials, service, or outcomes

Include the benefits to the customer, not features

A customer-centric value proposition focuses on the customer's perspective, not your company's features.

Identify the problem: Clearly state what customer problem your product or service solves.

Explain the solution: Describe how your offering solves that problem and improves their situation.

Quantify the benefits: Include specific, measurable outcomes when possible. For instance, Bank of New Zealand (BNZ) highlighted a key improvement by communicating it was cutting the average time for business onboarding by half. Numbers like these increase credibility and make benefits tangible for customers.

Value proposition templates

Once you've done your research and analysis, you're ready to draft your message. You can approach writing the message in several ways. One way is to use a formula or a template. Here are several template examples:

• 'Help [X] do [Y] by doing [Z].'
• 'For [target customer] who [needs or wants X], our [product/service] is [category of industry] that [benefits].'
• The Harvard Business School method, which recommends that it should answer several questions: 'What is my brand offering?', 'What job does the customer hire my brand to do?', 'What companies and products compete with my brand to do this job for the customer?' and 'What sets my brand apart from competitors?'

Keep it simple, use language your customers might use, and don't be afraid to convey emotion. Ensure the proposition aligns with your overall brand identity and market positioning in your business plan.

If you're still working on that, check out the guide How to write a business plan and grab a free business plan template.

Test and refine

As with all aspects of your marketing, you'll want to test the effectiveness of your value proposition and refine it when necessary.

One way to test is to share it with customers or internal colleagues. Run it past your mentor if you have one. Use their feedback to improve the message. You'll also regularly revisit and update the proposition as your market changes.

Communicate your value proposition

Now you've crafted a strong value proposition, you need to make sure everyone knows it. Communicate it directly to customers and train your staff to share it.

Your value proposition should appear:

• on your website's home page and product pages
• in brochures
• in all your marketing campaigns
• on all marketing or advertising materials

You'll also include the proposition in your internal documents, like your business plan, and in any documents you present to potential funding sources.

Although you might change the wording slightly depending on your audience, keep the central message consistent across all your channels. A consistent message reinforces your brand and shows that you are a focused and trustworthy company.

Strengthen your business foundation

A strong value proposition is more than just a marketing slogan; it's a core part of your business strategy. It guides your decisions, aligns your team, and helps you connect with the right customers. By clearly defining the value you offer, you give your business a better chance to grow over time.

Keeping your business finances just as clear and organised is the next step. With a real-time view of your cash flow and performance, you can make sure you're delivering on your promises. Get one month free to see how simple business management can be.

FAQs on value propositions

Here are some common questions small business owners have about value propositions.

How often should I update my value proposition?

Review your value proposition annually or whenever there's a significant change in your business or market. This could include launching a new product, facing new competitors, or shifting your target audience. The goal is to ensure it always reflects the current value you offer.

Can I have different value propositions for different customer segments?

Yes, it's a smart strategy. Tailoring your value proposition to different customer segments allows you to highlight the specific benefits that matter most to each group. While the core of your value should remain consistent, the messaging can be adapted to resonate more deeply with each audience.

How do I know if my value proposition is working?

The best measure is customer behaviour. Look for signs like improved conversion rates on your website, positive customer feedback, and an increase in sales. For example, BNZ pointed to acquiring over 100,000 new customers and being voted Canstar 2025 best bank for small business as proof of its effective strategy. You can also test different versions through A/B testing on your landing pages to see which one performs better.

What's the difference between a value proposition and a unique selling proposition?

A unique selling proposition (USP) is a specific, unique feature that sets your business apart from competitors, like 'the only cafe in town with a dog-friendly patio'. A value proposition is broader. It explains the overall value and bundle of benefits a customer receives from your product or service.