How to write a value proposition that sets you apart

Published Wednesday 5 November 2025

Table of contents

• What is a value proposition?
• Value proposition examples
• What is the function of a value proposition?
• How to write a value proposition
• Communicate your value proposition
• Using value propositions to grow your small business
• FAQs on value propositions

Key takeaways

• Focus on customer benefits rather than product features by explaining how your solution improves customers' lives and what measurable outcomes they can expect.

• Test your value proposition with existing customers and colleagues to gather feedback, then refine your message based on their input and market changes.

• Communicate your value proposition consistently across all customer touchpoints, including your website, marketing materials, social media, and sales presentations to reinforce your brand message.

• Use simple, clear language that your target audience understands immediately, avoiding jargon while addressing specific problems your customers face.

What is a value proposition?

A value proposition is a clear statement that explains the unique benefits your product or service provides to customers. It answers the question: "Why should customers choose you over competitors?"

Your value proposition serves as:

• The foundation of your marketing strategy
• A rallying point for employees around a shared mission
• The core message that drives all your advertising

What a value proposition isn't

A value proposition is just one tool among many marketing instruments: mission statement, slogan or tagline. It may have some points in common with a mission statement – but where a mission statement explains the reason your company exists, the value proposition is product or service oriented. It also differs from a slogan or tagline, which embodies a specific aspect of the business.

If 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.'

Value proposition examples

Use these examples to help you write your value proposition.

• For a local bakery: 'Enjoy fresh, artisan bread baked daily with locally sourced ingredients, bringing the best of the neighbourhood to your table.'
• For a freelance graphic designer: 'Get professional designs that help your small business look its best, without the agency price tag.'
• For an online clothing store: 'Find comfortable, stylish clothing made from sustainable materials, so you can look and feel good.'

What is the function of a value proposition?

The function of a value proposition is to clearly communicate why customers should choose your business over alternatives.

Your value proposition can be adapted for:

• Tailor your value proposition for different audiences
• Adjust your message for various channels, such as social media or direct sales
• Update your value proposition when you add features or face new competition

What makes a good value proposition?

A good value proposition includes these essential elements:

• Use simple language customers understand immediately
• Address a specific problem your audience faces
• Highlight what sets you apart from competitors
• Explain outcomes, not just features
• Reinforce your overall business identity and positioning

How to write a value proposition

Creating your value proposition involves understanding your customers, clarifying your unique benefits, and crafting a message that resonates. Here's how to build one that drives results:

1. Identify your target audience

Identify your target audience by researching who benefits most from your solution.

Steps to understand your audience:

• Survey existing customers to learn what problems you solve for them
• Identify their priorities – what matters most in their decision-making
• Document their language – how do they describe their challenges and your benefits

2. Clarify your unique selling points

Your unique selling points are the specific advantages that make customers choose you over alternatives.

Ways to identify what makes you different:

• Ask customers directly: "Why did you choose us over other options?"
• Consult your sales team: They hear customer concerns and objections daily
• Analyse competitor gaps: What do they lack that you provide?

3. Include the benefits to the customer, not features

Focus on benefits, not features by explaining how you improve customers' lives.

Structure your benefits this way:

• Problem: What challenge does your customer face?
• Solution: How does your product or service address it?
• Outcome: What measurable improvement do they experience?

Use specific numbers or timeframes to make your benefits more credible and persuasive.

4. Use value proposition templates

Value proposition templates provide proven frameworks for structuring your message.

Simple formula:"We help [target customer] achieve [desired outcome] by [unique method]."

Detailed template:"For [specific customer] who [specific need], our [product/service] is the [category] that [key benefit]."

Harvard Business School method:Answer these four questions:

• What does your brand offer?
• What job do customers hire your brand to do?
• Who competes for this same job?
• What sets your brand apart?

Use simple language your customers use. Show emotion if it fits your brand. Make sure your value proposition matches your brand identity and business plan.

If you need help, read the guide on writing a business plan or download a free business plan template.

5. Test and refine

Test your value proposition by sharing it with customers, colleagues or a mentor. Use their feedback to improve your message. Update your value proposition as your market changes.

Communicate your value proposition

Communicate your value proposition consistently across all customer touchpoints to reinforce your message and build recognition.

Customer-facing locations:

• Website homepage and product pages
• Marketing materials and brochures
• Social media profiles and advertising
• Sales presentations and proposals

Internal applications:

• Business plans and strategy documents
• Staff training materials and scripts
• Investor presentations and funding applications

You might change the wording for different audiences, but keep your central message consistent. This helps reinforce your brand and shows you are focused and trustworthy.

Using value propositions to grow your small business

A clear value proposition is more than a marketing statement. It helps you grow your business and reach key milestones, such as when your taxable turnover goes over £85,000 and you need to register for VAT. It guides your decisions, aligns your team, and helps you attract and keep the right customers. By focusing on your unique value, you can build a stronger brand and a more successful business.

Ready to get a clearer view of your business finances? Xero accounting software makes it easy to manage your books, so you can focus on running your business.

Start your free Xero trial today.

FAQs on value propositions

Here are answers to a few common questions about creating and using value propositions.

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

Think of a unique selling proposition (USP) as a key ingredient in your value proposition. A unique selling proposition is a specific, unique feature or benefit that sets you apart (like 'the only bakery in town using organic flour'). Your value proposition is the overall promise you make to customers, which often includes your unique selling proposition.

How long should a value proposition be?

It should be short and easy to understand – usually just a few sentences. The goal is for a potential customer to grasp the main benefit immediately. Avoid jargon and keep it concise.

Can I have different value propositions for different customer segments?

Yes, and it's often a smart strategy. If you serve different types of customers with different needs (for example, residential vs. commercial clients), tailoring your value proposition to each group can make your marketing much more effective.

What are common value proposition mistakes to avoid?

The most common mistakes are being too vague, focusing on product features instead of customer benefits, making claims you cannot back up, and copying your competitors. Always aim for clarity, focus on your customer, and be genuine.