“Value Proposition” is a phrase that you’ll hear marketing types throw around with some degree of regularity.

The reason is, it’s at the core of everything your business does.  Put simply, if you have a good, well defined value proposition, everything else will come easily.  If you don’t, well, you’ll that your efforts are constantly being held back by an invisible, yet perceptible, ‘headwind”.

So, what is a ‘value proposition’?

Simply put, it helps to answer the following question in the prospects mind: “Why should I buy from you, and not your competition?”

In a lot of cases we see, even if a business intuitively “knows” their own value proposition, they’ve done a poor job of defining it for the prospect, and an even worse job of articulating it.  If the prospect doesn’t instantly ‘get it’, the chances of converting the prospect into a sale diminish significantly.

So what are the characteristics of a well articulated value propostion?

Appeals to a relevant and intense problem instantly

While to most this should be self evident, while raising money for small entrepreneurial companies in silicon valley, I can’t tell you how many times some very smart people were spending time building “better mousetraps” without a clear idea of customer in mind.

We used to call these, “solutions in search of a problem”.

While it’s true that occasionally these turn into products, this is an example of marketing “into the wind”.

Instantly communicates that you understand the problem and you have the solution

Ideally, through your value proposition, and the material that supports it, your prospect can see that you understand his problem.  Marketers call this ‘empathy’.  One very common technique is in a personal appeal that should look very familiar.  It goes something like, “I used to be just like you….”

The reason this advertising cliche looks so familiar is because variations of it continue to work to this day.

The second part is that you have the solution to their problem.  The cliche continues, “then I started drinking super magic muscle builder x” (or whatever).

Ideally, it quickly becomes clear that not only do you empathize with their problem, but you are offering the magic bullet that will make their pain go away.

Translate that solution into an obvious and immediate benefit to the customer

There are times that this can be inferred or is obvious.  There are many other  times when it’s desirable or necessary to spell it out for the prospect.

Some other guidelines for a well articulated value proposition

Quantifiable

Third party verified

idea or concept is not already owned in the customer’s mind by another competitor