In brief: A value proposition explains whom an offer helps, in what situation, what outcome it delivers and why to choose it instead of available alternatives.
How I use a value proposition in practice
With the term value proposition, I first determine which decision it should make more precise. I write down the current state, intended customer, available alternatives and company constraints. Then I look for one change that can be made and verified. Theory is useful only when it helps choose a priority, an owner and something we will consciously not do now.
What to watch out for
Beware of trying to encompass all customers and all channels. A value proposition should help select something and reject something. Without boundaries, it produces general communication that anyone can use. Another mistake is changing direction after every weaker week instead of checking the original hypothesis.
Questions for decision-making
- Which specific decision should the term make more precise?
- What supports our claim, and what is still only a hypothesis?
- What will we do differently because of this decision?
- Who owns the change, and when will we assess its impact?