Imagine you’re trying to sell something – it could be a product, a service, or even an idea. To be successful, you need to make sure what you’re offering is something people actually want or need. That’s where “proposing value” comes in.
It’s all about understanding your potential customers:
- What are they trying to achieve? What tasks are they trying to complete, problems are they trying to solve, or needs are they trying to fulfill?
- What are their frustrations and challenges? What makes it difficult for them to achieve their goals? What are they worried about?
- What would make them happy? What kind of positive outcomes are they hoping for? What would make their lives easier or better?
Once you understand these things, you can then think about how what you’re offering can:
- Solve their problems and ease their frustrations.
- Help them achieve their goals and fulfill their needs.
- Provide benefits that make them happy.
“Proposing value” simply means clearly explaining how your offer does these things. It’s about showing your potential customers why they should choose you because you understand their needs and can provide a solution that truly benefits them.
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A “Value Proposition Canvas” framework helps businesses define their unique value in the market. Below is an elaboration and expansion of each component:
Contents
1. FOR (Target Customer)
- Clearly identify your ideal customer or market segment.
- Specify demographics (age, gender, income, etc.), psychographics (lifestyle, values), or firmographics (industry, size) if targeting businesses.
- Example: “For eco-conscious millennials aged 25–35 living in urban areas.”
2. WHO (Statement of Need/Opportunity)
- Define the problem, challenge, or opportunity your customers face.
- Articulate this in their perspective: What do they wish to achieve, avoid, or improve?
- Example: “Who want affordable and sustainable alternatives to fast fashion.”
3. OUR (Product/Service Category)
- Describe your offering (product, service, or solution) and its category.
- Keep it concise and relevant to solving the stated need.
- Example: “Our ethically produced clothing line.”
4. THAT (Statement of Benefit)
- Highlight the primary value or result your solution provides.
- Focus on measurable outcomes or qualitative benefits customers will experience.
- Example: “That combines stylish designs with eco-friendly materials to reduce environmental impact.”
5. UNLIKE (Closest Competitor)
- Identify your key competitors or alternative solutions available to customers.
- Mention what makes your offering stand out.
- Example: “Unlike traditional fast-fashion brands that prioritize cost over sustainability.”
6. OUR OFFER (Primary Differentiator)
- Define what uniquely positions your product/service in the market.
- Consider unique features, business models, partnerships, or branding that competitors can’t replicate.
- Example: “Our offer guarantees transparency in supply chains, fair wages for workers, and carbon-neutral operations.”
Here’s an expanded tabular version of the value proposition framework with 10 examples for each point:
| Point | Examples |
|---|---|
| FOR | 1. Eco-conscious millennials aged 25–35 living in urban areas |
| 2. Small business owners seeking affordable marketing tools | |
| 3. Parents of children under 12 looking for educational toys | |
| 4. Remote workers needing productivity-enhancing software | |
| 5. Travelers who prioritize unique cultural experiences | |
| 6. Health-conscious individuals wanting organic meal plans | |
| 7. Gamers looking for immersive virtual reality headsets | |
| 8. College students needing affordable yet durable laptops | |
| 9. Elderly individuals requiring simple and reliable tech gadgets | |
| 10. Pet owners searching for high-quality, sustainable pet food | |
| WHO | 1. Who want affordable and sustainable alternatives to fast fashion |
| 2. Who struggle with managing multiple social media accounts | |
| 3. Who are concerned about their children’s screen time | |
| 4. Who face difficulty staying focused and organized while working remotely | |
| 5. Who are tired of cookie-cutter travel itineraries | |
| 6. Who lack time to prepare healthy meals | |
| 7. Who want a gaming experience that feels real | |
| 8. Who need laptops capable of handling their coursework and entertainment needs | |
| 9. Who feel overwhelmed by complex smartphones | |
| 10. Who are committed to providing the best nutrition for their pets | |
| OUR | 1. Our ethically produced clothing line |
| 2. Our all-in-one social media management platform | |
| 3. Our interactive STEM-based educational toys | |
| 4. Our project management and focus app | |
| 5. Our custom travel planning service | |
| 6. Our weekly subscription for pre-prepared organic meals | |
| 7. Our next-gen VR gaming headset | |
| 8. Our lightweight and budget-friendly laptops | |
| 9. Our user-friendly senior-friendly smartphones | |
| 10. Our premium organic and sustainable pet food | |
| THAT | 1. That combines stylish designs with eco-friendly materials |
| 2. That simplifies posting and monitoring across all platforms | |
| 3. That sparks creativity and critical thinking | |
| 4. That improves focus and minimizes distractions | |
| 5. That delivers one-of-a-kind experiences curated by local experts | |
| 6. That ensures healthy eating without the hassle | |
| 7. That offers ultra-high resolution and realistic gameplay | |
| 8. That balances performance, battery life, and affordability | |
| 9. That provides easy navigation and clear communication | |
| 10. That prioritizes ethical sourcing and optimal pet health | |
| UNLIKE | 1. Unlike traditional fast-fashion brands that prioritize cost over sustainability |
| 2. Unlike disjointed tools that require separate logins and subscriptions | |
| 3. Unlike generic toys that fail to engage children in meaningful learning | |
| 4. Unlike basic to-do list apps that lack advanced collaboration features | |
| 5. Unlike standardized travel packages offered by large travel agencies | |
| 6. Unlike meal services that rely on frozen or processed ingredients | |
| 7. Unlike outdated or low-resolution VR systems | |
| 8. Unlike expensive laptops that exceed student budgets | |
| 9. Unlike overly complicated smartphones with unnecessary features | |
| 10. Unlike mainstream pet food brands that overlook environmental concerns | |
| OUR OFFER | 1. Our offer guarantees transparency in supply chains, fair wages for workers, and carbon-neutral operations |
| 2. Our offer streamlines social media management into a single dashboard | |
| 3. Our offer features durable, safe, and endlessly engaging toy designs | |
| 4. Our offer combines task prioritization, focus techniques, and collaborative features | |
| 5. Our offer ensures itineraries tailored to each traveler’s interests and preferences | |
| 6. Our offer provides chef-prepared, locally-sourced organic meals | |
| 7. Our offer ensures lightweight designs, superior comfort, and unparalleled visuals | |
| 8. Our offer provides extensive warranties, free accessories, and student discounts | |
| 9. Our offer simplifies tech for seniors with large icons, simple interfaces, and built-in tutorials | |
| 10. Our offer combines eco-friendly packaging, veterinarian-recommended recipes, and charitable donations to animal welfare organizations. |
Here is the value proposition framework rewritten as complete sentences in ordered sequence, with the points clearly labeled and bolded:
- For: Eco-conscious millennials aged 25–35 living in urban areas who want affordable and sustainable alternatives to fast fashion. Our ethically produced clothing line that combines stylish designs with eco-friendly materials to reduce environmental impact, unlike traditional fast-fashion brands that prioritize cost over sustainability. Our offer guarantees transparency in supply chains, fair wages for workers, and carbon-neutral operations.
- For: Small business owners who struggle with managing multiple social media accounts. Our all-in-one social media management platform that simplifies posting and monitoring across all platforms, unlike disjointed tools that require separate logins and subscriptions. Our offer streamlines social media management into a single dashboard.
- For: Parents of children under 12 who are concerned about their children’s screen time. Our interactive STEM-based educational toys that spark creativity and critical thinking, unlike generic toys that fail to engage children in meaningful learning. Our offer features durable, safe, and endlessly engaging toy designs.
- For: Remote workers who face difficulty staying focused and organized while working remotely. Our project management and focus app that improves focus and minimizes distractions, unlike basic to-do list apps that lack advanced collaboration features. Our offer combines task prioritization, focus techniques, and collaborative features.
- For: Travelers who are tired of cookie-cutter travel itineraries. Our custom travel planning service that delivers one-of-a-kind experiences curated by local experts, unlike standardized travel packages offered by large travel agencies. Our offer ensures itineraries tailored to each traveler’s interests and preferences.
- For: Health-conscious individuals who lack time to prepare healthy meals. Our weekly subscription for pre-prepared organic meals that ensures healthy eating without the hassle, unlike meal services that rely on frozen or processed ingredients. Our offer provides chef-prepared, locally-sourced organic meals.
- For: Gamers who want a gaming experience that feels real. Our next-gen VR gaming headset that offers ultra-high resolution and realistic gameplay, unlike outdated or low-resolution VR systems. Our offer ensures lightweight designs, superior comfort, and unparalleled visuals.
- For: College students who need laptops capable of handling their coursework and entertainment needs. Our lightweight and budget-friendly laptops that balance performance, battery life, and affordability, unlike expensive laptops that exceed student budgets. Our offer provides extensive warranties, free accessories, and student discounts.
- For: Elderly individuals who feel overwhelmed by complex smartphones. Our user-friendly senior-friendly smartphones that provide easy navigation and clear communication, unlike overly complicated smartphones with unnecessary features. Our offer simplifies tech for seniors with large icons, simple interfaces, and built-in tutorials.
- For: Pet owners who are committed to providing the best nutrition for their pets. Our premium organic and sustainable pet food that prioritizes ethical sourcing and optimal pet health, unlike mainstream pet food brands that overlook environmental concerns. Our offer combines eco-friendly packaging, veterinarian-recommended recipes, and charitable donations to animal welfare organizations.
