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Glossary

Value proposition

A clear statement of the value an offer provides to a particular customer and why they would choose it.

Why it matters

A list of features explains what an offer includes. A value proposition connects those features to something a particular customer needs to achieve or wants to avoid, so the reason to consider the offer is clear.

Start with the customer’s situation rather than a broad claim such as better service. Explain the useful outcome, how the offer helps and why the promise is credible. Different audiences may value different parts of the same offer.

A simple example

A bicycle repair shop could explore a pickup-and-return service for local commuters who find it difficult to bring a bike to the shop during opening hours.

Connect the feature to a need

Pickup and return are service features. The possible value is getting the repair arranged without making a separate journey to the shop.

Ask how commuters currently handle repairs and whether arranging the visit is actually a problem for them.

Make the promise deliverable

The shop would need clear collection areas, booking windows, repair terms and pricing before presenting the service as an available offer.

Test whether customers value the convenience enough to pay for it and whether the shop can deliver it sustainably.

This is a hypothetical offer, not an existing client service or a proven customer preference. Do not promise savings, turnaround times or other outcomes that the business cannot support.

Value proposition and positioning

A value proposition explains the value a particular offer creates for a customer. Positioning places that offer in the customer’s choice of alternatives and establishes how you want it to be understood.

They should support each other, but neither is just a slogan. A well-written statement is still a hypothesis until customer evidence and the delivered experience support the promise.

Before making the promise

  • Which customer, situation and desired outcome does this offer address?
  • Why would that customer choose it over an alternative or doing nothing?
  • What evidence and delivery capability support the value you are promising?