Value proposition

The concrete benefit a specific customer gets, and why it is better than their alternative.

Example

'Cut rota-building from three hours to ten minutes, without changing your payroll system.'

Important

A value proposition names the alternative. Without that comparison it is just a description of your product.

Related terms

  • Positioning — The place your product occupies in a customer's mind relative to the alternatives they are already considering.
  • Messaging — The specific words you use to express your positioning to a specific audience.
  • ICP (Ideal Customer Profile) — A precise description of the customer who gets the most value from your product and is easiest to reach, sell and keep.

Lessons that explain it

  • Buyer versus user in B2B — The person who uses it is often not the person who pays. Building only for the user gets you loved and unpaid. (10 min)
  • Jobs To Be Done — People do not buy products, they hire them to make progress in a situation. The frame that stops you building features nobody asked for. (10 min)
  • The pitch deck — Ten to twelve slides whose only job is to get the next meeting. Not to close the round. (12 min)
  • Positioning and messaging — Positioning is the place you occupy against the alternatives. Messaging is the words. Most startups get the second one wrong because they skipped the first. (12 min)

All 176 terms in the Founder glossary