Glossary: Value Proposition

by Today's Eggspert

Last updated on November 24th, 2017

A value proposition is what you guarantee or promise to deliver to your consumers in exchange for their money.

It’s also the main reason people choose one product over another. If it’s done right, it can give you a competitive edge and help you grow your business.

The value proposition is vital to conversion optimization because it allows you to build a perception of the value that a user will get. So, if you test it, these few sentences might have a significant impact on your conversion rate and sales.

What the value proposition does when done right:

  • It pinpoints the consumer that the product is for (makes your offer relevant to the target audience)
  • It promises a particular benefit to the buyer (makes your offer specific)
  • It relates how and why your product/service is better than the competition’s (makes your offer unique and better)

Does your business need a value proposition?

Every business needs a value proposition.


Because it gives you the ability to communicate the value of your product or service in a succinct way and persuade potential buyers to consider it.

How to create your value proposition:

An ideal value proposition is a unique solution to your customer’s pain. There is no right or wrong way to create your value proposition, but it should include the specific language your ideal customer is using.

It should also offer a unique benefit that no one in your marketplace can replicate.

You can’t use jargon that your ideal buyer won’t understand. Your language must speak to them on their level of sophistication and awareness.

To have the right mindset for creating a value proposition, it helps to imagine a scale:


On one side is your potential buyer’s money. They want to buy a product/service from some provider (including your business), and they are evaluating different options. On the other side of the scale is your value proposition. All the benefits of your product/service (when communicated through your value proposition) add up and make your total value.

In this equation, the more the scale is weighted in your favor, the better the chance you have of winning a customer.

Let’s take another example.

If you shop with Zappos, you know that you’ll pay more for the same pair of shoes than in other stores. However, when you think about their 24/7 customer service, free shipping (and returns), easy-to-use website, helpful customer reviews – it all adds up and makes you decide to buy from them. You consider that the value of the Zappos experience is worth more than the money you are giving to Zappos.

What a value proposition consists of:

  1. Headline. The most important benefit you’re offering in 1 short sentence. It can call out the customer or their pain. It should grab attention.
  2. Sub headline or a 2-3 sentence paragraph. A more detailed explanation of your product/service, the customers it serves, and how it’s better than other solutions on the marketplace.
  3. The 3-4 main features and benefits your product/service offers.
  4. Visuals. An image is worth a thousand words. It can show your product or a photo of a person who is similar to your ideal customer.

You can verify whether your current value proposition does its job if it answers the following questions:

  • Does your product or service show what product or service your company is offering?
  • What is the benefit of using it?
  • Who is your target customer for this product or service?
  • What makes your offering unique and different?

Here are some examples of good value propositions. Let’s break them down and analyze them:



Why it’s good:

  • The main headline solves the issue that many people who use taxis are having: The car they get isn’t the one they like. So Uber promises: Always the ride you want.
  • It implies simplicity of use: Tap a button, get a ride. It also goes on to describe the exact experience the user will have with the app: Choose your ride and set your location…
  • It eliminates the pain of calling taxi companies for a ride and scheduling. A benefit like 24/7 availability enhances the offering.
  • It makes you feel like your opinion matters and gives a feeling of transparency between drivers and passengers.
  • The image of a smiling woman in a luxury car reinforces the positive experience.



Make a note of it

  • The main benefit: Remember everything. Everyone has forgotten something in their life or lost one of their ideas because they didn’t write it down. Evernote solves this problem with a simple solution.
  • Have it everywhere. Making your notes on your smartphone and being able to instantly access them on other devices is a good benefit for everyone who owns several devices.
  • Find anything fast. Trying to find something in a pile of notes is a challenge. Evernote makes it easier for you.
  • Share with anyone. Sharing your notes and files even on the go is important for anyone with a dynamic lifestyle. So they highlighted this feature and benefit.



The main headline swiftly says what the platform is about. It adds some humor and shows that it’s a highly flexible platform for everyone.

Your mission control

  • Here Shopify goes on to describe the main benefits of the platform in short statements. For anyone who is considering different platforms, this should be more than enough information to persuade them to switch over to Shopify.
  • Get straight to growing your business – this statement tells users exactly what they want to hear. Shopify promises to sort out all the nitty-gritty and technical tasks while the user focuses on their business’s growth.

When you put together your value proposition, there can be a lot of features, benefits, and advantages of your product that you want to add.

So how do you prioritize them?

Your main point of added value should be extremely important to your ideal customer. So for Uber (example above), the main value proposition would be:

“Always the ride you want”

You need to conduct surveys and ask your buyers, “What is your main challenge/problem/pain when it comes to (this product or service)?”

About the Author: Alex Fedotoff takes 6-7 figure e-commerce and SaaS companies to 8 figures using a combination of consumer psychology, conversion optimization, and Facebook advertising. Currently, he is the Founder of AF Media, one of the most sought-after Facebook advertising agencies in the world. You can connect with him on Facebook.



Get updates on new articles, webinars and other opportunities:

Today’s Eggspert

This article was written by today's Daily Eggspert. If you would like to contribute as an Eggspert, please reach out to us here.


Comment Policy

Please join the conversation! We like long and thoughtful communication.
Abrupt comments and gibberish will not be approved. Please, only use your real name, not your business name or keywords. We rarely allow links in your comment.
Finally, please use your favorite personal social media profile for the website field.


Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  1. Alina says:
    April 19, 2017 at 10:51 am

    What an awesome analysis of the one factor that can make or break an ad campaign and distinguish a company from it’s competitors

    Very much like how Domino’s Pizza dominated the market with their usp many years ago

    Great article Alex

    • Alex says:
      April 21, 2017 at 5:12 am

      Thank you.

      Yes, exactly Alina.

      It’s all about winning the battle in a customer’s mind with an irresistible offer.

Show Me My Heatmap

Ah, @CrazyEgg I really do love you! So useful evaluating how users are interacting with all aspects of our redesign

Mike Halligan


What makes people leave your website?