Crafting a Value Proposition that Speaks (and Sells).
No, it’s not just a tagline or a pitch line.
The value proposition of a startup is the foundation of every strategic decision, every customer interaction, and every message you bring to the market. A strong value proposition defines your purpose, differentiates you from competitors, and drives the direction of your business. Done well, it’s the single most powerful tool for aligning your team and attracting both customers and investors.
Understanding its impact and importance, we broke down the essentials of building a value proposition in this brief manual —touching on customer insights, message clarity, and real-world applications across product, marketing, and branding.
Why Your Value Proposition Matters
A value proposition clearly articulates why a customer should choose your product or service over others. It’s not about listing features—it’s about showing the unique value you bring to solve a customer’s problem in a way no one else can.
The applications of a strong value proposition go beyond marketing copy. Here’s how it orchestrates nearly every aspect of a startup’s identity and strategy:
Guiding Product Decisions: A well-defined value proposition provides a framework for product development. By keeping the customer’s needs front and center, your team can make strategic choices that consistently reinforce your value.
Shaping Marketing and Sales Content: Every blog post, social media update, email, and sales pitch should echo your value proposition. This consistency builds trust and recognition, helping customers immediately understand what you stand for and why you’re relevant to them.
Informing Employer Branding: A value proposition isn't just for customers. It also defines your startup's identity and mission, which is crucial for attracting talent. Employees are more engaged when they’re aligned with a clear, purposeful mission, and a strong value proposition helps you attract people who believe in what you’re building.
Supporting Investor Relations: A clear, focused value proposition communicates your startup’s potential in a way that appeals to investors, showing them that you understand the market, your customers, and what sets you apart.
A couple of examples to notice:
➡️ When hoper defined its value proposition as “transforming travel by making helicopter seats accessible for Greek island travel,” it became the guiding principle behind key decisions. This focus on accessibility led hoper to:
Design a streamlined booking process that allows travelers to book seats on demand, much like a traditional airline, rather than renting entire helicopters.
Create a transparent pricing structure to demystify helicopter travel and make it feel approachable to a wider audience.
Tailor marketing efforts to highlight convenience and ease, showcasing island travel as an affordable, time-saving option for locals and tourists alike.
➡️ In another case, Deesup set out to create “Europe’s ethical marketplace for luxury furniture resale.” This value proposition drove Deesup to:
Complement the peer-to-peer offering with a B2C model, allowing them to partner with furniture brands and target a broader market.
Emphasize product quality and sustainability in every customer interaction, building trust around the idea of premium, sustainable goods.
Develop customer education content through their white paper that highlights the environmental benefits of buying pre-owned luxury items, reinforcing their brand’s ethical mission and differentiating them from mass-market secondhand platforms.
How to Create a Value Proposition that Works
Creating a strong value proposition requires a mix of customer insight, strategic clarity, and sharp messaging. Here’s a structured approach to help you build one that resonates.
1. Identify Your Customer’s Core Needs
Understand the problem you’re solving from the customer’s perspective. Talk to people in your target market and dig deep to uncover real pain points. This isn’t about assumptions—it’s about finding out exactly what challenges your audience faces and what they care about.
➡️ Example: Imagine a banking app focused on gig economy workers. Through research, you might find that gig workers need fast, easy access to funds after completing a job, rather than waiting for traditional payment cycles. This insight tells you that your product should address the need for quick, flexible access to earnings, ideally within hours rather than days.
2. Define Your Solution Clearly and Specifically
Describe what your product or service does in clear, specific terms. Avoid vague language; instead, articulate exactly how you solve the identified pain points. Be concise but precise about the value you deliver.
➡️ Example: Consider a deep-tech AI company with a tool that optimizes supply chain logistics for manufacturing. Instead of simply saying, “We optimize supply chains,” a clear statement might be: “Our AI-powered platform analyzes and predicts inventory needs in real-time, reducing stockouts and overstock by up to 30%.” This statement is precise and directly addresses the main pain points for manufacturers: managing inventory and minimizing costs.
3. Highlight What Makes You Unique
This is where you differentiate. What are the key features or qualities that set you apart from competitors? Focus on your unique value drivers—whether it’s a proprietary technology, an innovative approach, or a specific customer experience—that cannot be easily replicated.
➡️ Example: Say you’re building a sustainable fashion brand. While many brands might claim eco-friendly practices, you could emphasize unique differentiators, such as “Zero-waste design using 100% recycled materials” or “A circular shopping model that allows customers to return used items for discounts.” These differentiators give customers clear, specific reasons to choose your brand over others and align with their values around sustainability.
4. Keep the Language Clear and Direct
Avoid jargon and complex terminology. Your value proposition should be immediately understandable to anyone, even those outside your industry. Simplicity drives clarity, making it easier for customers to see why your solution matters.
➡️ Example: Imagine a health-tech platform designed to help patients manage chronic illnesses. Instead of using technical language like “integrated telemedicine and data-driven care,” keep it simple: “Manage your health from home with easy access to doctors, medication reminders, and health tracking—all in one app.” This clear, benefit-oriented statement lets customers immediately understand how it helps them.
5. Refine Through Feedback
A value proposition isn’t static. Test it with your target audience, gather feedback, and refine as needed. Customer validation is crucial to ensure that your message resonates and aligns with the needs and expectations of your audience.
➡️ Example: Consider an ed-tech startup offering skill-building programs. You might draft a value proposition focused on “flexible, on-demand courses for working professionals.” However, after gathering feedback, you find that users are more interested in certifications. Based on this, you might refine the message to emphasize “certified, career-focused courses you can complete at your own pace.”
A few exercises you can run with your core team to answer these questions:
Your Practical Template for Crafting a Value Proposition
To help structure your value proposition, use the following template:
For [target customer]
Who [statement of the need or problem]
(Product/service name) is [short description of what it does]
That [statement of benefit]
➡️Example: For small businesses who struggle with scheduling and shift planning, Blend is an employee scheduling app that reduces errors and improves communication, saving time for managers and employees alike.
This template ensures your value proposition is customer-focused, clearly highlights the problem, and explains exactly how you address it.
Common Pitfalls to Avoid
To craft a value proposition that truly resonates, avoid these common mistakes:
Listing features without clear benefits: Customers want to know how your product will impact their lives, not just what it does. Focus on benefits over features.
Trying to please everyone: Your value proposition should be specific to your target audience. Broad statements weaken the impact.
Failing to adapt over time: Your value proposition should evolve with the market, customer needs, and your business growth.
Putting Your Value Proposition to Work
Once you’ve crafted a strong value proposition, it should become the backbone of your communication strategy. Integrate it consistently across your website, social media, sales pitches, and investor presentations. A clear, focused message becomes a powerful tool for engagement, trust, and loyalty.
Remember: the purpose of your value proposition is to convey, in the simplest terms, why your solution is valuable and how it’s different. When effectively communicated, it’s the difference between blending in and standing out.
How BORRN Can Help
Crafting a clear, compelling value proposition is both art and science, and getting it right can make or break a startup. At BORRN, we collaborate with founders to refine and define their unique value propositions, ensuring that the message not only resonates with customers but aligns with business goals and market positioning. We bring a strategic approach to help startups communicate their core value with clarity and impact.