Developing an effective value proposition: Why it matters for business success
- georgiafinney
- 3 days ago
- 3 min read
By: Will Herman, Associate Director
Developing an effective value proposition
To understand why a value proposition matters, it is essential to understand what it is. And if that sounds blindingly obvious, there are a remarkable number of businesses which have muddled through, with varying degrees of success, either without a value proposition or making do with one that is poorly articulated or simply not grounded in some form of strategic truth.
What a value proposition is - and isn't
Like many conceptual assets, it is perhaps easier to begin by noting what a value proposition is not. It is not:
A catchy slogan or strapline
A clever metaphor or something simply to brighten up a pitch.
A list of features, services or technical specifications.
Instead, a value proposition is the single most important articulation of why a prospective customer should choose one business’ service or product, instead of their competitors’. And this can be a remarkably difficult thing to express concisely, with the kind of clarity that is essential to achieve any meaningful form of differentiation.
The risks of operating without a value proposition
Without a clear value proposition, organisations face two major risks:
Internal misalignment: Teams begin to move in different directions, pulling towards their own interpretations of the value their business offers.
External confusion: Messaging often becomes unclear at best, or simply generic. Marketing efforts lose relevance, and sales opportunities are lost, apparently without clear cause.
In short, critical differentiation is inadequately expressed if at all and the impact can be hugely detrimental to growth.
When to develop a value proposition
The ideal time to develop a value proposition is at the start of brand’s journey, when a business is founded or perhaps when a major product line is launched.
But in reality, many businesses only address the issue later, often after:
Periods of strong growth that then plateaus
Entering new markets
Often, recognition of the need for a clear proposition comes, when the most significant differentiator that remains is price.
A value proposition should never been static. It's a dynamic assest that evolves alongside shifting customer needs and changing market conditions.
How to create a value proposition that works
For many businesses, the most way to create a value proposition is through a focused workshop with a limited number of key personnel, often supported by an external consultant. Why? Because even the best can benefit from the objectivity that this approach brings, cutting through the subjective bias and internal nuances within any business, the politics of larger organisations and the often-engrained beliefs of those who know the business in detail. Remember, this isn’t about product quality, features or technical capabilities. It’s about giving prospective customers confidence in a message that is clear, credible and resonates with their needs.
The exact structure of a workshop will depend on the organisation and its challenges, but the underlying principles are consistent. The processes typically centres on empathy mapping, understanding target customers and establishing a clear ‘why’. It will examine the challenge the target customer has, what they think, feel and do as a result of that challenge, and what they need to know, like and trust to choose one business over another. And it will establish what that business really offers, what customers actually value and ensure consistency of external messaging by aligning business leaders.
A follow-up session may follow to develop the most effective expression of this proposition. The process can appear simple, but when completed effectively, it provides a strategic asset underpinning everything that follows. It will inform design briefs, guide a rebrand or growth following acquisition and merger, steer the messaging for new product launches, recruitment, and ultimately, drive sales.
To conclude
Developing an effective value proposition is not just an exercise - it's a fundamental step in defining your business's unique position in the market. Without it, differentiation disappears, opportunities are lost, and growth stalls. With it, businesses achieve clarity, alignment, and the confidence to connect with customers in ways that truly resonate.
