23 February 2021

A Useful Definition of a Value Proposition

This is my go-to definition of a value proposition:

How an organization creates value for its customers. It is not the product per se but rather the combination of customer problems solved and customer value created. They exist only in relation to a specific customer segment.

Let’s break that down a little.

What is value?

Value is the relative worth of one thing vs another. When we say that something is valued by a customer it means it is worth relatively more to that customer than another thing.

The best way to get to bottom of this relative worth is using jobs-to-be-done.

What are jobs?

The things customers are trying to get done. There are three major categories of jobs: functional, social, emotional. Your customers hire your product to help them complete their jobs.

Some jobs are more important than others, which is one reason why some products and services are more valuable than others.

What are products and services?

The things offered to a customer as part of a value proposition.

What is a customer segment?

The group of people, users or organizations for whom we create value. Customers do not need to be fee paying.

Master your value proposition

I host regular workshops helping startups discover, validate and build out their value propositions.

Starting from jobs-to-be-done, I coach startups through the five steps needed to truly understand their customer and launch a successful product.

Click here to sign-up for my next free introduction to value propositions.

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