How to Develop a Compelling Value Proposition, Step by Step

A value proposition should be a cornerstone of B2B messaging. Unfortunately, as is all too common with key B2B artefacts, the term is often poorly defined and used inconsistently, leading to less than impressive results. More than a decade ago, SiriusDecisions (now Forrester) published a definition for value propositions that included the components of an audience, a need, an assertion, an outcome and a distinction. Here’s the example I first saw with that definition:

B2B Value Proposition

“As the world’s largest professional network on the internet, LinkedIn is the best place to find, engage and hire passive and high-quality active candidates. LinkedIn Talent Solutions makes recruiting at scale easier than ever before and gives recruiters a competitive edge in the war for talent.”

We’ve built on that definition to create a sequence and supporting graphic that works step-by-step to overcome several of the obstacles we’ve observed in creating a solid value prop. Some will observe that the island graphic is an homage to the excellent depiction of ‘Marketingland’ produced by students of Prof. Mark Ritson. Here’s the sequence:

Start by describing the specific audience segment(s) your value proposition will address. The audience description in a value proposition is extremely brief and will only consist of a word or two. If you are still identifying your audience, you are not ready for a value proposition. The article An Introduction to Where to Play/How to Win on this site might prove helpful.

We use SPIN as a needs analysis that bridges the audience with the need. Accordingly, we start with the Situation to isolate the day-to-day life and goals of the audience. Time after time, when asking representatives from sales, marketing, or product teams to describe the audience’s situation, we got a list of problems! The Problem space is actually a poor starting point, as it loses some of the critical buying context, such as what the audience is actually trying to achieve.

Next, we move on to the Problems, which is more properly Problems and Opportunities, before describing the Implications of both to ensure both the problems and opportunities really matter.

The final part of the Discovery part of the process is to define the Needs developed by this part of the sequence. Needs should be expressed as a ‘Need To’ or a ‘Need For’.  

Buyers Want Outcomes

Next, describe how you will meet those needs and express them as outcomes. Outcomes are also frequently poorly understood, and we’ve found that starting with a need, describing how that need will be met and then framing it as an outcome is helpful in nailing the outcomes down.

Capabilities Deliver Outcomes

The next step is to articulate the capabilities (not features) that enable you to deliver those outcomes. Capabilities cluster features together to describe the elements of your product or service that help the user accomplish their goals or solve their problems using the product. Whilst this element does not feature in the definition of a value proposition we are using, we’ve found this step extremely helpful in identifying potential distinctions and helping to shape the assertion.

Distinction – Implicit or Explicit

Identify the outcomes and capabilities that make you distinctive and set your solution apart from the competition.   Distinctiveness makes for easy identification and recognition based on a particular characteristic or set of characteristics.  Distinctiveness makes a brand or product stand out from the crowd.  Distinctiveness is different to differentiation, which relates to the act or process of distinguishing between two or more things or people, usually part of a choice with a specific purpose in mind. In comparison to distinctiveness, differentiation is less immediate and more deliberate.   Avoid overdoing it, and especially using the self-serving word ‘only’. One of the best ways to create distinctiveness in value propositions is through the combination of the other ‘ingredients’. This form of distinction is illustrated in the examples.

The Assertion

Now, you are in a position to make the assertion – a confident statement that encapsulates your value. The first sentence of the original value proposition for Uber is probably one of the most confident assertions ever made. “Uber is the smartest way to get around. One tap and a car comes directly to you. Your driver knows exactly where to go. And payment is completely cashless.” Clearly, few companies can make such a bold assertion and the examples that follow show more measured examples.

Finally, bring all the elements together into a clear, cohesive statement. The examples below are all regularly cited for their clarity and conciseness.

    B2B Value Proposition Examples

    Value Proposition: “HubSpot offers growing businesses an all-in-one platform to attract, engage, and delight customers, facilitating seamless alignment between marketing, sales, and service teams.”

    • (Audience): Growing businesses.
    • (Need): To attract, engage, and delight customers.
    • (Assertion): HubSpot offers an all-in-one platform that meets the needs and delivers the outcome
    • (Outcome): Seamless alignment between marketing, sales, and service teams.
    • (Distinction): No specific distinction, but inferred from the combination

    Value Proposition: “Mailchimp empowers small business marketers to create, send, and analyse email campaigns effortlessly, helping to build brand loyalty and drive sales.”

    • (Audience): Small business marketers.
    • (Need): To create, send, and analyse email campaigns.
    • (Assertion): Mailchimp empowers marketers to do this.
    • (Outcome): Build brand loyalty and drive sales.
    • (Distinction): Creating, sending, and analysing campaigns effortlessly.

    Value Proposition: “Zoom makes virtual meetings and webinars simple and reliable, allowing teams to stay connected from anywhere.”

    • (Audience): Teams.
    • (Need): To stay connected from anywhere.
    • (Assertion): Zoom makes virtual meetings and webinars simple and reliable.
    • (Outcome): Teams stay connected from anywhere.
    • (Distinction): Simplicity and reliability.