Value proposition refers to a comprehensive cost-value analysis of what a company can provide to its clients. This is an internal document on which all other communication can be based.
A value proposition can be used to explain to a client why the company’s products or services are the best option. It can also be used when giving information to potential partners, in the event of a joint venture.
Value propositions can also be created for specific internal purposes. For example, a specific department can create a value proposition to make a business case when requesting funding. A value proposition can also be created for companies who would like to recruit and retain employees.
For a company to build its own value proposition, it is first important to do some market research and find out who the potential clients are. After that, the company can present the product and its benefits, including information on how the company can carry out its promises. It should also highlight that which differentiates it from other similar products in the market. Good value propositions are specific and give a clear picture of why and how the product can provide the highest value to the client.
