What is a value proposition?

In business and marketing, a value proposition is a statement summarizing the customer segment, competitor targets and the core differentiation of one’s product from the offerings of competitors. In Crossing the Chasm, Geoffrey Moore writes, "Positioning is the single largest influence on the buying decision." Value propositions are often used to describe value added. Moore’s value proposition should answer the questions: "Why should I buy this product or service?" as well as "Why should I do anything at all." It is a clear and specific statement about the tangible benefits of an offering. 

A value proposition is a clear statement of the tangible results a customer gets from using your products or services. The more specific your value proposition is, the better.  People don’t buy good services.  They buy help for their problems.  It is important for you to have a strong value proposition:

  • to differentiate yourself from the competition
  • to identify for your prospects why you are the best person to solve their problems
  • to increase the quantity and quality of your leads
  • to gain market share in your targeted market
  • to assist you in enhancing your tools to close more business
  • to improve your efficiency and productivity
  • to answer the question, "Why use a Realtor."