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What is Your Value Proposition?

What is your value proposition?

For companies doing business to business transactions this is the single most important question.  If you can’t explain–in three jargon-free sentences or less–why customers need your product, you do not have a value proposition. Without a need, there is no incentive for customers to pay. And without sales, you have no business. Period.


The Value Proposition checklist: What are your Value Propositions?  It’s important for customers to understand the value of an offering and its associated RETURN.


There are 3 general propositions:  Make Money, Save Money and Avoid Risk


Here are a few variations of the general propositions:


  1. Increased revenues or profitability
  2. Faster time to market
  3. Decreased Costs
  4. Improved Operational efficiency
  5. Integrating operations globally
  6. Enhancing customer loyalty
  7. Increased market share
  8. Decrease employee turnover
  9. Improved customer retention levels
  10. Increased competitive differentiation
  11. Faster response times
  12. Decreased Operations expenses
  13. Increased sales per customer
  14. Improved asset utilization
  15. Faster Collection
  16. Reduced Costs of Good sold
  17. Minimized risks
  18. Additional Revenue Streams
  19. Increased Market share
  20. Improved time to profitability
  21. Increased billable hours
  22. Reduced cycle time
  23. Increased inventory turns
  24. Reduced direct labor costs


To bring value the must be a return.  Once a value proposition can be delivered there should be associated Tangible and Intangible returns. For each value proposition describe the hard and soft return and any math to provide a monetary valuation of the return:



1) Increased revenues or profitability


Tangible Return:



Intangible Return:


2) Develop the calculation

Create the math then create the Return Calculator


3) Use these three rules when creating your value propositions, and you’ll discover the difference between preference and parity”

  1. Put it in context. What really gets customers interested is “hearing about clear, unique benefits that address their business needs. (not your products offer)

Sometimes this is called: What’s in IT for ME?

  1. Show it in contrast. “If your prospects … can’t see themselves eliminating challenges and positively changing their strategic agenda … you don’t have a value proposition. “Value lies in the contrast between the pain and the gain.”


  1. Prove it with corroboration. When you’re trying to get prospects to care enough to choose you, it’s important to create “proof points” to corroborate your solution on two levels:

First, develop points that will corroborate or “turn up the heat” on the problem (cite industry stats, for example).

Second, use proof points to “corroborate your claims to be able to solve the problem in a meaningful way” (think client success stories).


Franchise Marketing Systems is always willing to help create your value proposition.   ROI selling is an expertise we provide, and part of our channel expansion capabilities.


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