Value Proposition

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Description of Value Proposition. Explanation.


Definition Value Proposition. Description.

A (Customer) Value Proposition is a marketing statement by a firm that summarizes how it can provide value for a prospective customer. In other words: why a consumer should buy its product or use its service. It is the sum total of benefits a customer is promised to receive in return for the customer's associated payment (or other value transfer).

A sound value proposition is clear and concise and appeals to the customer's strongest decision-making drivers. Also, it should convince potential customers that the particular product or service will add more value than other similar offerings by other firms.

A Value Proposition is a key element of a Business Model.

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Compare with: Customer Satisfaction Model  |  Unique Selling Proposition  |  SERVQUAL  |  Positioning  |  Relationship Marketing  |  Customer Relationship Management  |  Competitive Advantage

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