A compelling value proposition - or value prop - is the difference between closing a deal and losing a profitable opportunity. But what is it, exactly - and what is its role in sales?
What is a Value Proposition?
A value proposition is a clear statement that explains why your product or service is suited to your target audience.
It highlights how your offering can solve a problem and is a promise of value. A successful value proposition should be persuasive, unique, and specific to your company.
Why are Value Propositions Important?
Getting a customer’s attention can be one of the biggest hurdles in sales. This is why value propositions are so important. They help pique and maintain potential customers’ interest by answering, “What’s in it for me?”.
For this to work, it’s important for a value prop to be good. A powerful proposition can be powerful enough to overcome weak marketing and weak sales. It’s a gamechanger.
The Importance of Value Propositions in Sales
A value proposition is the backbone of your sales pitch. It's the core message you want to convey at every touchpoint, from cold outreach emails to detailed product demos. When your sales team has a clear and impactful VP, it provides:
- Consistent messaging
- Enhanced brand credibility
- Greater confidence throughout the sales process
- Increased chances of closing a sale
3 Examples of a Strong SaaS Value Proposition
Here are 3 classic examples of powerful SaaS value propositions. By tailoring product, marketing, and sales around these, the organizations using them profited massively.
Value prop - "Where work happens. Whatever work means for you, Slack brings all the pieces and people you need together so you can actually get things done."
Why it works: It addresses the pain point of fragmented communication and promises a more efficient way to work.
Value prop - "A home for all your work. Dropbox brings your files together, in one central place. They’re easy to find and safely synced across all your devices—so you can access them anytime, anywhere."
Why it works: It targets the issue of disorganization, promising a centralized and safe online storage solution.
Value prop - "All-in-one inbound marketing software. Everything you need to launch effective marketing campaigns that make people interested in your business and happy to be your customer."
Why it works: HubSpot positions itself as a comprehensive tool for inbound marketing, created for businesses looking to attract and delight customers.
Unique Selling Proposition vs. Value Proposition vs Elevator Pitch
There is a lot of overlap between 3 concepts: Unique Selling Proposition (USP), Value Proposition (VP), and Elevator Pitch.
- USP focuses on one unique quality or feature that sets your product or service apart from competitors. It answers the question, "What makes you unique?"
- VP is a broader concept. It highlights how your product or service addresses a customer's needs, the benefits it offers, and why it's the best choice.
- An elevator pitch is a concise, 30-second speech that summarizes your company's mission, what you do, and why it matters. It's a broader story, but will often coincide with a VP.