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Value proposition: why should they choose you?
6 minutes · 9 steps · workout 5 of 5 in this module
What you'll be able to do
By the end of this workout, you'll be able to tell a weak value proposition from a strong one and write a one-sentence value proposition for your own brand that has proof and stands apart from competitors.
A first look: Value proposition: “why you?” in one sentence
A value proposition is the one-sentence reason a customer picks you over competitors. It has four parts: who (the target customer), what problem, what result, and why you (the difference or proof). It isn't a slogan. It doesn't have to sound pretty, it has to be clear. If a customer can say “this is for me, because…” within 3 seconds, your value proposition is working.
Example: Corner Coffee: “For commuters racing to catch the train: order in the app, and your coffee is ready at the station counter in 90 seconds.”
What this workout covers
- Value proposition: “why you?” in one sentence
- The competitor test
- Case: Green Garden's new headline
- Show proof, in your creative
- Case: A cheaper competitor next door
A question from this workout: A cheaper competitor next door
A chain studio just opened right next to Balance Pilates. Its monthly membership is 40% cheaper, but its classes have 20 people. At your studio, classes have 6 people, and most members are beginners. Trial class requests dropped 25% in the last two weeks.
- Your monthly membership
- $140
- Chain studio's monthly membership
- $84
- Class size (you / competitor)
- 6 / 20 people
What move do you recommend?
- Cut the price to $84 right away and start a price war
- Add yoga, Zumba, and a café, and become a center for everyone
- Sharpen the value proposition: “6-person classes for beginners, and the instructor corrects you one on one,” and offer a free trial class
- Run an ad that names the competitor and mocks its crowded classes
Pick your answer first, then open the reasoning below.
Show the answer and the reasoning
Answer: C. Sharpen the value proposition: “6-person classes for beginners, and the instructor corrects you one on one,” and offer a free trial class
The competitor wins on price, you win on attention. A 6-person class for beginners is something a 20-person class can't offer, so you put it front and center. Cutting the price by 40% is the most common panic move. Your revenue drops, and you still can't compete with the chain's cost advantage. An ad that insults a competitor by name also carries legal risk.
The other steps work the same way: you decide first, then see why each option is right or wrong.
How you practice here
- 3 short concept cards
- 1 multiple-choice question
- 2 campaign cases with real-looking numbers
- 1 put-in-order exercise
- 1 matching exercise
- 1 guided calculation
Part of the module: Target Audience and Value Proposition
No ad works until you know who you are selling to: personas, segmentation and a clear value proposition.
More workouts in this module
- Selling to "everyone" sells to no one
- Personas: picture one real person
- Listening to customers: reviews, surveys and search data
- Segmentation: splitting your audience into useful groups
Programs that include this workout