Value proposition refers to the key features and aspects of a product or service that give the company or brand a competitive edge over others. It, therefore, serves as an attraction for customers and gives them a reason to choose a particular company’s product offering. We’ll use a few value proposition examples to explain the concept in greater detail.
What is Value Proposition?
A value proposition gives your prospects of doing business with you over your competitors and highlighting it in marketing campaigns helps in adding value to the brand. In a nutshell, it combines relevancy, quantified value, and unique differentiation.
Your product’s ability to solve a customer’s problem to improve his/her experience addresses the concept of relevancy, being able to provide benefits refer to qualified value, while the product’s competitive advantage denotes the unique differentiation.
Value Proposition Examples
Writing a good value proposition is like any other skill and can become the very statement for your brand or service’s success.
Below are a few of the best examples of value proposition:
1. Netflix: ‘Watch Anywhere. Cancel anytime’
Netflix delights its customers and employs the right marketing strategy in doing so. It addresses the customer need in these four simple words, ‘Watch Anywhere. Cancel Anytime’ which one can do in simple steps, all that is needed is internet connectivity.
Do you know how Netflix makes money?
2. Skype: “The Ultimate Network Business’
Skype creates a great user experience by connecting people continents apart over a video chat and much of it is free of cost. Therefore, as the value proposition suggests, it being able to connect people the world over is the unified value and addresses the question of relevancy for people who need to connect with peers for business meetings or with friends and family over long distances.
This along with the unique features serves as a competitive advantage over other such offerings that may be geographically limited or restricted to certain features only.
3. Uber: ‘The Smartest Way to Get Around’
Uber quite subtly tells its users how hailing a traditional taxi could be a hassle over its service which is not just simple but superior over such an option. The Uber convenience is embedded in its value proposition.
All that is required is a tap and the driver is available for you who knows his way around regarding where you want to go and the payment is completely cashless.
This is reinforced in the message on Uber’s homepage that says, ‘Your day belongs to you’.
4. Apple iPhone: ‘The Experience is the Product’
Apple literally has a cult following when it comes to brand loyalty, there are consumers who cannot think of any other brand but Apple which has created a solid customer base for the company. The strong positioning has been attributed to Steve Jobs who led the company to its success over the years.
It won’t be a wrong statement when you’d say there’s nothing quite the Apple’s flagship device because it offers a very unique experience. Apple states that a mobile phone ‘should be more than a collection of features’ despite what a smartphone is supposed to be.
Similarly, the brand simplifies the complex issue of encryption into language that is easily understood by users and its hassle free as well. Apple knew that it couldn’t break free from the clutter to distinguish itself from the already crowded market, but it did exactly that by focusing on its unique features and IOS, and most importantly through highlighting the value proposition in the form of a great user experience, product design, and aesthetics.
Vimeo, as you may know, has very well positioned itself as a more advanced and perhaps more refined version of Youtube. When you upload content on Vimeo, it definitely is something worth the eyeballs.
Although it achieved late traction, it did succeed in its positioning and strategy. It provides superior video infrastructure and hence a better HD embeddable player for bloggers. Vimeo’s value proposition was directed towards producers thereby coming in direct competition with Youtube.
Thus, it aimed to acquire those producers who planned to create a sustainable collection of videos.
Did These Value Proposition Examples Help?
In conclusion, these value proposition examples illustrate that good value propositions entail the following:
- The ability of your product or offering to be able to solve the customer’s problem through its key features
- The benefit that it offers
- The competitive advantage that you can offer so that the customer prefers your product over your competitors