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As you craft your value proposition, it is important to keep in mind several factors that will make it effective and meaningful. It is also important to keep in mind the common mistakes often made when designing a value proposition.

Easily Understood

It is essential that your value proposition be clear and concise. Not just to you, but to your audience. It should be written using words and terms your client or prospect instantly understand. It is important that they grasp the meaning of each word. If it is to be powerful, it should not digress. It must remain on point, or it will become diluted and detract from the desired message.

Compelling

Your Value Proposition must stand on its own to capture your audience's attention. It must not only be relevant, but it must also target your client's highest priorities. It conveys your superior understanding of your client in a way that matches your offering with their needs. Your value proposition should appeal to them in a way that is compelling and draws them to you.

Sets You Apart From Your Competition

A powerful value proposition should differentiate you from your competitors. If you sound the same as everybody else, your client will have difficulty determining the deciding factor between you and the competition. Since your business design follows your value proposition, a differentiated value proposition is important in designing a business that drives your competitive advantages.

As you analyze your competition, pay attention to how your competition articulates their value proposition. Keep in mind a generic value proposition does not differentiate you from your competitors and does not convey a superior understanding of your clients needs.

Avoid Common Pitfalls

As you create and review value propositions, you will frequently come across many pitfalls that detract from their effectiveness. One common pitfall is to mistake features and capabilities with the resulting value and experience that makes the difference your client or prospect is looking for.

Remember that the value proposition is about the difference your client experiences from your client's point of view as a result of your service offering, and NOT about your attributes, features or capabilities. Violating this principal leads to ineffective value propositions that translate into misaligned businesses that are out of tune with the market.