6 Steps to Writing a Compelling Customer Value Proposition

A strong customer value proposition (CVP) is often the key to winning over potential buyers. But it’s more than a catchy tagline or jingle that gets stuck in their head. A CVP is a clear, concise statement that explains why they should choose your product or service.

While every company needs a CVP, it can take time to get yours just right. It must show prospects that you really understand their pain points — and how your solution can solve them — all in a single statement. Learn how to create a CVP that stands out from the competition and catches your target customer’s attention so you can start making more sales.

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What is a customer value proposition (CVP)?

A customer value proposition (CVP) is a statement that summarizes why a potential customer should choose your product or service over the competition. It highlights your product’s specific benefits and value and conveys why it’s the best available solution for your prospects’ needs or challenges.

CVPs should not be confused with unique selling propositions (USPs). A USP focuses on what makes your product or service unique in the marketplace, while a CVP focuses on its value to the customer.

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The importance of having a strong CVP

A clearly defined CVP addresses your customers’ needs in a way that resonates with them. And as a salesperson, this means clearly understanding the problems your customers face.

The State of Sales report found that 86% of business buyers say they’re more likely to buy from a company when their goals are understood. But 59% say that most salespeople don’t take the time to do this. A strong customer value proposition sets you apart by clearly communicating to your target customer why your product or service is the best solution for them — and how it can alleviate their pain points to help them meet their goals.

In my experience, today’s buyers are ahead of the curve. They’ve done their research, they know all about your product or service, and they’ve looked at the competition. By the time they reach out to you, they’re ready for a solution. So, when you meet with a potential customer, you must be prepared to sell them on your product or service — and position yourself as a trusted advisor.

Customers want to know one thing when they come to you: “How can you help me?” So, when I coach my clients, I tell them that a CVP must answer three questions about their brand: “Why me? Why my product? And why now?”

You will have a distinct advantage if you know exactly what your value proposition is. Sellers usually don’t have a lot of time to spend with potential customers, and a strong CVP helps you quickly explain exactly why your product or service is the best solution for them.

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Key components of an effective customer value proposition

There are three major elements of an effective customer value proposition:

  1. Operational excellence: How is your product or service delivered to customers? Consider things like efficiency, reliability, and competitive pricing. For example, an international fast-food chain that offers a consistent and cost-effective dining experience — whether in Des Moines, Iowa or Tokyo, Japan — is attractive to those looking for food familiarity at a good price.
  2. Product leadership: How innovative are your products and services? Emphasize things like design and technology that may appeal to your customer and their needs. For example, a tech company that generates so much buzz for its latest smartphone that people are lined up in front of its stores on launch day creates excitement and demand for a new product.
  3. Customer intimacy: How do you deliver the best customer experience? Showing potential buyers how they’ll be supported during and after their purchase is an important part of your CVP because it communicates that you value them. For example, a department store that always accepts returns — regardless of date of purchase — can signal to prospects that you’re willing to go the extra mile to make things right.

Understand your target customer’s pain points

One of the most critical parts of an effective CVP is understanding your target customer’s pain points. Without this component, it’s impossible to resonate with them. Consider this example:

I had a client who worked for a telecom company, and the trucking industry was one of her target clients. She was struggling with hitting her sales quotas, and looking at her email open rate, it wasn’t hard to understand why: Only a small fraction (2%–3%) of her potential clients opened her emails, and her conversion rate was even lower.

I suggested that she do some research to see what was actually happening in the trucking industry. It turns out that after the COVID-19 pandemic, rampant theft had become the norm for trucking companies. It was endemic. Truck drivers would pull up to a truck stop, go inside, get a cup of coffee and come back out. The truck would be there, but their payload would be gone. As a result, the supply chain was struggling.

Armed with this knowledge, my client changed her value proposition. She changed the subject line of her emails to, “Find your payloads.” Her email open rate shot up to 14%–16%. By the next quarter, she was the top salesperson for this telecom in the entire U.S. — and changing her value proposition helped her get there.

When crafting your CVP, the most important thing to consider is how you can solve your customers’ problems — that’s the key.

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How to write a compelling customer value proposition

A CVP should be concise. Legendary entrepreneur Steve Blank created a simple formula to distill a CVP down to its essential message: “We help (X) do (Y) by doing (Z).”

To write a compelling CVP, you must understand your audience. A buyer persona describes your ideal customer, outlining key demographic and psychological traits. You can create a buyer persona by using data, research, and interviews. Doing so will help you understand your target customers’ demographics, pain points, needs, and desires.

Ask yourself, “What problems are my customers facing right now?” Your biggest job when creating a CVP is demonstrating how your product or service can make your customers’ problems go away.

Next, brainstorm ways to communicate the value your product or service brings to your customers. You may find it helpful to create a value proposition diagram. This is a map of the benefits of your product or service intersected with your customers’ desires. It helps illustrate what you offer and why customers will buy it.

Then, create an outline using these six steps:

  1. Identify your target customer: Pinpoint your ideal customer, their motivations, and why they’re a good product-market fit.
  2. Determine their pain points: Identify your customers’ unique challenges or problems.
  3. Describe your solution: Explain how your product or service can solve their problem. Solution selling and value selling techniques can be helpful in this step.
  4. Highlight the benefits: Focus on the primary benefits that will matter most to your audience.
  5. Stand out from the competition: Clearly state what makes your solution better or different from others.
  6. Provide proof: Use testimonials, case studies, or sales data to validate your claims.

After you’ve created an outline, distill your message down to the essentials. Craft a clear and concise statement, summarizing everything into a compelling message that’s easy to understand.

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Examples of customer value propositions

Here’s an example of a ride-share app company’s CVP:

Reliable rides, built-in safety, fee transparency.

It may seem simple, but it took a while to get there. Let’s break down the ride-share company’s CVP process:

1. Identify your target customer: Urban professionals and travelers seeking convenient, reliable, and affordable transportation. They value time, flexibility, and convenience and seek a solution that fits into their busy lifestyles.

2. Determine their pain points:

  • Inconsistent transportation: Customers often face unreliable or unavailable public transportation.
  • Cost concerns: Traditional taxi services or driving and parking their own cars can be expensive.
  • Safety and transparency: Pricing, safety, and accountability of traditional transportation methods can vary.

3. Describe your solution: We provide on-demand transportation that allows customers to schedule rides through a mobile app in minutes. We offer flexible, fast, and reliable transportation at competitive prices. With real-time GPS tracking, transparent pricing, and driver reviews, we deliver a safe and consistent experience for riders.

4. Highlight the benefits:

  • Convenience: Book a ride anywhere, anytime, with just a few taps on your phone.
  • Affordability: Competitive, upfront pricing ensures there are no surprises.
  • Safety: Background-checked drivers, real-time tracking, and driver rating systems ensure peace of mind.
  • Flexibility: Ride options vary to match your budget or comfort level, from economy to premium.

5. Stand out from the competition: Unlike traditional taxi services or car rentals, our app delivers fast service, transparent pricing, and a digital-first experience. Our reliable technology, robust driver vetting, and 24/7 availability make it more convenient and safer than other available options.

6. Provide proof: Our millions of satisfied customers around the globe highlight the value of the service. Studies show that our app reduces traffic congestion and offers more affordable, efficient transportation in many cities. Customer testimonials repeatedly emphasize the convenience and reliability they experience.

All of this was distilled into a single statement, quickly communicating how the company solves their potential customers’ problems.

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Other CVP examples

Here are a few more examples of CVPs different companies may use for their products:

  • A digital messaging tool for businesses: Simplifying workplace communication for higher productivity.
  • A video conferencing platform: Build strong connections no matter where you are.
  • An AI-powered smartphone: Your personal assistant just got smarter.
  • A big box discount retailer: Save money. Live better.
  • A cloud storage service: Say ‘goodbye’ to a cluttered desktop and ‘hello’ to peace of mind.

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Communicating your customer value proposition effectively

Great product messaging is simple, differentiated, memorable, and inspires action. Crafting a compelling customer value proposition is no different. It’s similar to an elevator pitch in that it’s a quick and effective way to communicate to your audience what you offer and why they need it.

To ensure your CVP is accessible to everyone in your target audience, while getting your message across, write it for an eighth grade reading level. It should be clear, concise, and jargon free.

Other points to keep in mind:

  • Talk to your audience: Tailor your message to the specific needs and pain points of your target customers.
  • Use clear, simple language: Your message should be easy to understand and get to the point quickly.
  • Demonstrate what makes you different: Focus on your product’s or service’s unique benefits. Emphasize its potential value.
  • Use multiple channels: Reach out to customers where they are. Share your value proposition across your website, social media, ads, email marketing, and sales pitches.
  • Be consistent: Make sure that everyone in your company is on the same page. To strengthen brand recognition and reinforce your value proposition, it’s essential that your messaging is consistent across all platforms, people, and materials.

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Fewer words, more sales

It may seem strange to spend hours crafting something that may end up being fewer than a dozen words. But the time you invest in writing an effective CVP is well worth the effort. A clear and concise statement that explains why your product or service is the best solution for your potential customers’ specific challenges can help win new business, expand your market, and close more sales.

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