How to Write a Clear but Powerful Value Proposition for Your Company (+ Life Science Examples)
If you have a business or are planning on launching one, you likely have given a lot of thought to your offering and target audience.
But if you haven’t yet articulated your value proposition, you’re missing out on a huge opportunity to explain to the customer what you offer – and why they need what you’re selling.
A value proposition is a short statement that clearly and concisely states what your business promises to deliver. It also explains why your customers should buy from you.
Not only is the value proposition part of any good business plan or pitch, it also serves as the main message on your website and other marketing materials.
What a Value Proposition Isn’t
Generally, a value proposition is less visionary and more tactical than a vision or mission statement. It’s also different from a tagline or slogan (which are forms of marketing communications tied to a brand.)
Worth mentioning is that a value proposition doesn’t (necessarily) have to do with an organization’s core values or value system. That’s a different topic, though of course a company’s value prop can incorporate core values for strategic or competitive reasons.
Signs of an Ineffective Value Proposition
The problem is, value propositions often fall flat or are stuffed with unnecessary terms and hyperbole – especially in complex fields like the life sciences.
Many value propositions are ineffective because they are:
Too general
Filled with industry jargon
Heavy on the business-speak
Not unique
Bland or predictable
Not in the target customer’s language
Too complicated to understand
The Anatomy of a Good Value Proposition
Then what makes a good value proposition, particularly in scientific fields?
An effective value proposition should:
Be clear and concise
Be easy to understand in a short amount of time
Communicate the value/benefit the customer will get from doing business with you
Explain the advantage of your business over competitors
Be read and understood both internally and outside your organization
It’s important to remember that you might have a separate (and different) value proppsition for your company vs. the product or service you offer. This is fine, just know the difference and when to use or not use each version.
How to Structure Your Value Proposition
Now that we’re clear on the elements of a good value proposition, it’s time to write yours.
Value propositions can take many different formats. There templates and examples online from various business types and organizations large and small.
As a rule, it’s better to have something simple that you will use rather than going back to the drawing board and re-working a longwinded, jargon-riddled statement.
One of the most basic examples is from entrepreneurship expert Steve Blank, whose template is:
We help (X) do (Y) by doing (Z).
Or another version could be:
For (audience) looking for (benefit/outcome), we provide (product/service/technology) to (solution).
An example of a value proposition that merges these formats, while having an aspirational tone is Zoom:
“In an increasingly remote age, Zoom helps you keep your life moving.”
Or to use a life science example, here is one for a fictious organization offering a B2B health technology:
For chiropractors looking for reliable patient compliance tracking, we provide a digital app to let patients easily log exercises and habits.
And here’s another for a faux service-based business serving life science clientele:
We help contract manufacturers close more deals by building better relationships.
Using Your Value Proposition Statement
Once you have written your value proposition, be sure to:
Test it with your target audience, either by asking top customers or running an A/B test of a landing page on your website (to measure click-throughs or leads generated)
Communicate it with your team
Use it in your business decision-making
Know that you can change it as your business evolves, or if you find it needs further refining after testing it
Conclusion
Creating a value proposition statement that is both powerful and clear is essential to attracting and converting customers.
By using the above best practices, you’ll be able to better articulate what it is you do, exactly – and the value your business promises to deliver (and why your customers should buy from you).
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Sosna + Co is a boutique, outsourced business development partner for the life sciences. From M&A advisory and licensing deals with Fortune 500 companies to uncovering the potential of savvy, new start-ups, the principal is simple: we work meticulously to uncover new opportunities that grow your business. Contact us today to learn more.