Let's dissect the DNA of truly exceptional value propositions, drawing inspiration from companies that aren't just disrupting industries, but reimagining them entirely.
1. Embedded in great business models
Great value propositions are the heartbeat of creating value for your customers. Just as important, they need to be embedded in innovative business models so you’re also creating value for the organization.
Look at Spotify: their promise of personalized music streaming isn't just a tagline—it's woven into every algorithm, playlist, and partnership they create. From their AI-driven discovery features to their podcast acquisitions, Spotify's entire ecosystem revolves around delivering on their core value proposition of personalized music streaming while considering how that value proposition shapes the whole business model through partnerships, key activities, and key resources.
2. Focus on jobs, pains, and gains that matter most to customers
When filling out a customer profile, it's common to end up with 40-50 jobs, pains, and gains for any customer segment. It is impossible to try and address all of them, rather prioritize the most important ones (we recommend top 3) and focus on those.
Gensler is a global architecture and design firm. By focusing on the acute market needs of housing shortages they came up with an office-to-residential conversion algorithm that dramatically expedites the assessment process for transforming empty offices into homes. Gensler isn't just offering a service—they're providing a lifeline to cities grappling with housing shortages and property owners facing vacant buildings.
3. Target unsatisfied jobs, unresolved pains, and unrealized gains
Innovation thrives in the gaps left by existing solutions. The most impactful value propositions identify and address unmet needs or desires in the market. They offer solutions to problems that customers have been struggling with or create new possibilities that customers didn't even know they wanted.
Novo Nordisk's exploration of semaglutide-based drugs beyond weight loss exemplifies this principle. By investigating applications for dementia, liver disease, and more, they're not just selling medication—they're pioneering holistic health solutions for previously underserved medical needs.
4. Target few jobs, pains, and gains, but do so extremely well
It's tempting to try and solve every problem, but the most effective value propositions are often focused. By concentrating on a select few jobs, pains, or gains, you can excel in those areas and become the go-to solution. This focused approach allows you to develop deep expertise in your chosen niche and be recognised as such.
KinetX's laser focus on deep-space navigation showcases the power of specialization. Their ability to guide spacecraft like OSIRIS-REx with pinpoint accuracy across billions of miles isn't just impressive—it's the specialized expertise that makes them indispensable to ambitious space missions.
5. Go beyond functional jobs and address emotional and social jobs
Customers rarely choose one value proposition over another because of the ‘one’ thing. It's usually a mixture of what they’re trying to get done, how it makes them feel, and how others perceive them. This is why we always recommend to go beyond the more obvious functional jobs and really understand the deeper emotional and social drivers of your customers.
The National Women's Soccer League (NWSL) doesn't just offer sports entertainment; they're crafting a movement. Creating events like Angel City FC's prom night theme is tapping into fans' desire for community, representation, and shared experiences that transcend the game itself.
6. Align with how customers measure success
Great value propositions start by understanding how customers define and measure their own success. Put yourself in your customers' shoes: What does a "job well done" look like to them? What metrics do they use to evaluate improvement or progress? By deeply empathising with your customers' perspective, you can design solutions that deliver results in terms that truly resonate. This might mean faster processes, cost savings, improved quality of life, or enhanced status – whatever success means in your customers' world. Remember, it's not about what you think is important, but what your customers perceive as valuable.
YouTube TV's growth strategy aligns perfectly with how modern viewers define a great TV experience. By offering features like multi-stream viewing and integrating exclusive content like NFL Sunday Ticket, they're not just providing channels—they're delivering on the promise of flexible, comprehensive entertainment that fits viewers' lives.
7. Focus on jobs, pains, and gains that many people have or some will pay a lot for
Successful value propositions target either a large market with a common need or a smaller, niche market with high willingness to pay. This approach ensures a viable and potentially lucrative customer base. Understanding the size of your market and the value customers place on your solution is crucial for building a sustainable business. Remember its just as important to create value for your organization too.
Canva's democratization of design tools addresses a widespread need for professional-looking visuals in an increasingly visual world. By making design accessible to everyone, they've tapped into a massive market of individuals and businesses willing to pay for the power to create polished graphics easily.
8. Differentiate from competition on factors customers care about
Great value propositions stand out from the competition by focusing on what truly matters to customers. They ask: What tasks are customers struggling with? What frustrations keep them up at night? What outcomes would make their lives significantly better? By understanding these jobs, pains, and gains from the customer's perspective, companies can identify meaningful ways to differentiate. This might mean solving a problem that no one else has addressed, making a common task much easier, or delivering results in a way that aligns perfectly with how customers define success. The key is to differentiate in areas that customers actually care about, creating a solution that makes them say, "Finally, someone gets what I need!"
Stripe's focus on simplifying online payments and financial infrastructure for businesses sets them apart in fintech. By continuously refining their API and expanding their suite of financial tools, they're not just processing payments—they're empowering businesses to operate more efficiently in the digital economy.
9. Outperform competition substantially on at least one dimension
While being generally competitive is important, truly great value propositions excel significantly in at least one key area. This could be superior performance, lower cost, greater convenience, or any other factor that customers value highly. This outstanding performance in a crucial dimension gives customers a clear reason to choose your solution over alternatives.
Zoom's rise to prominence during the pandemic wasn't just about being in the right place at the right time—it was about delivering superior video quality and ease of use when it mattered most. Their ability to handle massive user growth while maintaining performance showcased their technical superiority in a crowded field.
10. Difficult to copy
Lastly, great value propositions have a degree of defensibility. This could come from unique technology, strong brand loyalty, network effects, or other factors that make it challenging for competitors to replicate your offering. This difficulty in copying ensures that your competitive advantage is sustainable over time.
Beyond Meat's innovative approach to plant-based alternatives isn't just about creating vegetarian options—it's about replicating the taste and texture of meat so convincingly that it appeals to carnivores. Their extensive R&D and proprietary processes create a barrier to entry that keeps them at the forefront of the sustainable food movement.
In a business landscape where attention is the scarcest resource, these companies aren't just competing—they're redefining the game. Their value propositions aren't mere promises; they're the north stars guiding every decision, from product development to customer interaction.
As you craft your own value proposition, remember: in a world of noise, clarity is king. But in a world of clarity, it's the proposition that resonates on a deeper level—functionally, emotionally, and socially—that wears the crown.
