A value proposition is
- How a product or service benefits the target customers
- A statement describing those benefits
Value is created by solving customer problems or satisfying their wants & needs.
To understand a product’s value proposition, write User stories for the customer. User stories look at a product through the lens of the user to clarify how it creates value for the user.
Value can be delivered in many ways, such as:
- Newness (the first iPhone)
- Improvement (software update)
- Design/usability (nest thermostat that is easier to use)
- Social status (Gucci, Prada, Rolex, etc.)
- Convenience (lower friction experience, better location, etc.)
- Novel experiences, (visiting a zoo or circus, attending a magic show, etc.)