Small Business Dictionary

Value Proposition

An effective Value Proposition explains product benefits to a customer in order to persuade them to buy. It should reflect the needs and wants of a target customer as a more important message than product features. A Value Proposition may take into consideration the competitive landscape, the price of the product, and a customer's alternative to taking action. Examples of Value Propositions for small business owners could include "save time", "increase productivity", "improve employee morale", and "increase sales".