What Is a Value Proposition?

By Catherine Brock – Updated Dec 23, 2024 at 3:10 PM

Key Points

A compelling value proposition highlights how your product solves a customer problem.
Researching and understanding customer needs contributes to a persuasive value proposition.
Test and refine your value proposition based on internal and external feedback.

The value proposition is a foundational element of a company's go-to-market strategy. Learn the elements of a good value proposition and the steps for writing one below. We'll also cover how a value proposition differs from a mission statement and provide four compelling and inspiring examples.

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About the Author

Catherine grew up in Southern California wearing a lot of black and trying to perfect the art of sarcasm. Prior to joining The Fool as a contract writer, Catherine was climbing the corporate ladder in marketing roles and dabbling in too many side hustles. When she's not writing, she can be found riding a horse in the country or shopping online for clothes.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Catherine Brock has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Apple, and Shopify. The Motley Fool has a disclosure policy.

Value proposition vs. mission statement

A value proposition is not the same thing as a mission statement. The mission statement describes the company's purpose and values, while the value proposition focuses on why customers should buy the product.

To demonstrate, the e-commerce platform Shopify (NYSE:SHOP) describes its mission as "making commerce better for everyone." By comparison, the company's value proposition -- "the all-in-one commerce platform to start, run, and grow a business" -- describes the product and the problem it solves.

What Is a Value Proposition?

Key Points

Related investing topics

How AI Is Changing the Retail Industry

Investing in Social Media Stocks

Investing in Luxury Stocks

About the Author

Our Guides

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Understanding value propositions

Related investing topics

How to write a value proposition

Value proposition vs. mission statement

Value proposition examples