How To Create A Great Value Proposition

In a world where every customer is bombarded with options, clarity is currency.
That’s why a strong value proposition isn’t a nice-to-have — it’s the difference between being noticed and being ignored.

A clear value proposition tells your customers three things instantly:

1. What you do.
2. Why it matters to them.
3. Why they should choose you over everyone else.

It’s your company’s sharpest weapon in a noisy market.

Why Most Value Propositions Fail

Too many companies mistake slogans for strategy.
They talk about quality, service, or innovation — the same words their competitors use.

As Alexander Osterwalder says in Value Proposition Design, the best value propositions are rooted in facts, not opinions. They’re tested, measurable, and impossible for competitors to copy.

Great value propositions do one thing exceptionally well:
They solve specific jobs, pains, or gains that your customers deeply care about.

The 10 Characteristics of Great Value Propositions

Osterwalder’s research identifies ten shared traits. The best value propositions:

1. Are embedded in a strong business model.
2. Focus on a few major pain relievers and gain creators.
3. Target jobs or pains that matter to a large group (or a small group willing to pay a premium).
4. Align with how customers measure success.
5. Solve the most significant problems first.
6. Clearly differentiate from competitors.
7. Address functional, emotional, and social needs.
8. Substantially outperform alternatives.
9. Are difficult to copy.
10. Focus on unmet needs.

Simple, but rarely practiced.

Real-World Example: HILTI’s “Right Tool at the Right Time”

HILTI, a global power-tool manufacturer, hit a growth ceiling despite great products. Instead of chasing more sales, they reframed their offer around customer pain.

Small construction firms were losing money every time a job was delayed because of broken or missing tools. HILTI’s answer: Tool Fleet Management — a service that provides:

• No-cost repair or replacement.
• No upfront purchase cost.
• Real-time inventory management.

Their new value proposition wasn’t about tools — it was about peace of mind.
Contractors no longer paid for ownership; they paid for uptime and reliability.

How to Test Your Value Proposition

Osterwalder’s advice: “Facts beat opinions.”

Talk to customers. Ask what they actually do — not what they say.

Use the Value Proposition Canvas to map:

• Customer Jobs: What they’re trying to get done.
• Pains: What frustrates them.
• Gains: What success looks like for them.

Then match those insights with your products, services, and pain relievers.
Observe behaviour — because behaviour never lies.

Final Thought

A superior product without a strong value proposition will lose to an average product that customers understand.

Or, as Osterwalder puts it:

“An inferior product with a better value proposition and business model beats a better product with a weaker one.”

Want to sharpen your company’s value proposition?

Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.

Your value proposition isn’t a tagline.
It’s the bridge between your strategy and your customer’s wallet.