A simple formula for defining your value proposition

What does your company do?

Ask 10 people this question. I bet at least half will struggle to give you a clear, concise response.

Hereโ€™s a simple framework I use to define a โ€œvalue propositionโ€:
๐™‘๐™–๐™ก๐™ช๐™š ๐™ฅ๐™ง๐™ค๐™ฅ = ๐™˜๐™–๐™ฅ๐™–๐™—๐™ž๐™ก๐™ž๐™ฉ๐™ž๐™š๐™จ + ๐™ฉ๐™–๐™ง๐™œ๐™š๐™ฉ ๐™–๐™ช๐™™๐™ž๐™š๐™ฃ๐™˜๐™š + ๐™—๐™š๐™ฃ๐™š๐™›๐™ž๐™ฉ๐™จ.

Where:
๐—–๐—ฎ๐—ฝ๐—ฎ๐—ฏ๐—ถ๐—น๐—ถ๐˜๐—ถ๐—ฒ๐˜€ = Functionality of your product (what it does).
๐—ง๐—ฎ๐—ฟ๐—ด๐—ฒ๐˜ ๐—ฎ๐˜‚๐—ฑ๐—ถ๐—ฒ๐—ป๐—ฐ๐—ฒ = Who you are trying to talk to and attract.
๐—•๐—ฒ๐—ป๐—ฒ๐—ณ๐—ถ๐˜๐˜€ = How a user's life is different/better after using your product.

In other words, a solid response to my above question would be:
๐™ˆ๐™ฎ ๐™ฅ๐™ง๐™ค๐™™๐™ช๐™˜๐™ฉ ๐™™๐™ค๐™š๐™จ [๐™˜๐™–๐™ฅ๐™–๐™—๐™ž๐™ก๐™ž๐™ฉ๐™ฎ] ๐™จ๐™ค ๐™ฉ๐™๐™–๐™ฉ [๐™ฉ๐™–๐™ง๐™œ๐™š๐™ฉ ๐™–๐™ช๐™™๐™ž๐™š๐™ฃ๐™˜๐™š] ๐™˜๐™–๐™ฃ ๐™–๐™˜๐™๐™ž๐™š๐™ซ๐™š [๐™—๐™š๐™ฃ๐™š๐™›๐™ž๐™ฉ].

Now, youโ€™re probably thinking to yourself - this is a good start, but my product has multiple capabilities, several target personas, and many benefits!

Youโ€™re right.

This framework is just a starting point. The next step is to understand what I call your product's "benefit ripple effect" which you can read more about here.