Value Proposition

The value proposition is a unique selling point of a product or service. It is a fundamental component of the business model which represents the core reason as to why a customer chooses one product or service over another. A value proposition is a clear statement which explains how a product or service solves the problems of the customer or improves their situation which is referred to as relevance or delivers any specific benefit which can be referred to as quantified value and tell the ideal customer as to why they should buy from us and not from the competitor. 

The value proposition of Uber is a great example for understanding the market needs and customer convenience. Uber offers a reliable, affordable and convenient transportation service which can be accessed through a user-friendly mobile app. The central focus of their value proposition is on providing quick and easy access to rides with transparent pricing and the ability to track the ride in real time. Through this they aim to solve the common problems associated with traditional taxi services such as availability, fare negotiation, and payment methods. The cornerstone of Uber’s success lies in how effectively it identified and addressed these common pain points of the customers and offered a solution that significantly improved the user’s transportation experience. 

At the very essence, the value proposition is the promise of value that is to be delivered. It is the primary reason as to why a prospective customer should buy from you.

Read more: Business Model: An Introduction