How do you define and communicate your product’s value proposition?

Mayank Mathur/ November, 2017

Description

Mayank Mathur, Lead of the Value Engineering Team, Startup Focus Program, SAP explains how you can define and communicate your product’s value proposition.

Video Transcript

How do you define and communicate your product’s value proposition?

The value proposition in our opinion is the number one factor that determines the startup’s success, right, whether it is pitching to stakeholders, VCs or just your prospects. If you don’t have a very clear value proposition, most likely they’re going to skip you and move on to the next shiny thing on their agenda for the day. If I were to give one piece of advice to startups about the value proposition it is to identify and define your value proposition statement in a way that is understandable to the stakeholders. It’s probably the number one factor that’s going to determine if the prospects are going to take a second look at you as a startup or not.

The lesser unknown company, the better value proposition you need to have, and you can look at the examples of companies in and around you, where startups like Uber that nobody knew about. They had to articulate their value proposition in a way that was understandable to the masses, and here we are not talking about technology, people who understand technology but it could be just to the average person out there who needs to know what this Uber service is all about. So hence, looking at companies like Uber and Apple’s iPhone is a great example where it is a mass consumer products that people learn to use in the value proposition as a subtle statement that is somewhat embedded in the product and the service itself and not in any PowerPoint.

In a nutshell, the value proposition in our opinion are three main aspects: one is, how does your product or service improve the life of your customer, that is how relevant it is. The second is what is the unique differentiator of your product or solution of the competing products. And thirdly, how fast you can bring this product or service to market compared to what is out there. In summary, the best value proposition in our opinion in one word is clarity. Depending on how clear your message is would determine how far you’d go in articulating your value to your stakeholders.

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QUICK INFO

  • Mayank Mathur, SAP Startup Focus
  • November, 2017
  • 2:30
  • Marketing & Sales

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