in Articles

How To Craft a Lean, Mean Value Proposition For Your Startup

EasyPeasy Value PropositionMark Twain said "I didn't have time to write a short letter, so I wrote a long one instead." Similar, every business model needs a clear and compelling proposition - a short description of the value or benefit your product creates for a specific customer segment.

In his seminal tech marketing book, Crossing the Chasm, Geoff Moore provided a very useful template for making and baking your elevator test. But as I needed an even more high-concept positioning–one that goes with your social media accounts, your tweets or Google ads–I turned to successful web startups for help. What I found is something that I call the VAD technique.

Guy Kawasaki is a true master of crafting value propositions or mantras, which he prefer over corporate-ish mission statements. On his blog I found the following killer examples:

I like these. They are short, simple, playful and to-the-point. Guy is not afraid of polarizing people. Its premise is that you will rather take a sniper than shotgun approach when targeting your customers with value propositions. Guy seems to put a verb or call-to-action first, followed by the application and a differentiator.

That is [verb; application; differentiator], or VAD if you like.

Another interesting value proposition is that of Xobni. By highlighting "Drowning in Email?", Xobni immediately makes you aware of your problem and invokes some kind of thank-god-I'm-not-alone-feeling. Instead of being everything to everyone, Xobni makes it clear that it offers you an Outlook sidebar plug-in. Following, Xobni highlights it main features and user perceived values - "searching your inbox and finding information about your contacts fast and easy".

Now, consider EasyPeasy, a software startup that I helped found. Its current value propostions are:

  • EasyPeasy: an open source cloud OS for netbooks.
  • EasyPeasy: Linux for the rest of us.

By using the VAD technique we came up with the following high-concept pitches:

  • EasyPeasy: Rediscover your netbook.
  • EasyPeasy: Make your netbook a lean, mean surfing machine.
  • EasyPeasy: Run any web app inside the operating system

I admit being scared of polarizing main audiences within open source and Linux. Yet, VAD helped us drill down customer segments and perceived user value. From a positioning point of view these value propositions polarize new netbook users, and focus on solving the problem of current netbook users that feel pain with their pre-installed OS.

If you would like a more in-depth approach to value propositions and business models, I recommend reading chapter 2 in Business Model Generation by Alexander Osterwalder and Yves Pigneur.

Feel free to slaughter or embrace the high-level EasyPeasy pitch, or throw away the shotgun, load your rifle and share your own VAD-style value proposition.

Did you like this post? Please, feel free to subscribe or follow me on Twitter

Write a Comment

Comment

  1. Great post, I really like these value propositions. What about bringing some emotions to the first one? Like; EasyPeasy, an open source OS for your netbook

  2. Thanks Tor. Indeed, “You” and “Your” are typically good instruments to prompt for personal engagement. I redefined the prevailing example to “EasyPeasy. Rediscover your netbook”. Its underlying – EasyPeasy replaces the current, and excuse my ignorance, often boring and limited operating system that ships with your netbook 🙂

  3. Great article: as the matter you are talking about, you were able to summarize many things in little space!

    Kudos and keep up the good work°°/!

    P.S.: was the first easy peasy that bad? Not being a native speaker I fear I miss something…

    • Thanks, I appreciate it.

      I believe that it is a matter of continuous improvement, and perhaps most importantly that the value proposition reflects the business model, including what you offer to whom.

      Cheers, Tor

  4. Insightful small article. I used V-A-D to actually create a ad campaign. Interesting thought: how about a hybrid of the two models you suggested? P-A-D: Problem, Application, Differentiator?

    • Thanks for sharing. I believe that putting the Problem statement first is even better aligned with importance of problem identification in startup marketing. At the same time, using a verb provides call-to-action. It’d require some copywriting skills to create such a short hybrid statement 🙂