What are the key elements of a value proposition?

"Delivering the knowledge you need to succeed."

The key elements of a value proposition are relevancy, benefit, energy, and risk.

  1. Relevancy is how well the value proposition aligns with the needs of the customer.
  2. Benefit is the positive outcome your product or service will have on the customer.
  3. Energy is the amount of effort your customer will or will not need to get results.
  4. Risk is finding the best way to make your offer as risk-free as possible.

How to use these elements of a value proposition?

The best way to use the elements is by crafting a value proposition that targets each element.

Each element addresses key obligations that your product or service must fulfill for customers.

If you can appeal to your target audience and overcome these objections sooner in the customer journey, you’ll be able to increase conversions and create a more successful business.

Can a value proposition lose you customers if not used correctly?

A value proposition that is not used correctly can lose you customers.

If your target audience does not see your value proposition’s relevancy, benefit, energy, or risk, they are less likely to convert.

It is essential to test different value propositions with your target audience to find the right fit for your business.

Also, if you close them but don’t back up your claims with a great product or service, you will lose that customer and damage your brand’s reputation.

A value proposition should be a powerful synopsis of what your business does for potential customers, so make sure it is clear, concise, and accurate.

If you stay honest and to the point, you will be better off in the long run.

Don’t try to use your value proposition as a hard sell or make false claims that you can’t back up.

Be transparent, and give your customers the information they need to make an informed decision about doing business with you.

Template for using the elements of a value proposition

It can be challenging trying to figure out how to craft a value proposition that hits on all four cylinders.

Here’s a quick template you can use to make sure your value proposition has the key elements customers are looking for:

We help (relevancy/ target customer) get (benefits) by only (energy) without (risk).

An example of this would be:

“We help busy moms get in shape by only working out for 30 minutes a day without going to the gym.”


“We help startups get more exposure by writing valuable articles without charging until you are satisfied.”

The best value propositions are ones that can be easily understood and related to by the customer.

Don’t try to be too clever or sales-y with your language–just focus on being clear and concise.

Additional articles on this topic

What is a value proposition for a financial advisor?

How do financial planners add value?

What are the three types of value propositions?

What is another word for a value proposition?