In business strategy, what term describes the customer benefit a company promises to deliver?

In business strategy, a value proposition describes the customer benefit a company promises to deliver.

It connects a product or service with a target customer’s problem, need, or desired outcome. A strong value proposition explains why the offering is useful and why the customer might choose it over alternatives. It is usually expressed in customer-focused language rather than as a list of internal company activities.

A value proposition is related to, but distinct from, a mission statement. A mission statement describes an organization’s purpose, while a value proposition focuses on the value offered to a specific customer group. It is also broader than a slogan, which is a short marketing phrase and may not fully explain the benefit.

Companies test value propositions through customer research, product experiments, and market feedback. The proposition can change when customer needs, competitors, or the company’s offering changes.