Value proposition hierarchy

Build the hierarchy around the buyer's job. Start with the business need, place the offer within that need, and connect the product and use case to the feature that makes the outcome possible. A feature earns its place when it explains a business result. That result earns attention when it reflects a need the account already owns. The feature provides proof, while the higher levels give the buyer a reason to care.

The shape of the hierarchy

1

At the need level

2

Frame that need

3

Company or offer level

4

Functional use case

5

Feature level

1. At the need level
2. Frame that need
3. Company or offer level
4. Functional use case
5. Feature level

Use the hierarchy to keep the message connected from business need to product detail. Each lower level should make the level above it more believable.

A value proposition is a statement that conveys what a brand does and how it differs from competitors.¹ It works at the product level to support a buying decision, while its origins come from within the business.²

Organize the structure as an inverted pyramid, with the product need as the broadest category.³ Work through it like this:

• At the need level, identify the fundamental need the customer is trying to serve through the product or interaction with the company.⁴
• Frame that need as the job to be done, then run the hierarchy down to the specific customer facing item or SKU.⁵
• At the company or offer level, state the market need you fulfill and what separates your offering from other options.⁶ Make the offer clear by naming what you provide, who you serve, and the strengths that set you apart.⁷
• At the product family and product class level, describe the functional use case.⁸ Narrow it to the situation where the product earns attention.
• At the feature level, show the specific part of the product that makes the use case possible. Practitioners can drill down to this level when they need to connect the proposition to product detail.⁹

If a feature cannot be connected to the use case, move back up the hierarchy and find the business reason it supports.

Build the message from the hierarchy

Write the proposition from the top down, then use the lower levels to support it. Keep the main statement short enough to use in a call or message.

Marketers should use the value proposition from top to bottom in the order set out by the framework.¹⁰ It is usually part of a broader marketing strategy and runs to no more than a few sentences.¹¹

Use this working sentence as a draft:

For [audience], we help with [job or business need] by achieving [business result] through [product or use case], using [feature].

Start with the business result when the conversation reaches an executive. For an executive, frame value around what the business is trying to accomplish, then use functionality to support that outcome.¹²

When the prospect gives you a pain point, map it to a specific value proposition and then to the feature that supports it.¹³ Connect the pain point, feature, benefit, and goal so the buyer can see the business case in one chain.¹⁴

Put the benefit first, the advantage next, and the feature last.¹⁵ The advantages sit between the benefits and features.¹⁶ This order lets the buyer hear the result before thinking about how the product works.

Add differentiation and relevant statistics where they help prove the benefit of working with your organization.¹⁷ Keep each piece of proof attached to the value it supports so the message does not become a collection of disconnected product facts.

Choose the level for the call

Lead at the level of the effect the buyer can explain and defend internally. Use discovery to find that level before spending time on product detail.

When selling to another business, position the offering as high in the value proposition hierarchy as the conversation allows.¹⁸ The hierarchy has also been described as determining almost entirely how well a product can be sold and priced based on where it is positioned.¹⁹

An illustrative ladder assigns 2 points to improving an existing process, 5 points to saving the company real money, 8 points to driving revenue, and 10 points to driving share price, valuation, or market capitalization.^{20, 21, 22, 23}

Use that ladder to guide your questions:

• If the buyer describes a process problem, ask what the change affects beyond the process.
• If the buyer describes savings, ask where the business would feel the gain.
• If the buyer describes revenue, ask which business result proves the improvement.
• If the buyer points to a wider company outcome, ask what must be true at the product and feature levels for that outcome to hold.

Move down the hierarchy when the buyer needs proof of how the result happens. Move up again when the conversation gets stuck in functionality without a business effect.

Test the hierarchy in discovery

Discovery gives you the material for each level. Capture the buyer's own language before writing the final proposition.

Create a simple worksheet or use a sheet of paper to map the hierarchy for the customer.²⁴ Write the job or need first, then record the offer, use case, feature, benefit, and business goal that connect to it.

Ask:

• What are you trying to accomplish?
• Where does the current process fall short?
• What changes if this problem is solved?
• Which outcome would make the change worth acting on?
• What would you need to see to believe the product can produce that outcome?

Listen for the level where the buyer becomes specific. A process description gives you an entry point, a business result gives you the lead message, and a feature request tells you which proof to prepare. Move on when you can restate the need, outcome, and product connection in the buyer's terms.

What not to do

Keep the hierarchy useful by removing the habits that blur its levels.

Keep the proposition clear of buzzwords, meaningless slogans, and vague marketing language.²⁵ A value proposition is different from an elevator pitch.²⁶ Keep the value of the brand clear.²⁷ Keep the business value proposition aligned with the overall brand positioning and the product and service messaging.²⁸ Do not assume two customers in the same sector will perceive value in the same way.²⁹

Before the next call, fill in a line for each level and circle the highest level the buyer can own. Use the lower levels to prove that statement, then remove any feature that has no clear path back to the buyer's job or business result. That gives you a proposition you can test in conversation without losing the thread between outcome and product.