Value proposition is defined by the Cambridge Dictionary as “business or marketing statement that describes why a customer should buy a product or use a service”.

Value proposition is central to the marketing process. At a fundamental level, a value proposition is the means by which a brand answers the question of why someone should do business with them. This applies equally to a brand in a digital and non-digital context. Central to the digital value proposition is customer orientation, it ensures a brand is customer-orientated, outward-looking and crucially willing to update and adapt.

This blog will go through the ways in which you can develop a unique digital value proposition to appeal to customers whilst differentiating your business from competitors. We’ll be discussing information from positioning and crafting compelling digital value propositions to adapting and measuring your digital value proposition. So let’s get started.

Image of man on laptop with headphones creating digital value proposition
With any product or service, the price should reflect its quality and value. Value establishes price.

Strategic Positioning: Defining Your Organisation’s Unique Essence and Direction

Digital value proposition will not only inform all marketing decisions but also inform the overall strategic direction of the brand as a business. This approach is fundamentally customer-oriented which is in contrast to the product-orientated approach that was the more traditional orientation for brands operations and marketing functions in the past.

In modern digital communication, it is essential to consider, understand and manage consumer perceptions of price, quality and value in relation the digital value proposition. With any product or service, the price should reflect its quality and value. Value establishes price. So, understanding how to influence and manage consumers’ perception of value is the basis of creating and maintaining a viable brand or business.

Crafting Compelling Digital Value Propositions for New Businesses

For smaller businesses and organisations, a common question arises: how do we come up with digital value propositions? Let’s break it down:

  • Target Audience: Clearly define the target customer segment, their needs, and their pain points/needs/wants.
  • Identify gaps in the market: Analyse the competitive landscape and identify areas where existing solutions are lacking or where there is a demand for new and innovative offerings.
  • Focus on differentiation: Highlight and clearly communicate the unique features and benefits that differentiate your product or service from the competition and offer customer value. State the intrinsic benefits unique to your product. Show how your product or service is best in the market.

Look for the unique aspects of your business; look into your digital strategy and marketing strategy then leverage the multitude of digital channels you have at your disposal (email marketing, social media, websites); and then come up with compelling brand messaging that will resonate with your target audience.

Unlocking the Power of Digital Value Propositions: Igniting Customer Engagement in the Digital Era

A compelling digital value proposition goes beyond mere product or service offerings; it taps into the human element of connection, creating experiences that resonate with customers on an emotional level.

A strong digital value proposition establishes an emotional connection with customers, making them feel valued and appreciated. This connection not only enhances the overall customer experience but also drives loyalty and retention. When customers feel emotionally invested in a brand, they are more likely to return for repeat business, recommend the brand to others, and become loyal brand advocates.

A strong digital value proposition often serves as the foundation for building a thriving community around a brand. Online forums, social media groups, and customer feedback platforms can provide opportunities for customers to connect with each other, share experiences, and form a sense of belonging. This sense of community fosters loyalty and encourages customers to become brand advocates, spreading positive word-of-mouth and attracting new customers.


The increased digitisation of society, further accelerated by the Covid-19 pandemic means that establishing a digital value proposition is pivotal for most businesses. Consequently, the sheer amount of noise in the digital space threatens to drown out brands. This means cutting through the noise with potent digital marketing campaigns has never been more both challenging as well as relevant.

Before establishing a digital value proposition, it is essential that a brand has collected and considered as much information about their market and competitors as possible. This will allow businesses to assess relevant strengths and weaknesses. This will then enable them to compare and contrast product and/or services offerings through the lenses of value types. When a consumer uses any digital search engine they are essentially asking a question. it is the job of a brand’s digital value proposition to answer that question for them.

Image of iPhone with Bloomberg news article on it discussing the high levels of COVID-19 infections in the USA
Challenging emerging events means cutting through the noise with potent digital marketing campaigns has never been more both challenging as well as relevant. Image Credit: Unsplash: AronPW – Bloomberg News Article.


The formulation of any digital value proposition should consider a wide range of information. How this is collated varies from business to business, it is dependent upon the size and scale of the businesses’ operations and customer base. However large the dataset, the fundamental considerations of the formulation of digital value proposition don’t change. It should consider the four established types of value and the questions they pose:

Functional Value: What does it offer? Specifications? Performance? Convenience? What solution does it provide for a problem the customer may have?

Monetary Value: Accessibility? Is the price paid relative to a product or service’s perceived worth?

Social Value: Connectedness? Status? Does owning a product or engaging in a service allow the consumer to connect with others? 

Psychological Value: Customisable? Experience Creation? Does the product allow consumers to express themselves or feel better about themselves?

Answering these questions will ensure brands have comprehensively assessed product or service’s value in its wide-ranging forms. Once this is achieved it then becomes vital that a brand distils this information into a simple digital value proposition that addresses these points. This will then form the basis of its overall business strategy and resulting marketing functions.

Two people having a business meeting
“We need to learn…we need to understand what life is like in the community to understand what they want” Katie Dill.


This approach is exemplified by Netflix, who provide an affordable, customised and convenient streaming platform. Similarly, Amazon provides highly competitively priced products with convenient delivery. Likewise, Lyft, who provide a ride-sharing online platform with a convenient user-friendly and accessible focus. Lyft’s vice president, Katie Dill reinforced this approach “We need to learn…we need to understand what life is like in the community to understand what they want” 

Moreover, even Apple whose co-founder Steve Jobs famously said “Our job is to figure out what they’re going to want before they do” expertly used value perception to differentiate Apple from competitors and didn’t focus on process. Instead, Job’s harnessed innovative user-friendly functional value alongside social value and desirability to effectively establish Apple’s value proposition at an inflated price point.  

The relevant common theme of these brands is not their shared financial success nor their sheer scale. It is their large operational scope in product and/or service provision offering which is a result of their ability to adapt and grow. Their notable evolution and immense growth owe a lot to successfully establishing value. 

These successful strategic decisions fundamentally  informed product and marketing direction. These brands expansion may not have been possible without their understanding and focus on establishing and reinforcing value propositions and varying forms of customer-orientation.

‘Getting Lost’

Product–orientated brands often get lost in the digital marketing sphere. Without placing emphasis on customers wants, needs and desires brands will struggle to effectively communicate with their target audience and may not even know who they are targeting. Such brands, however, well-resourced will likely fail to effectively reach relevant market segments and engage with them. The language, themes and focus of such communication is fundamentally representative of business-wide strategic failure concerning effectively utilising the digital sphere. 

Image of a storefront
Customer-orientation positions a brand to effectively engage consumers and retain their interest and custom.

Digital Value Proposition for Different Business Models: Tailoring Value Propositions to Specific Industries

Digital Value Propositions encompass the ability to tailor digital value propositions to the specific needs and characteristics of different business models and industries. By understanding the unique digital value proposition that each industry seeks to offer, businesses can craft compelling messages that resonate with their target audience.

E-Commerce / Digital Business

For e-commerce businesses, a compelling DVP focuses on providing a frictionless and personalised shopping experience for online customers. This includes factors such as:

  • Seamless Navigation: Each category should be segmented and customers should find it easy to search and find what they’re looking for.
  • Convenient payment options: Secure and user-friendly payment gateways should be integrated to ensure a smooth checkout process.
  • Real-time order tracking: Customers should be able to track their orders in real time, providing updates on order status and delivery ETAs.


  • Customisable solutions: B2B companies should tailor their offerings to the specific needs and requirements of their clients.
  • Enhanced collaboration and communication: Providing collaborative tools and platforms to foster communication and collaboration between B2B partners.

Financial Services

  • Transparent and accessible financial information: Providing comprehensive information on products, rates, and fees to enable informed decision-making.
  • Secure and convenient payment solutions: Providing secure and user-friendly payment options, including mobile wallets and digital banking platforms.
  • Personalised financial advice: Offering tailored financial planning and guidance based on individual needs and circumstances.

It is important today for businesses to continually listen to consumer feedback and understand their needs and wants to continually improve personalised services. Adapt and evolve your digital value proposition based on technology and industry trends as well as what your competitors are adopting.

Digital Value Proposition in the COVID-19 Era: Adapting to Changing Customer Needs

The COVID-19 pandemic has undoubtedly reshaped the way businesses operate and interact with their customers. This unprecedented shift has also brought about a transformation in the concept of digital value proposition. While the core principles of a compelling digital value proposition remain consistent, the pandemic has highlighted the need for businesses to adapt and evolve their digital value propositions to address the evolving needs and preferences of customers amidst the changing landscape.

Some key brand examples that have adapted in the wake of the pandemic include Chanel Beauty, now enabling customers to try on lipstick shades before buying and food and beverage outlets such as Starbucks and McDonald’s who encourage mobile ordering. These things all help to improve the customer experience.

Emerging Customer Needs: A Focus on Convenience and Safety

The pandemic has accelerated the adoption of digital channels and transformed customer expectations. Consumers now demand seamless, convenient experiences that prioritise their safety and well-being. This shift has placed a greater emphasis on businesses’ ability to provide contactless interactions, enhanced security measures, and personalised experiences that cater to their specific needs during a time of uncertainty.

Digital Value Proposition Adaptations: Embracing Digital Proficiency and Seamless Experiences

Businesses need to seamlessly integrate digital channels into their operations, ensuring that customers can easily access information, make purchases, and resolve issues without relying on physical interactions. Furthermore, incorporating personalised recommendations, targeted marketing campaigns, and tailored customer support should be adopted as these can go a long way in fostering stronger customer relationships and building brand loyalty.

Measuring Digital Value Proposition Effectiveness: Ensuring Relevancy and Impact

The success of a digital value proposition hinges on its ability to resonate with target audiences and drive desired outcomes. Regularly evaluating and refining the digital value proposition is crucial for ensuring its continued relevance and impact in a dynamic market.

Key Elements of Digital Value Proposition Evaluation:

  1. Measuring Impact on Key Performance Indicators (KPIs): Track metrics such as website traffic, conversion rates, customer satisfaction, and customer retention to gauge the effectiveness of the digital value proposition in achieving business goals.
  2. Gathering Customer Feedback: Conduct surveys, interviews, and focus groups to gather direct insights from customers about their understanding of the digital value proposition, their perceptions of the brand, and their satisfaction with the overall experience.
  3. Analysing Competitive Landscape: Monitor how competitors are positioning themselves and addressing customer needs, identifying opportunities to differentiate and strengthen the company’s unique value proposition.

Summary of Digital Value Proposition

For the most part, especially in a digital context, the language of product-orientated brands with its reliance on techno jargon will fail. In a crowded digital space, customer-oriented brands that have been able to establish a clear value proposition which they willing to update will continuously engage in a relevant conversation with consumers are best placed to acquire and retain them as customers. This two way-communication is central to digital communication in the social media age.

This both informs and forms a part of a digital value proposition. A central part of this two-way communication and customer-orientation is engaging customers with simple and effective language. That is why in essence a digital value proposition is a simple, concise statement that engages with relevant consumers in a relevant language that represents much more.    

Frequently Asked Questions

Q: What is a digital value proposition?

A: A digital value proposition is a concise and compelling statement that explains what your product or service does and why it’s valuable to your target audience. It’s the essence of what you offer and why customers should choose you over the competition.

Q: What are the key elements of a strong Digital Value Proposition?

A: A strong Digital Value Proposition should be:

  • Clear and concise: It should be easy for customers to understand what you offer and why it’s valuable.
  • Measurable: It should be possible to track the impact of your digital value proposition on your business objectives.
  • Differentiable: It should set you apart from your competitors.
  • Actionable: It should motivate customers to take action, such as visiting your website, signing up for your newsletter, or making a purchase.

Q: How do I develop a strong digital value proposition?


  1. Understand your target audience: Who are you trying to reach? What are their needs, pain points, and aspirations?
  2. Identify your unique value proposition: What makes your product or service different from the competition?
  3. Articulate your value proposition in a clear and concise way: Use simple language and avoid jargon.
  4. Test and refine your digital value proposition: Get feedback from customers and make adjustments as needed.

How can I measure the effectiveness of my digital value proposition?

There are a number of ways to measure effectiveness, such as:

  • Website traffic: Track the number of visitors to your website that are coming from your online value proposition.
  • Conversion rates: Track the percentage of visitors to your website who take a desired action, such as making a purchase or subscribing to your newsletter.
  • Customer satisfaction: Track customer satisfaction ratings and feedback.

How can I use my digital value proposition to improve my marketing and sales efforts?

Your digital value proposition should be the foundation of all your marketing and sales efforts. Use it to:

  • Create compelling marketing materials: Use it to write persuasive copy for your website, social media posts, and email marketing campaigns.
  • Train your sales team: Ensure your sales team understands your digital value proposition and can effectively communicate it to potential customers.
  • Optimise your website: Make sure your website is easy to navigate.

How can I make my digital value proposition relevant in a changing market?

Your digital value proposition should be constantly evolving as your market and customer needs change. Here are a few tips for keeping it relevant:

  • Stay up-to-date on industry trends: Keep an eye on what’s happening in your industry.
  • Listen to your customers: Get feedback from your customers and make changes as needed.
  • Experiment with different messaging and approaches: A/B test different digital value propositions to see what resonates best with your audience.

What are the benefits of having a strong digital value proposition?

A strong digital value proposition can help you:

  • Generate more leads: A clear and compelling digital value proposition can help you attract more potential customers.
  • Increase sales: A strong digital value proposition can help you persuade more customers to make a purchase.
  • Build brand awareness: A strong digital value proposition can help you establish your brand as an industry leader.
  • Create a loyal customer base: A strong digital value proposition can help you turn one-time customers into repeat customers.
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