A value proposition is a concise statement that communicates the distinct benefits and value a product or service offers to its target customers, setting it apart from competitors. It explains why a customer should select that particular product or service by highlighting the specific problem it addresses, the benefits it provides, and how it meets the customer's needs or desires more effectively than other options. A strong value proposition is tailored to resonate with the intended audience, emphasizing aspects such as cost-effectiveness, quality, convenience, innovation, or any other attribute deemed important by potential customers. The perceived worth or benefit a customer gains from a product or service, which dictates their willingness to pay, is critical for determining both the overall [[revenue model]] and the specific [[pricing]]. The [[Business Model Canvas (BMC)]] includes a block named Value Propositions. It describes the specific values a business provides to its customers through its products or services. It is a central element because it addresses the needs and concerns of identified [[customer segment|customer segments]], offering solutions that set the business apart from others in the market. By clearly defining the value proposition, businesses can better align their offerings with customer expectations and requirements, which may help improve customer satisfaction and loyalty.