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A Customer Value Proposition is a promise of value to be delivered to and acknowledged by the customer. It is a statement that clearly identifies benefits customers get when buying a particular product or service. A strong Value Proposition matches the customer's perception and offers something of high value and high differentiation. This can lead to a competitive advantage when consumers pick that particular product or service over other competitors, because they receive greater value.

Developing a value proposition is based on a review and analysis of the benefits, costs, and value that an organization can deliver to its customers, prospective customers, and other constituent groups within and outside the organization. It is also a positioning of value, where Value = Benefits - Cost (cost includes economic risk).

This document provides an overview to the concept of Customer Value Proposition. Other topics covered include Value Perception, Value Differentiation, Value Curve, Value-Differentiation Matrix, among others.

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Source: Customer Value Proposition PowerPoint document

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Customer Value Proposition

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