SaaS Value Proposition: The Essential Guide - SmartKarrot Blog

SaaS Value Proposition: The Essential Guide

Understand what SaaS value proposition means and how it can impact customer retention. The essential guide to SaaS value proposition for company growth.

SaaS Value Proposition

People tend to love catchphrases. We remember the better ones well enough to associate them with a brand or product immediately. Catchphrases are the memorable, short lines that highlight the value of a product or company, or the value proposition. A value proposition explains what is innovative about your product or your organization that might attract customers.

What is a SaaS Value Proposition?

Simply put, a SaaS value proposition is the competitive advantage of a SaaS product, including what makes it innovative and unique to your prospects. It is a chance to explain your offerings and why they matter. Including your value proposition in any communication about your SaaS product will drive the idea home to your potential customers.

A SaaS value proposition is clear and compelling and answers these three questions:

  • What is the product about?
  • Who does the product or service help?
  • How does the company do it differently?

It is important to have a compelling piece or catchphrase that encapsulates the value in a short, interesting manner. It also needs to be a unique, measurable phrase.

How to Create a SaaS Value Proposition?

To create a value proposition for your SaaS product, it is important to keep certain aspects in mind. First, your SaaS value proposition needs to be customer-centric. It should use language your customer would use and avoid using jargon. The value proposition will also answer your customers’ questions.

Identify target audience

It’s important to understand what problems your customers have that your product can solve when creating your SaaS value propositions. By understanding this, it is easier to ascertain what they value, desire, and can benefit from. You may be able to understand who your customers are and what they need by looking at demographic data and social media.

Know what you offer

Identifying the features of your product and how they will benefit your customers will help you create your value proposition. Communicating the beneficial features will help them understand its value without having to take the time to figure it out for themselves.

Know what makes your brand special

Uniqueness is important for any brand. Identify what it is that makes your brand stand out in the crowd. Determine how you differ from your competitors and include it in your value proposition.

Gather data

Qualitative data research will tell you what is really happening. Customer engagement analytics is very useful in fixing what is wrong. Gathering data on A/B testing will also help you see what works based on data like age, gender, place, or trigger factors. Surveys, customer feedback, observations, and customer interviews are also great ways to collect data. Net promoter scores, customer satisfaction, and customer profiles can also help you understand customer data and determine what is working and what is not as you create your value proposition.

Check the language-market fit

A value proposition needs to speak the language of the customer. When customer language mirrors brand language, you’re already in sync. Understanding their pain points and communicating how to resolve them clearly will help you sell. Of course, even if you do everything right, but have the wrong tone or incorrect grammar and punctuation, you’ll lose them. Make the language clear and make it match that of your customers’.

Monitor how it works

Once you have created your value proposition, it is important to test it. If you want to test two versions, you can try an A/B test to determine which one performs better. Or you can monitor changes in traffic and click-through-rates, etc. to determine how effective it is for you. If you feel the language is not working, make some changes and try again.

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Why is a Good SaaS Value Proposition Important?

So, a value proposition is the the value of each service or product that customers need and want, but, why is it so important? A good value proposition is important for reasons, such as:

  • Increases customer loyalty
  • Attract and convert customers
  • Do better than competition
  • Increase prices
  • Improve sales and conversions

How Does the Value Proposition Affect the customer?

Customers are driven by value. They either believe in what the product has to offer or they don’t. If the value proposition is well made with data and research, it increases the likelihood of positive reactions from you customers. It can even improve customer renewals.

SaaS Taglines That Highlights Value Propositions

Google Drive

“A safe place for all your files”

A simple line depicting what the product does while also making sure the safety angle is addressed.


“Watch TV shows and movies anytime, anywhere”

Well, isn’t it honest? You can watch TV shows and movies anywhere. It builds on convenience and offers the product.


“A messaging app for teams.”

Slack’s value proposition lies in how they integrate communication systems for teams. With easy plugins and good copy, the tagline is on point.


“Your life’s work”

This tagline also points out that it is the workspace to get things done. It enables you to be productive, organized, and efficient everywhere and anywhere.

Bottom Line

With the right process, it is possible to create the right value proposition. You need to make sure people know the offering, understand it, and are convinced enough to stick with your brand. Take your value points from your customers. They always know what drives them. Use your customer surveys and customer feedback to get the information that matters and create the best value proposition for your SaaS product.

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