Value proposition
A precise articulation of the benefits a product or service delivers to a defined customer segment, and the reasons it is preferable to alternatives. It answers three questions: what does the customer gain, what problem is solved, and why now.
In practice
'Simple accounting software' is a description. 'Month-end close in 4 hours instead of 2 days for micro-businesses without an in-house accountant' is a value proposition: it quantifies the gain, targets a specific segment and implicitly competes with a known alternative. Testing with real prospects before committing it to sales materials saves months of repositioning.