Value proposition: What is it and why is it important

A value proposition is a clear, succinct statement that explains how your product or service solves a customer's problem or improves their situation in a way that is distinctly better than the competition.

Or in simple terms, a value proposition answers these questions:

• who benefits?

• what is the measurable benefit?

• how much is the benefit (clinical effect, cost-impact, capacity freed)?

• when will this benefit occur (time horizon)?

• what evidence supports these claims?

Precision is critical: Decision makers need specific, measurable claims they can act on, not aspirations.

A value proposition builds the bridge from clinical need to a buying decision.

In healthcare, a value proposition must quantify the benefits delivered to each of the three stakeholder groups (payer, provider, patient).

The core challenge is translating unmet clinical needs, which are often purely clinical, into a compelling, multi-stakeholder value proposition.

This value proposition must address clinical, economic, and patient-reported outcomes.

Why is a value proposition important?

A strong value proposition is fundamental for success:

• Securing market access: An evidence-based value proposition is the currency for reimbursement and funding. Payers demand robust evidence. They need proof that benefits outweigh costs and that your innovation addresses a genuine, high-priority unmet need.

• Differentiation and competitive advantage: In saturated markets, clinical superiority alone is not sufficient. A value proposition articulates your unique selling point. For example, a device that not only performs better but also cuts theatre time by 20%, offers a tangible operational benefit.

• Internal alignment: A clear value proposition aligns your entire organisation. R&D, Sales, Market Access, and Marketing will all work towards a single, consistent promise to the market.

Evidence is king

Your value proposition must be supported by a robust and diverse evidence package:

• Clinical data: Include traditional clinical trial data. Increasingly, Real-World Evidence (RWE) generated through registries, electronic health or patient records (EHRs/ EPRs), and post-market surveillance.

• Economic analysis: Provide a full cost-effectiveness model, a budget impact analyses, and simple Return on Investment (ROI) models for the provider.

• Patient experience data: Integrate qualitative data (interviews, ethnography) and quantitative data (PROMs/PREMs). This makes the value tangible, especially in areas with significant disease burden or for rare diseases.

An inadequate identification of the right unmet needs and insufficient recognition of all key stakeholders are primary hurdles in developing effective value propositions for diagnostic technology.

Medtech and HealthTech companies must start with the economic and operational problems, such as unnecessary referrals, long waiting lists, as much as the clinical one.

Crafting a truly impactful value proposition is complex. It requires precision, deep market understanding, and robust evidence. You need to speak to payers, providers, and patients in their own language of value.

Practical steps to build your value proposition

Follow these steps to construct your robust value proposition:

1. Stakeholder mapping: List decision makers, their objectives, constraints, decision criteria.

2. Translate unmet need into measurable outcomes: Convert clinical pain into quantifiable endpoints. For example, reduce length of stay by X days, reduce readmission by Y%, or decrease complications by Z per 1,000 patients.

3. Evidence ladder: Build your evidence through RCTs (if needed), pragmatic trials, observational/RWE. Include a health economic model and budget impact analysis for short and medium term.

4. Implementation and adoption plan: Define who trains staff, who supplies consumables, and how IT/ EPR integration occurs Outline commissioning route and reimbursement ask.

5. Narrative and numbers: Create a one-page value story. Include your clinical claim, the economic case (for NHS and budget holders), a patient story or experience, your implementation ask.

6. Customer-friendly materials: Develop concise clinician packs, a payer one-pager (for ICBs or national bodies), and clear patient leaflets.

Are you struggling to translate your innovation's potential into a compelling, measurable value proposition?

Do your current statements lack the clarity or evidence needed to secure market access?

Buoyancy Health Strategy can help you to identify the critical unmet needs, quantify your benefits for each stakeholder, and build an evidence strategy that drives adoption.