Unique Value Proposition, Part 1: 4 Steps to Creating a UVP
So you’ve identified a customer problem and built a product or service to solve it. How can you convince potential customers to buy from you rather than the competition? It’s time to define your unique value proposition (UVP).
A UVP is a single, clear, compelling message that states why you are different and worth a customer’s attention. In other words, it’s a promise of value to be delivered.
Understanding how to communicate this value statement is one of the most important parts of developing your business idea. Having a strong UVP will solidify your idea and consolidate your overall message into a simple statement. It will also serve as the starting point for developing your marketing messages.
You can write your own UVP using this 4-step formula:
Step 1: State the end benefit you’re offering.
This single, short sentence should be an attention grabber. It can mention the product and/or the customer.
Step 2: Explain specifically what you offer, for whom, and why it is useful.
Identify your ideal customer (if you already haven’t done this in step 1) and describe how your product solves their problem or improves their situation. Explain why they should buy from you and not from the competition. Keep it concise, no more than 2 to 3 sentences.
Step 3: List the key benefits of what you do/offer.
In a few bullet points, list the specific benefits your product delivers.
Step 4: Evaluate your completed UVP.
Your UVP should clearly answer the following questions:
- What product or service is my company selling?
- What is the end benefit of using it?
- Who is my target customer?
- What makes my offering unique and different?
Congratulations! You’ve created a first draft of your UVP. Now you can refine it by editing out extraneous words and eliminating jargon. The better you can distill the answers to the above questions to their most basic forms, the more powerful your UVP will be.
In our next blog post, we’ll explain how to use your UVP to develop a pricing strategy for your product or service. This process is also discussed in our Startup Financial Essentials workshop; visit the NaperLaunch Academy webpage for more information and a schedule of upcoming dates.