A Unique Value Proposition (UVP), sometimes referred to as a unique selling proposition (USP), is a clear statement that describes the benefit of your offer, how you solve your customer’s needs and what distinguishes you from the competition.
Let’s break that down piece by piece, because many marketers and brands get this critical messaging component wrong.
Firstly, we establish that the statement must be clear. This is because it is a statement you should use to attract customers. It must be written and expressed in a way that is immediately understandable. No confusing business jargon. This is not a mission statement.
Benefit of Your Offer
Second, the unique value proposition speaks directly to the benefit(s) of your product or service. Benefits are not features. The benefit answers the why question – as in, “why should I, the consumer, care?”
How You Solve your Customers’ Needs
If the benefit tells your customers what you do, this is where you address more specifically how you do it. (Example: We make insurance cheaper by doing everything online. In that example, ‘making insurance cheaper’ is the what, and ‘by doing everything online’ is the how.)
What Distinguishes You from the Competition
This last part is where the “Unique” comes in. This answers the question, “why should I choose you over your competitors?” Are you cheaper, quicker, friendlier, simpler? What makes your offer unique?
Unique value propositions are important because they force you to distill your marketing message down into its simpler form. It’s a clear definition of what you offer and why people should purchase from you.
And make sure you check out these great examples of brands with perfectly simple unique value propositions.