You have most likely heard the term Unique Value Proposition (UVP). But it is used in various business contexts that can indeed be confusing. In this article we will clarify what it is and explore those scenarios.
What is the definition of a Unique Value Proposition
A UVP is a clear statement that describes the unique benefit a product, service, or company provides to its customers. It outlines how it solves their problems, and what distinguishes it from its competitors.
Recommended reading:
What is the value proposition canvas?
Understanding the business model canvas.
The Value Proposition House framework by Philips.
How is UVP used in different contexts
In addition to the different use cases of the terminology, we will cover some value proposition examples in the explanation.
- Marketing: A marketing UVP communicates the unique benefits of what you’re selling to potential customers. It helps your company stand out from the competition and plays a big role in how people decide to buy.
- Examples:
- Dollar Shave Club: “Shave time. Shave money.” Emphasizes convenience and affordability.
- Toms Shoes: “One for One” model – communicates a strong social mission alongside product quality
- Examples:
- Sales: Here, a UVP is often called a Unique Selling Proposition (USP). Sales teams use it to pinpoint the reasons why their product or service is the best option. A good UVP should express your brand’s values and benefits to customers.
- Examples:
- Price: “Lowest prices guaranteed, or we’ll beat any competitor’s quote.”
- Convenience: “Same-day delivery, change your order right up until shipment.”
- Experience: “Personal stylist consultations included with every purchase.”
- Quality: “Lifetime warranty – we stand behind our products. “
- Examples:
- Product Development: Product teams use a UVP to guide their work – ensuring they’re solving a genuine problem for customers and offering something new to the market
- Example:
- Projector UVP: “Small and compact projector with the light output of a full-size model.” (Addresses the pain point of needing large and bulky projectors to get full brightness power)
- Projector UVP: “Small and compact projector with the light output of a full-size model.” (Addresses the pain point of needing large and bulky projectors to get full brightness power)
- Example:
- Business Strategy: Here the UVP defines the type of value your whole company provides. It could even mean finding a new way to define your market to expand opportunities.
- Examples:
- Netflix: Moved from mail-order DVDs to convenient streaming, changing home entertainment entirely.
- Airbnb: Disrupted the hotel industry by offering unique accommodations and experiences from locals
- Examples:
Conclusion
While the term UVP gets used in various ways, the core idea is always the same, and that is showcasing what makes you, your product or service special! The difference is mainly in how that UVP is applied on the marketing, sales, product, or big-picture level.
Recommended reading :
- Value Proposition Guide (with examples): https://blog.hubspot.com/marketing/write-value-proposition
- How to write a Unique Value Proposition: https://blog.hubspot.com/marketing/write-value-proposition
- Unique Selling Proposition (USP): https://www.investopedia.com/terms/s/sp500.asp
A UVP is a clear statement that describes the unique benefit a product, service, or company provides to its customers. It outlines how it solves their problems, and what distinguishes it from its competitors.
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