You'd think it would be simple for companies to explain what they do – and yet, it's surprisingly complicated! From my experience working with many startups, I have noticed that many of them struggle communicate their value. It's not that they don't have something great to offer; it's just a matter of making it resonate.

Often, what looks like a marketing or sales challenge boils down to something deeper: an unclear value proposition. While it won't magically solve every marketing or sales hurdle, a strong value proposition is a great starting point. It will help you distill your unique strengths into a statement that answers the essential question: “Why should customers care?”

Related: Your value proposition is crucial. Here are 5 steps to make sure it resonates.

What is a unique value proposition?

A unique value proposition (UVP) is a simple statement that explains how you offer customers a distinct value. As marketers, we tend to overcomplicate it, but it's actually pretty straightforward.

A unique value proposition is a way to describe why your company, product or service is better than the alternatives. UVPs are inherently comparative because the concept of “unique” requires a comparison with something else.

Unique value propositions come into play during strategic positioning. Strategic positioning is the act of determining where an offering should sit in the minds of consumers. It is also inherently comparative because your “position” is also relative to your competitors and alternatives.

Types of unique value propositions

Again, think of UVPs as the unique value you can deliver. Obviously, this can happen at the brand, product and even feature levels.

• Brand Level: What makes your entire company unique?
• Product level: What differentiates a specific product from competitors?
• Feature Level: What makes your product features unique?

You will use each value proposition differently. For example, Hubspot leads with its brand-level UVP on the home page: “Software that's powerful, not exceptional.”

This broadly describes the value of the entire Hubspot toolset. Unlike other software companies (cough, cough, Salesforce), Hubspot is effective but not as difficult to use. When you dig deeper into one of its product pages, you'll find that the messaging is more focused on the product. It's more about feature comparisons and why Hubspot is the best solution for specific use cases.

Related: 5 Tips to Create Your Strong Brand

Unique value proposition model

First, let's review the standard unique value proposition model. Later, we'll go over the steps to write a UVP.

Model:

(What you offer) that (solves their problem) for (target customer) better than (competitors).

Example format:

“(Our business offering) helps (target audience) solve (problem) by (what makes it unique), resulting in (benefit).”

For example, at Sharpstance, we help B2B technology companies streamline their positioning with a battle-tested process so they can scale better. (It's kind of meta, I know.)

Related: How to make your business recession-proof

Unique value proposition versus positioning statement

Now, it's worth clarifying an important distinction. Unique value propositions and positioning statements are often confused, even though they are very (very) similar.

So what makes them different? Positioning statements involve adding even more context in an attempt to elicit a set of assumptions. This is why a positioning statement will always include market category as an important reference point.

A positioning statement goes like this:

“For (target audience), (product/service) is a (category) that (solve a problem). Unlike (competitor/alternative), (product/service) (unique capability).”

Going back to our Hubspot example:

For less technical marketing teams, Hubspot is one Customer Relationship Management (CRM) software that simplifies complex marketing tasks. Unlike the others CRMsteams can easily manage contacts, campaigns and workflows without being overwhelmed.

Positioning statements are more about carving out the specific place an offering should occupy in a customer's mind. The idea is to clearly explain the value so that customers “get” it immediately.

You can create UVPs and positioning statements for different scenarios. Consider different product or service offerings, target marketsand ideal customer profiles (ICPs).

Here are some examples of unique value propositions:

1. Lazy: “Slack helps startup teams be more productive at work by bringing communication together in one place, making work life simpler.”

2. Shopify: “Shopify helps small e-commerce sellers launch their business with a simple online storefront that will grow with them.”
3. Fresh books: “Freshbooks helps small business owners spend more time building their businesses and less time doing bookkeeping with easy-to-use software.”

Related: How setting clear financial goals can transform your business and personal success

How to write a unique value proposition

Here's how to write a compelling value proposition in four easy steps.

1. Define the target audience — First, you'll want to understand who you're talking to and where you're meeting them. For example, the audience you speak to on your home page will be broader than the one you speak to on a specific landing page.

Maybe you're going to a trade show and want to communicate your value to a more technical audience. Context matters.

2. Define the problem you are solving — Next, think about the problem you're solving for those customers. Almost all good deals focus on solving one pain point. What are your customers doing today that they could do better with your help?

3. List the alternatives — What would your customers do if you didn't exist? While the answer is often, “they would go with competitor A or B,” they might as well do nothing at all. Think about what's wrong with the status quo.

4. Explain why you are better — It's time to articulate what sets you apart. Emphasize yours unique sale point – the features or benefits that your competitors can't match.

Ask yourself:

• What do you offer that no one else does?
• How do you solve the problem better or differently?
• What unique experience or outcome can customers expect?

Be specific and focus on the elements that make your unique offer valuable. This could be superior technology, exceptional customer service, a unique process, or some other differentiating factor.

Remember, a well-crafted unique value proposition is more than a few lines of text – it helps lay the foundation for all of your marketing and positioning efforts.