What Is a Unique Value Proposition? How To Create a UVP

A compelling unique value proposition (UVP) is the first step toward great marketing. Learn how to craft one, with real-world examples.

Shopping decisions aren’t just about price and quality—emotions play a big part. As a business owner, your unique value proposition (UVP) helps you connect with your audience on a deeper level.

In this guide, you’ll learn step-by-step instructions for defining your UVP, with tips from entrepreneurs and operators on crafting a great UVP that resonates with your target audience.

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What is a unique value proposition?

A unique value proposition is a clear statement that explains why customers should choose your product or service over competitors. 

“Your value proposition is bigger than the product or service itself,” says Dan Demsky, cofounder and CEO of Unbound Merino, in his guide to creating a UVP. “You’re essentially saying, ’This purchase will outperform your expectations and solve the problem that needs solving.’”

It’s important to understand what a UVP is not:

• It’s not a catchphrase or a slogan
• It’s not an internal document like a mission statement or positioning statement
• It’s not a generic marketing pitch

Instead, a strong UVP gives potential customers three key insights:

1. What your product or service provides

2. Why they need it

3. How your offering differs from competitors

Why your unique value proposition matters

• Build customer confidence
• Evaluate business ideas
• Guide marketing efforts

A formal value proposition statement offers several critical benefits for your business:

Build customer confidence

A strong value proposition helps customers understand why your solution is right for them. When you integrate it into your marketing materials and customer experience, you:

• Help customers make informed decisions
• Give them confidence in their purchase
• Potentially turn them into brand advocates

As Dan puts it, “Our job is to help customers see the layers of value they’ll receive or the benefits they’ll experience as a direct result of making a purchase on our website.”

Evaluate business ideas

Your UVP isn’t just for customers—it’s a powerful tool for evaluating new business ventures. Hud Oberly, founder of Here’s 2 You, shared on the Shopify Masters podcast how he uses his UVP to ask critical questions:

• Why is my business the right vessel for this idea?
• What makes me uniquely qualified to share this concept?

“If I can’t answer those questions, I probably shouldn’t do it,” Hud explains. “But if I can answer them, let’s get moving.”

Guide marketing efforts

While creating a UVP isn’t a marketing activity itself, it influences nearly every marketing decision—from website design and packaging to social media posts. A good value proposition should be a strategic compass that keeps your marketing team focused and consistent.

Your 6-step UVP development process

1. List your product or service’s benefits
2. Research your customers
3. Research your competitors
4. Determine your product’s core ’job’
5. Write your UVP
6. Test your UVP

Crafting a unique value proposition is about understanding what you do well, what your customers need, and how you stand out. By diving deep into your product, you’ll develop an effective value proposition that speaks directly to why customers should choose you.

1. List your product or service’s benefits

Start by mastering the features, advantages, benefits (FAB) exercise—a powerful tool for uncovering your product’s true value. This approach helps you look beyond surface-level features to understand what really matters to your customers. 

For each of your product’s or service’s features, explore: 

• The specific feature
• What the feature accomplishes (its advantage)
• Why a potential customer would genuinely value that (the benefit)

For example, running the FAB exercise for a headphones brand might uncover the following:

• Feature: Cushioned ear pads
• Advantage: More comfortable listening experience
• Benefits: Longer, more enjoyable audio sessions without discomfort

This exercise pushes you to think beyond mere specifications and connect with the emotional and practical needs your product addresses.

2. Research your customers

“Get to know your customers as well as possible,” advises Dan. “That’s the best way to hone in on your value proposition.”

Market research isn’t just a box to check—it’s your strategic advantage. Go beyond surface-level market data and dive deep into understanding your audience’s true motivations. 

Effective customer research strategies:

• Conduct comprehensive market research
• Interview existing customers about their purchase journey
• Explore the deeper emotional drivers behind their choices

Dan offers a pro tip: “Surveys can help, but talking to actual customers on Zoom or phone calls is the best way to tap into their insights.”

Uncovering hidden motivations

Customers rarely tell you their entire story upfront. While someone might say they need headphones to listen to music at work, their real motivations often run deeper:

• Eliminating distractions in a noisy office
• Boosting productivity
• Feeling more in control of their work environment
• Avoiding the frustration of poor-quality audio

Understanding these underlying needs transforms your approach from selling products or services to solving problems.

3. Research your competitors

Competitive research is more than a simple comparison—it informs how your product can carve out a competitive advantage in the market. Even if you’ve discovered an incredible customer need, you’ll struggle if another product already fulfills that need identically.

Competitive analysis approach:

• Identify at least three well-known competitors your customers would consider
• Catalog each competitor’s features and marketing strategies
• Look for meaningful gaps in the market to identify your unique selling proposition

Consider the headphone market example: If you’re targeting Apple users with a Bluetooth-based solution, you’ll face significant challenges competing with AirPods, which are core to Apple’s ecosystem.

When practical benefits seem similar to competitors, look beyond surface-level features. Consider less tangible benefits that set your brand apart—like the unique experience you create for customers. If your product can make customers feel something distinctly different from competitors, that’s a compelling value proposition. Maybe it’s the confidence your brand inspires, the sense of belonging you create, or the emotional connection customers feel when interacting with your product.

4. Determine your product’s core ’job’

Dan recommends the “jobs to be done” framework from Strategyzer as part of its value proposition canvas. “Think of your product as being hired to do a specific job,” he explains. Ask yourself: “What exact problem am I solving for my customer?”

This approach might sound unconventional, but it brings remarkable clarity. For Dan’s Unbound Merino, this meant recognizing they weren’t selling fashion—they were solving a traveler’s packing challenges.

Example: Unbound Merino’s job:

• Not a fashion statement
• Practical solution for travelers

Reduces luggage needs through odor-resistant, multi-wear clothing

By framing your product as a solution hired to do a job, you move beyond features to address genuine customer needs.

5. Write your UVP

After completing the previous exercises, you’ll have gathered critical insights about: 

• Your product’s unique strengths
• Your customers’ deepest needs
• How you stand out in the market

Now comes the challenging part: distilling all this information into a single, powerful statement.

Don’t aim for perfection immediately. Start by writing a longer version that captures your core value, then refine it into a snappy, customer-facing statement. Your initial draft might be a paragraph that inspires more concise messaging.

Tips for crafting your UVP:

• Focus on the specific problem you solve
• Highlight what makes you different
• Speak directly to your customers’ most important needs
• Avoid industry jargon
• Make it clear and compelling

6. Test your UVP

Creating your UVP isn’t a one-and-done process. Testing is crucial to ensure it truly resonates with your target audience. 

Share your UVP draft with existing or potential customers in interviews, or gather more quantitative data by split testing different versions of your UVP on product pages or PPC campaigns and their corresponding landing pages. 

4 real-world unique value proposition examples

• Unbound Merino: Simplifying life through clothing
• Onsen: Turning routine into ritual
• Ember: Savoring every sip
• Pela: Sustainability as a lifestyle choice

Crafting a compelling value proposition can transform how customers see your product. These real-world examples show how successful businesses go beyond features to tell a powerful story.

1. Unbound Merino: Simplifying life through clothing

Unbound Merino’s product page highlights its signature t-shirt with the value proposition “Wash less. Wear longer. Simplify your life.” Source: Unbound Merino

UVP: “Wash less. Wear longer. Simplify your life with our bestselling 100% superfine Merino Crew.”

“We sell t-shirts and other high quality merino clothing,” Dan explains. “But what people are actually buying is simplicity, less washing, and a less complicated life.”

The brilliance of this UVP lies in its ability to transform a basic clothing item into a lifestyle solution. Instead of talking about fabric quality or design, Unbound Merino speaks directly to a universal desire: making life easier.

2. Onsen: Turning routine into ritual

Onsen transforms everyday towels into a luxury experience, promising an “at-home spa” with their soft, quick-drying waffle-weave towels. Source: Onsen

UVP: “Supremely soft, quick-drying towels designed to turn routine into ritual.”

Onsen does something remarkable—it reimagines a bathroom essential as a luxury experience. Its homepage boldly declares: “Your at-home spa awaits.” This isn’t just about selling a towel; it’s about transforming an everyday task into a moment of self-care.

3. Ember: Savoring every sip

Ember’s homepage showcases their innovative temperature-control mug, promising the perfect coffee experience with the tagline “Now we can savor our coffee.” Source: Ember

UVP: “Now we can savor our coffee.”

Creating a UVP for a product in an emerging category requires a different approach. Instead of comparing your product to competitors, you need to educate customers about why they need your product. 

Ember, makers of “the world’s first temperature-control mug,” accomplishes this brilliantly with their UVP: “Now we can savor our coffee.” 

The mug does more than keep beverages warm—it promises “the perfect temperature, every time.” But the real value goes deeper. Ember provides:

• Consistent drink temperature
• Enhanced drinking experience
• Elimination of coffee frustrations

Customers aren’t just buying a mug. They’re purchasing the ability to enjoy their beverage exactly how they want, whenever they want.

4. Pela: Sustainability as a lifestyle choice

Pela’s artist collaboration page features phone cases with nature-inspired designs, emphasizing sustainability and creative partnerships. Source: Pela

UVP: “Beautiful design, without the guilt.”

Pela makes compostable phone cases from bioplastic, but they’re selling much more than an accessory. “The product is a phone case. The value is giving the consumer the ability to live more sustainably and reduce their carbon footprint,” explains Dan. 

Their homepage boldly declares: “Remove plastic from your life; it’s bad for the planet and even worse for you.”

Key elements from Pela’s powerful UVP:

• Concrete environmental impact: Prevented 92,407,579 plastic bags from entering waste streams
• Inclusive language: Using “together,” “we,” and “our”
• Social proof from trusted sources like BuzzFeed: “This iPhone case is a much more sustainable option than all the other cheap plastic ones on the market.”

Pela’s website showcases their range of sustainable phone cases, highlighting their environmental impact by preventing millions of plastic bags from entering waste streams. Source: Pela

By using words like “together,” “we” and “our,” Pela equates a simple phone case purchase to joining an environmental movement. As Dan notes, “While you’re selling a physical good, what the customer is really buying is the sense of satisfaction of being a better global citizen.”

Unique value propositions FAQ

What is an example of a unique value proposition?

Hoka’s running shoe brand offers a standout example: “Hoka makes you feel like you’re flying.” This powerful statement highlights key product features, addresses a core customer need, and differentiates from competitors.

What are the different parts of a value proposition?

A compelling value proposition brings together three essential elements:

A compelling value proposition brings together three essential elements:

1. Customer needs: Understanding the specific problems your target audience wants to solve

2. Your strengths: Identifying what your business does exceptionally well

3. Competitive differentiation: Explaining how your offering is unique compared to alternatives

How do you create a unique value proposition?

Start by thoroughly understanding your product’s benefits, your customers’ core needs, and any gaps in what competitors offer. Then craft a description that’s authentic, speaks directly to your customers, and highlights what makes your offering truly unique. Most importantly, test your value proposition to ensure it actually drives sales and connects with your target audience.