Every successful startup needs a Unique Value Proposition (UVP) at its core. A UVP is more than a catchy tagline – it’s the fundamental promise of value that you deliver to customers, and it underpins your entire business strategy. A strong UVP guides what you build, how you talk about your product, how you position against competitors, and even how you pitch to investors. In early stages, founders often wear many hats, but one of the most critical tasks is articulating exactly why your product is different and worth paying attention to.
Why focus on UVP?
A well-defined UVP becomes a strategic tool that influences everything: product decisions, messaging and branding, market positioning, fundraising narratives, and internal alignment. Like the unseen foundation of a house, a strong UVP supports everything built on top of it. It clarifies your vision and rallies your team around a common purpose. On the flip side, an unclear or generic value proposition can confuse customers and even raise red flags with investors (a vague, buzzword-filled tagline often signals a lack of clarity in vision). By investing time upfront to nail your UVP, you establish a “north star” for your startup’s growth.
In simple terms, a value proposition is a concise statement of the unique benefit your product or service delivers to a specific customer segment. It’s the answer to the customer’s eternal question: “Why should I choose your solution over all the others?” A good UVP is typically a single, clear, and compelling message that communicates:
Not all value propositions are created equal. Some are unforgettable and compelling, while others fall flat. Here are a few hallmarks of a strong UVP:
Next, we’ll dive into some frameworks that can help you formulate your UVP, and then we’ll see real examples and go through a step-by-step process to create your own.
There is no one-size-fits-all formula for a value proposition, but there are proven frameworks that can guide your thinking. Here we introduce three influential frameworks to help you clarify your UVP from different angles: Jobs to Be Done, Porter’s Value Proposition Triangle, and Strategyzer’s Value Proposition Canvas. Each framework offers a lens for understanding how your product creates value in a unique way.
Why do customers really buy your product? The Jobs to Be Done (JTBD) framework, popularized by Clay Christensen, helps you answer this by shifting perspective: instead of focusing on customer demographics or product features, look at the underlying “job” the customer is hiring your product to do. In Christensen’s words, "customers don’t simply buy products; they “hire” them to get a job done" . Every purchase has a context and motivation behind it – a problem to solve, a goal to achieve, or a pain to alleviate. JTBD asks: What is the progress the customer is trying to make in their life or business?
Under this framework, you delve into the functional, social, and emotional dimensions of customer needs . For example, the famous “milkshake” example from Christensen’s research showed that people were “hiring” milkshakes in the morning not just for taste, but to relieve boredom on a commute and to have a convenient, tidy breakfast. This insight led to a better product and marketing strategy for milkshakes (e.g. making them thicker so they last longer during a drive, and marketing the morning use-case).
Food for thought:The JTBD mindset would have you fill in the sentence: “When _____ (situation), customers want to _____ (job to be done) so they can _____ (desired outcome).”
How JTBD informs your UVP: Once you identify the core job (or jobs) your product does for the customer, you can craft your UVP around that. It ensures your proposition is outcome-focused (the outcome being the job accomplished) and customer-centric (rooted in the customer’s context). For example, a ride-hailing service’s job-to-be-done might be “get me from A to B quickly and safely.” A UVP for an early ride-hailing startup might then be “Tap a button, get a ride in minutes – the fastest way to get from A to B in the city.” Notice how that speaks to the job (quick, convenient transport) rather than the technology (it doesn’t say “we have an app-based taxi network,” which is feature-focused).
As you develop your UVP, use JTBD to interview customers or observe behavior: ask questions like “What problem were you trying to solve when you used our product?” or “Think of the last time you [context], what did you do and why?” The answers will be gold for phrasing your value in terms that matter to customers (often, you’ll even pick up the exact words customers use – which you can mirror in your messaging).
Key takeaway from JTBD: Frame your value proposition around the job the customer needs done and the outcome they’re seeking, not just around your product’s specs. This ensures your UVP hits the nail on the head in terms of relevance and clarity.
Food for thought:
Customers “hire” products/services to accomplish a “job.”
Your Mission: Identify the job they need done, the pains they face doing it, and the gains or outcomes they aspire to.
Example: A mother “hires” a meal kit delivery service so she can quickly prepare healthy dinners while juggling a busy schedule. She’s not buying “food” but a time-saving, stress-reducing solution.
Michael Porter, a renowned strategy professor, describes strategy as defining a unique position, and at the heart of a company’s strategy is its value proposition. Porter suggests that a unique value proposition can be identified by answering three fundamental questions (often depicted as the three points of a triangle):
Porter’s “triangle” model of UVP: strategy is defined by which customers you target, which needs you meet, and at what relative price (or cost).
According to Porter, a truly unique value proposition comes from making distinctive choices in these three areas and aligning them. Your UVP essentially boils down to “We serve X customers, fulfilling Y needs, at Z price point (relative to others)”. For example, Ikea’s value proposition can be described via this triangle: Target (X) – cost-conscious young furniture buyers; Needs (Y) – stylish, space-efficient furniture solutions that can be taken home immediately; Relative Price (Z) – significantly lower cost than traditional furniture stores (achieved via flat-pack self-assembly and warehouse stores). All of Ikea’s messaging and strategic decisions align to that UVP (e.g. “Affordable design for the many” is a phrase that captures it).
How to use this framework: Ensure your UVP clearly reflects a choice in who and what – and consider mentioning the element of how/price if it’s a key part of your differentiation. For instance, if your offer is 30% cheaper than competitors for a comparable service, that cost advantage might be front-and-center in your UVP. On the other hand, if you’re premium, your UVP might focus on the superior quality/outcomes and implicitly justify the higher price. The triangle reminds us that being all things to all customers is not a strategy. A strong UVP stakes out a focused position.
Food for thought:
1. Which customers are you going to serve?
2. Which needs are you going to meet?
3. What relative price or quality level?
The Value Proposition Canvas, developed by Alex Osterwalder is a practical tool to ensure there is a fit between your product and the market needs. It’s essentially a visual framework that forces you to map out two sides: the Customer Profile (what your customer is trying to do and what they value) and your Value Map (how your product creates value for them). The goal of using the canvas is to iteratively refine your value proposition until what you offer matches what the customer truly wants or needs .
How does it work? The canvas is divided into six components (sometimes depicted as a circle and a square):
The idea is to map each pain to a pain reliever, each gain to a gain creator – and see where you have a strong match and where you might have gaps . When the product’s pain relievers and gain creators align tightly with the customer’s pains and gains, you have a compelling value proposition for that customer segment. If you find mismatches (e.g. you offer gain creators for gains the customer doesn’t care much about, or you leave major pains unaddressed), that signals a need to adjust your product or redefine your segment/UVP.
Using the Value Proposition Canvas can be an eye-opening exercise because it forces specificity. For example, it’s not enough to say “our value prop = save time for users.” The canvas pushes you to articulate: save time doing what, how much time, and by addressing what pain? Perhaps the pain is “entering data manually takes hours each week” and the pain reliever is “auto-import feature cuts data entry to minutes” – that level of detail will strengthen your UVP (“Automated data import that saves hours of manual entry every week” is a clearer, stronger UVP element than generically “we save you time”).
How to use this framework: Take a specific customer segment (ideally one of your early adopter segments) and map out their jobs, pains, gains. Then map your product’s features to pain relievers and gain creators. Once done, step back and craft a value proposition statement that encapsulates the biggest job/pain you solve and the biggest gain you provide.
The Value Proposition Canvas is especially handy if you’re struggling to articulate your UVP because it gives you a structured template. It’s also a great tool to check for completeness – have you really thought about the emotional/social gains? Did you consider all possible pains? Are you mapping features to real benefits or just assuming? By working through it, you ensure your UVP isn’t just a marketing slogan, but a well-founded promise tied to actual customer needs.
Let’s look at some concrete examples of strong value propositions from startups in CEE.
Food for thought:each of these UVPs is short, but hints at a larger story. UiPath hints at freeing you from drudgery, Pipedrive hints at a tool built for the rep’s happiness, Grammarly hints at effortless improvement. In your own UVP, aim for that mix of clarity and implied story.)
Now that we’ve broken down what a UVP is, why it’s important, frameworks for thinking about it, and seen some examples, it’s time to craft your own. In the next section, we’ll walk through a step-by-step process to create a compelling value proposition from scratch.
Defining a great UVP is an iterative process that blends research, creativity, and testing. Below is an 7-step process you can follow, from initial customer insights to finally putting your UVP into action.
Overview of the 7 Steps:
Let’s dive into each step in detail:
Before wrapping up, let’s get hands-on with some exercises to further sharpen your UVP and avoid common pitfalls.
To truly internalize these concepts, it helps to roll up your sleeves and practice. Here are five practical exercises you can do (individually or with your team) to craft and polish your value proposition. These exercises are designed to be interactive and insightful – great for workshops or personal brainstorming sessions.
Goal: Create structured UVP drafts that capture all essential elements.Fill in the blanks:For [TARGET CUSTOMER] who [NEED OR DESIRE], [PRODUCT/COMPANY] is a [CATEGORY] that [BENEFIT/RESULT]. Unlike [COMPETITOR/ALTERNATIVE], it [UNIQUE DIFFERENTIATOR].Instructions:Refinement process:
Example transformation:
Team alignment tip: Have each team member fill the template independently, then compare results to check alignment and discover different perspectives*.*
Goal: Test UVP clarity and appeal through realistic user interactions.Create your mockup:Tools to use:
Testing methods:Option 1 - Direct feedback:
Option 2 - Live testing:
Success indicators:
Red flags:
Iterate based on feedback: Use insights to refine your headline, supporting points, or overall positioning before building full marketing campaigns.
Goal: Identify your unique market position and competitive differentiators.
Step 1 - Create a 2x2 grid
Step 2 - Choose your axes: Select two dimensions that matter most in your market:
Step 3 - Plot competitors:
Step 4 - Add yourself:
Alternative method - Feature comparison table: Create a simple table listing competitors vs. key features/benefits, marking who offers what. Look for empty columns only you can fill.
Analysis questions:
Extract your positioning statement: Write 1-2 sentences capturing your unique position
Goal: evaluate an existing UVP against a checklist of criteria.
Create a list of questions:
Goal: Decode successful UVPs to improve your own messaging skills and spark positioning ideas.
Choose your target: Pick a well-known company's UVP, tagline, or slogan to analyze.
Detective framework: For each UVP, identify these hidden elements:
🔍 Target customer:
🔍 Implied need/pain:
🔍 Differentiation strategy:
Analysis examples:
Slack: "A messaging app for teams who put robots on Mars"
Domino's: "30 minutes or it's free"
Wise (TransferWise): "Send money abroad for less – up to 8x cheaper than banks"
Even with a solid process, there are some classic mistakes that entrepreneurs make when defining their value propositions. Here are a few common pitfalls to watch out for, along with tips on how to avoid or fix them:
Bottom line: Draft first, then edit ruthlessly. Remove fluff, ambiguity, and me-too language until you have a razor-sharp statement that cuts through to your audience.
Every successful startup needs a Unique Value Proposition (UVP) at its core. A UVP is more than a catchy tagline – it’s the fundamental promise of value that you deliver to customers, and it underpins your entire business strategy. A strong UVP guides what you build, how you talk about your product, how you position against competitors, and even how you pitch to investors. In early stages, founders often wear many hats, but one of the most critical tasks is articulating exactly why your product is different and worth paying attention to.
Why focus on UVP?
A well-defined UVP becomes a strategic tool that influences everything: product decisions, messaging and branding, market positioning, fundraising narratives, and internal alignment. Like the unseen foundation of a house, a strong UVP supports everything built on top of it. It clarifies your vision and rallies your team around a common purpose. On the flip side, an unclear or generic value proposition can confuse customers and even raise red flags with investors (a vague, buzzword-filled tagline often signals a lack of clarity in vision). By investing time upfront to nail your UVP, you establish a “north star” for your startup’s growth.
In simple terms, a value proposition is a concise statement of the unique benefit your product or service delivers to a specific customer segment. It’s the answer to the customer’s eternal question: “Why should I choose your solution over all the others?” A good UVP is typically a single, clear, and compelling message that communicates:
Not all value propositions are created equal. Some are unforgettable and compelling, while others fall flat. Here are a few hallmarks of a strong UVP:
Next, we’ll dive into some frameworks that can help you formulate your UVP, and then we’ll see real examples and go through a step-by-step process to create your own.
There is no one-size-fits-all formula for a value proposition, but there are proven frameworks that can guide your thinking. Here we introduce three influential frameworks to help you clarify your UVP from different angles: Jobs to Be Done, Porter’s Value Proposition Triangle, and Strategyzer’s Value Proposition Canvas. Each framework offers a lens for understanding how your product creates value in a unique way.
Why do customers really buy your product? The Jobs to Be Done (JTBD) framework, popularized by Clay Christensen, helps you answer this by shifting perspective: instead of focusing on customer demographics or product features, look at the underlying “job” the customer is hiring your product to do. In Christensen’s words, "customers don’t simply buy products; they “hire” them to get a job done" . Every purchase has a context and motivation behind it – a problem to solve, a goal to achieve, or a pain to alleviate. JTBD asks: What is the progress the customer is trying to make in their life or business?
Under this framework, you delve into the functional, social, and emotional dimensions of customer needs . For example, the famous “milkshake” example from Christensen’s research showed that people were “hiring” milkshakes in the morning not just for taste, but to relieve boredom on a commute and to have a convenient, tidy breakfast. This insight led to a better product and marketing strategy for milkshakes (e.g. making them thicker so they last longer during a drive, and marketing the morning use-case).
Food for thought:The JTBD mindset would have you fill in the sentence: “When _____ (situation), customers want to _____ (job to be done) so they can _____ (desired outcome).”
How JTBD informs your UVP: Once you identify the core job (or jobs) your product does for the customer, you can craft your UVP around that. It ensures your proposition is outcome-focused (the outcome being the job accomplished) and customer-centric (rooted in the customer’s context). For example, a ride-hailing service’s job-to-be-done might be “get me from A to B quickly and safely.” A UVP for an early ride-hailing startup might then be “Tap a button, get a ride in minutes – the fastest way to get from A to B in the city.” Notice how that speaks to the job (quick, convenient transport) rather than the technology (it doesn’t say “we have an app-based taxi network,” which is feature-focused).
As you develop your UVP, use JTBD to interview customers or observe behavior: ask questions like “What problem were you trying to solve when you used our product?” or “Think of the last time you [context], what did you do and why?” The answers will be gold for phrasing your value in terms that matter to customers (often, you’ll even pick up the exact words customers use – which you can mirror in your messaging).
Key takeaway from JTBD: Frame your value proposition around the job the customer needs done and the outcome they’re seeking, not just around your product’s specs. This ensures your UVP hits the nail on the head in terms of relevance and clarity.
Food for thought:
Customers “hire” products/services to accomplish a “job.”
Your Mission: Identify the job they need done, the pains they face doing it, and the gains or outcomes they aspire to.
Example: A mother “hires” a meal kit delivery service so she can quickly prepare healthy dinners while juggling a busy schedule. She’s not buying “food” but a time-saving, stress-reducing solution.
Michael Porter, a renowned strategy professor, describes strategy as defining a unique position, and at the heart of a company’s strategy is its value proposition. Porter suggests that a unique value proposition can be identified by answering three fundamental questions (often depicted as the three points of a triangle):
Porter’s “triangle” model of UVP: strategy is defined by which customers you target, which needs you meet, and at what relative price (or cost).
According to Porter, a truly unique value proposition comes from making distinctive choices in these three areas and aligning them. Your UVP essentially boils down to “We serve X customers, fulfilling Y needs, at Z price point (relative to others)”. For example, Ikea’s value proposition can be described via this triangle: Target (X) – cost-conscious young furniture buyers; Needs (Y) – stylish, space-efficient furniture solutions that can be taken home immediately; Relative Price (Z) – significantly lower cost than traditional furniture stores (achieved via flat-pack self-assembly and warehouse stores). All of Ikea’s messaging and strategic decisions align to that UVP (e.g. “Affordable design for the many” is a phrase that captures it).
How to use this framework: Ensure your UVP clearly reflects a choice in who and what – and consider mentioning the element of how/price if it’s a key part of your differentiation. For instance, if your offer is 30% cheaper than competitors for a comparable service, that cost advantage might be front-and-center in your UVP. On the other hand, if you’re premium, your UVP might focus on the superior quality/outcomes and implicitly justify the higher price. The triangle reminds us that being all things to all customers is not a strategy. A strong UVP stakes out a focused position.
Food for thought:
1. Which customers are you going to serve?
2. Which needs are you going to meet?
3. What relative price or quality level?
The Value Proposition Canvas, developed by Alex Osterwalder is a practical tool to ensure there is a fit between your product and the market needs. It’s essentially a visual framework that forces you to map out two sides: the Customer Profile (what your customer is trying to do and what they value) and your Value Map (how your product creates value for them). The goal of using the canvas is to iteratively refine your value proposition until what you offer matches what the customer truly wants or needs .
How does it work? The canvas is divided into six components (sometimes depicted as a circle and a square):
The idea is to map each pain to a pain reliever, each gain to a gain creator – and see where you have a strong match and where you might have gaps . When the product’s pain relievers and gain creators align tightly with the customer’s pains and gains, you have a compelling value proposition for that customer segment. If you find mismatches (e.g. you offer gain creators for gains the customer doesn’t care much about, or you leave major pains unaddressed), that signals a need to adjust your product or redefine your segment/UVP.
Using the Value Proposition Canvas can be an eye-opening exercise because it forces specificity. For example, it’s not enough to say “our value prop = save time for users.” The canvas pushes you to articulate: save time doing what, how much time, and by addressing what pain? Perhaps the pain is “entering data manually takes hours each week” and the pain reliever is “auto-import feature cuts data entry to minutes” – that level of detail will strengthen your UVP (“Automated data import that saves hours of manual entry every week” is a clearer, stronger UVP element than generically “we save you time”).
How to use this framework: Take a specific customer segment (ideally one of your early adopter segments) and map out their jobs, pains, gains. Then map your product’s features to pain relievers and gain creators. Once done, step back and craft a value proposition statement that encapsulates the biggest job/pain you solve and the biggest gain you provide.
The Value Proposition Canvas is especially handy if you’re struggling to articulate your UVP because it gives you a structured template. It’s also a great tool to check for completeness – have you really thought about the emotional/social gains? Did you consider all possible pains? Are you mapping features to real benefits or just assuming? By working through it, you ensure your UVP isn’t just a marketing slogan, but a well-founded promise tied to actual customer needs.
Let’s look at some concrete examples of strong value propositions from startups in CEE.
Food for thought:each of these UVPs is short, but hints at a larger story. UiPath hints at freeing you from drudgery, Pipedrive hints at a tool built for the rep’s happiness, Grammarly hints at effortless improvement. In your own UVP, aim for that mix of clarity and implied story.)
Now that we’ve broken down what a UVP is, why it’s important, frameworks for thinking about it, and seen some examples, it’s time to craft your own. In the next section, we’ll walk through a step-by-step process to create a compelling value proposition from scratch.
Defining a great UVP is an iterative process that blends research, creativity, and testing. Below is an 7-step process you can follow, from initial customer insights to finally putting your UVP into action.
Overview of the 7 Steps:
Let’s dive into each step in detail:
Before wrapping up, let’s get hands-on with some exercises to further sharpen your UVP and avoid common pitfalls.
To truly internalize these concepts, it helps to roll up your sleeves and practice. Here are five practical exercises you can do (individually or with your team) to craft and polish your value proposition. These exercises are designed to be interactive and insightful – great for workshops or personal brainstorming sessions.
Goal: Create structured UVP drafts that capture all essential elements.Fill in the blanks:For [TARGET CUSTOMER] who [NEED OR DESIRE], [PRODUCT/COMPANY] is a [CATEGORY] that [BENEFIT/RESULT]. Unlike [COMPETITOR/ALTERNATIVE], it [UNIQUE DIFFERENTIATOR].Instructions:Refinement process:
Example transformation:
Team alignment tip: Have each team member fill the template independently, then compare results to check alignment and discover different perspectives*.*
Goal: Test UVP clarity and appeal through realistic user interactions.Create your mockup:Tools to use:
Testing methods:Option 1 - Direct feedback:
Option 2 - Live testing:
Success indicators:
Red flags:
Iterate based on feedback: Use insights to refine your headline, supporting points, or overall positioning before building full marketing campaigns.
Goal: Identify your unique market position and competitive differentiators.
Step 1 - Create a 2x2 grid
Step 2 - Choose your axes: Select two dimensions that matter most in your market:
Step 3 - Plot competitors:
Step 4 - Add yourself:
Alternative method - Feature comparison table: Create a simple table listing competitors vs. key features/benefits, marking who offers what. Look for empty columns only you can fill.
Analysis questions:
Extract your positioning statement: Write 1-2 sentences capturing your unique position
Goal: evaluate an existing UVP against a checklist of criteria.
Create a list of questions:
Goal: Decode successful UVPs to improve your own messaging skills and spark positioning ideas.
Choose your target: Pick a well-known company's UVP, tagline, or slogan to analyze.
Detective framework: For each UVP, identify these hidden elements:
🔍 Target customer:
🔍 Implied need/pain:
🔍 Differentiation strategy:
Analysis examples:
Slack: "A messaging app for teams who put robots on Mars"
Domino's: "30 minutes or it's free"
Wise (TransferWise): "Send money abroad for less – up to 8x cheaper than banks"
Even with a solid process, there are some classic mistakes that entrepreneurs make when defining their value propositions. Here are a few common pitfalls to watch out for, along with tips on how to avoid or fix them:
Bottom line: Draft first, then edit ruthlessly. Remove fluff, ambiguity, and me-too language until you have a razor-sharp statement that cuts through to your audience.