The two most important elements to define a powerful Unique Value Proposition statement are to communicate why a business is different from what is already available on the market, and to make sure that the difference matters to the target customers. And this is where a customer-centric competitive analysis comes to rescue.
A competitive analysis is a tool that shows where a new business idea or a new product is positioned against competitors. It is able to highlight strengths and weaknesses, and helps establish what makes a new product unique.
However, the key thing is: unique is the eyes of who?
One of the ways to compile a competitive analysis able to inform an effective Unique Value Proposition (or UVP) statement is to use the validated customers needs that the new business or new product is willing to solve as a foundation. As Ash Maurya puts it, “the key to unlocking what’s different about your product is deriving your UVP directly from the number-one problem you are solving. If that problem is indeed worth solving, you’re more than halfway there already“.
So these are the eight steps I recommend to follow to compile a meaningful customer centric competitive analysis: