Don’t “Customer Value Proposition” and “Unique Selling Proposition” mean the same thing? What’s the difference and why are they important for a brand?
“Quality in a service or product is not what you put into it. It is what the client or customer gets out of it.” – Peter Drucker
We have all heard of the term Brand USP (Unique Selling Proposition) but many senior leaders I have spoken to do not give sufficient attention to CVP (Customer Value Proposition). This is normal as we tend to build a business based on what our product/service can provide for the target audience without caring much about what values they need to simplify their lives.
Below is a list of the differences between both and how they serve different purposes and focus on distinct aspects of a product, service, or brand.
Customer Value Proposition (CVP)
- > A CVP is the unique combination of benefits and values that a product or service offers to its target customers.
- > It focuses on what the customer will gain or the problems it will solve by using the product or service.
- > CVP addresses the emotional and functional benefits that a customer receives.
- > It often considers elements like quality, price, convenience, customer service, and overall experience.
- > CVP is customer-centric and aim to demonstrate how the product or service meets the customer’s needs and desires.
Brand Unique Selling Proposition (USP)
- > USP is the specific, distinct characteristics of a product or service that differentiates it from competitors in the marketplace.
- > USP is often based on features, attributes, or qualities that make a product or service stand out and are usually used to highlight a single, compelling reason why a customer should choose it over alternatives.
- > It is designed to create a competitive advantage and can be used in advertising and marketing campaigns.
- > USP is more focused on the unique and distinctive attributes of the product or service rather than the overall value it provides to the customer.
Do not neglect the importance of identifying CVP
In summary, CVP focuses on the broader value and benefits a product or service offers to customers, including emotional and functional aspects, while USP is more specific and highlights the unique features or qualities that make a product or service different from the competition. Effective marketing often combines both CVP and USP to create a compelling and persuasive message that resonates with customers and sets a brand apart from its competitors.
Avante Strategies has developed a systematic framework to uncover your business’ CVP and how to prioritize them. Contact us for a complimentary 45 minutes chat to explore more.
