Creating your truly unique value proposition

The Canadian financial advisory landscape is thriving. According to a recent Globe and Mail article , an estimated 100,000 people are licensed to sell financial products in Canada, and that number is likely to grow as the country’s population booms. With such fierce competition, it’s more important than ever for advisors and other wealth professionals to carve out a niche for themselves. But how? The answer may lie in formulating an effective and unique value proposition (UVP).

Your UVP is a succinct, compelling statement that sums up how your services outdo those of your competition. It provides a clear response to the question every potential client asks: “Why should I choose you?”

To uncover your UVP, start with a little introspection. What are your strengths and specialties? Maybe your expertise lies in retirement planning, tax planning or ESG investing. These areas can form the backbone of your UVP. For example, “Specializing in ESG investment strategies for conscientious investors.”

Next, consider your target demographic. Are there specific client groups, like healthcare professionals or small business owners, to whom you can offer bespoke services? Catering to a unique audience can significantly differentiate your practice. For instance, consider: “An Investment Advisor for Canadian small business owners.”

Understanding your competition is also vital. That’s why it’s a great idea to consult industry resources and competitors’ websites to gauge how you measure up against your peers. Pay special attention to both their offerings and shortcomings and how you may offer services or expertise above and beyond what they do.

Your UVP should be client-focused. Studies suggest that trust is one of the most significant factors clients consider when choosing an advisor. So, it might make sense to highlight your dedication to your clients’ financial wellbeing in your UVP.

Three dos and don’ts for creating your very own UVP

Do:

1. Specialize – Find your niche and leverage it.
2. Understand your competition – Identify their offerings and gaps.
3. Prioritize trust – Highlight your commitment to your clients’ financial security.

Don’t:

1. Be vague – Your UVP needs to be precise and compelling.
2. Overlook client needs – Ensure you understand your target audience’s unique financial goals.
3. Overpromise – Be realistic about what you can deliver to avoid disappointing clients.

And here are a few more tips that can help you discover your UVP

• Evaluate your past experiences: What were your most successful cases? What client needs have you met exceptionally well?
• Solicit client feedback: Ask your clients why they chose you and why they stick with you. Their responses can shed light on unique strengths you may not have considered.
• Identify your passions: The areas you’re most passionate about can often become your areas of expertise.

By leveraging your expertise, understanding your competition and focusing on client needs, you can create a UVP that genuinely resonates with your target audience.

Oh, and one more thing … UVP versus USP

You may be wondering what the difference is between a Unique Value Proposition (UVP) and the more commonly used Unique Selling Proposition (USP).

Both are marketing concepts used to differentiate a product, service, or company from its competitors. However, they have slightly different focuses:

• A USP outlines how a product or service is unique or superior compared to those offered by competitors. It primarily focuses on the features, advantages or characteristics that set a product, service, or company apart. For instance, a USP might highlight a unique feature, exclusive product offering or unrivaled client service.
• A UVP goes beyond just product or service characteristics. It focuses on the unique value or benefit that clients can expect to receive by choosing your product or service. The UVP typically emphasizes the outcome or result for the client, rather than the features of the product or service itself.

For example, a USP for an advisor might be, “Over 20 years of experience in the finance industry,” while a UVP could be, “Helping you achieve financial security and peace of mind through tailored investment strategies.”

In short, a USP highlights more unique features or offerings, while a UVP emphasizes the unique value or benefit a client can expect from you and your firm.

Patti Houghton

AVP, Marketing

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