What is a Unique Value Proposition and why is it so important for your business?

What is a Unique Value Proposition and why is it so important for your business?

A Unique Value Proposition (UVP) is also known as;

• Unique Selling Proposition
• Market Dominant Position
• Unique Selling Point
• Point of Difference (POD)
• Unique Perceived Benefit (UPB)
• Competitive Advantage
• Many names for the same thing. What exactly is a UVP?

It is all of the following;

1. The reason why your product / service is different from and better than that of the competition

2. It is what makes your business unique

3. It's your "Competitive Edge"

4. It is how a business can distinguish themselves from competitors

You must be aware of your UVP. Your customers must be aware of your UVP. Ultimately, it is the reason why someone would spend their money with you over everyone else. It is all the value (read more ) your business is able to put on the table.

Your UVP will drive your business strategies

say what you sell, not just product or service characteristics

Look at your UVP as a "peg" on which to hang your marketing strategy.

How do you solve your customer's problems? What benefits do you offer? What sets you apart from the rest?

Your business can peg its UVP on;

Efficacy: How well it works, usefulness & capability to produce the desired result.

Speed: How soon does it work, how long will you have to wait?

Reliability: Can you depend on it to do what you want?

Ease of use: How much efforts does it require?

Flexibility: How many things does it do?

Status how does this affect the way others perceive you?

Aesthetic appeal How attractive or pleasing is it?

Emotion: How does it make me feel?

Cost: How much do I have to give up to get it?

Use your UVPs to your advantage. Establish a market position that sets yourself apart from the competition.

How to find your USP

There are so many ways to create value. So how do you know what to focus on?

To be successful and make money you must;

• know and understand your customers
• understand the market(s) you are targeting

Only when you know this can you offer useful and desirable things.

"Value is everything that your customer is willing to pay for"

1. Know your customer
2. Understand your market
3. Offer them what they consider valuable

Make your business thrive

1. Put yourself in your customer's shoes

What problem are you solving for them? What are their needs and wants? What could make them come back again and again and ignore your competition? The answer might be quality, convenience, reliability, friendliness, cleanliness, courtesy or customer service. Understand the characteristics that customers value.

2. Don't only focus on price

Price is never the only reason people buy. If your competition is beating you on pricing because they are larger, you have to find another sales feature that addresses the customer's needs. Build your sales and promotional efforts around that feature. Offer value (read more ).

3. Understand what motivates your customers' behaviour and buying decisions.

You need to know what drives and motivates customers. Go beyond the traditional customer demographics, such as age, gender, race, income and geographic location that most businesses collect to analyse their sales trends.

4. Uncover the real reasons customers buy your product instead of a competitor's.

As your business grows, you'll be able to ask your best source of information: your customers. You will be surprised how honest people are when you ask how you can improve your service. If your business is just starting out, you can "Shop" your competition instead.

Make your product / service stand out- even in a market filled with similar items

Typically important criteria

• Price
• Quality
• Range
• Website appearance and navigation.
• Ease of ordering
• Speed of delivery
• Reliability
• Customer Service

Clear your mind of any preconceived ideas about your product or service and be brutally honest. What features of your business jump out at you as something that sets you apart? What can you promote that will make customers want to select your business? How can you position your business to highlight your USP?

Establish a UVP, make sure that the market knows about it!

Famous examples of UVPs

• Avis’ “We’re only number two. We "try harder” campaign.
• Domino’s “30 minutes or it’s free” promise.
• FedEx’s “When it absolutely, positively has to be there overnight.”
• Southwest’s claim to be the lowest-priced airline.

How to write your own unique value proposition

Thinking about the following two questions:

• What makes you valuable?
• How can you prove it?

1. The most straightforward approach to write a unique value proposition:

“We help [X] to [Y] by [Z]”

2. Another template for writing a value proposition:

“For [target customer] who [needs or wants X], our [product/service] is [category of industry] that [benefits]”

All UVPs should:

• Be clear and concise.
• Use the everyday language of your target audience.
• Clearly define what you offer.
• Explain how you relieve a pain-point for people.
• Be prominently displayed on your website and customer touchpoints.
• Explain what sets you apart from your competitors.
• Make your product/service easily discoverable with search engine optimization (check out these apps to improve your SEO).
• Assertive
• Focused on what your customers value
• More than a slogan