The Unique Value Proposition
Your value proposition is the basis of your competitive advantage. It articulates why customers would want to buy your products instead of a competitor’s. This makes it an essential conversion factor for your business.
If you are starting or are looking to re-brand, you must think about what sets your business apart from competitors in the same space. Coming up with a unique value proposition allows you to create a strong foundation for your marketing strategies and messages for engaging new customers.
What is a Value Proposition?
It refers to the value your company promises to deliver to a customer should they choose to buy your product. It’s also a statement or a declaration of intent that introduces your company’s brand to consumers. It “boils down” what your company stands for and why it deserves a customer’s business.
You want your unique value proposition (UVP) to communicate clearly what makes your product or service valuable, how it works, and why it is better than the rest. Your UVP should be simple – think of it as an elevator pitch that someone with no prior knowledge of your existence would understand immediately. It should also be front and center on all your product promotion campaigns.
How to Create a Unique Value Proposition
Every business in your field is actively vying for attention. So consumers hear a lot of noise. Ergo, by developing an easy to understand and remember value proposition, you can cut through the clutter and turn your audience into loyal customers. You want consumers to immediately associate a product (or a service) with your brand.
Sometimes you can easily land on the perfect value proposition, but oftentimes, it takes some time and legwork. However, for your UVP to be meaningful, you must know your target customers, your business, and how your product (or service) fits into the consumer-driven world.
While you may already have a UVP in mind, never settle on it before doing some market research and testing. What’s more, keep testing it over time as your business grows to ensure that it captures your customer’s pain points.
Below are five steps to help you develop a value proposition that sets you apart from your competition.
Identify Consumer Needs
Identify any unique value that your target customer wants or needs, and only you provide. This should be the biggest selling point in your UVP. You also need to identify and outline your target audience by role (for instance, CEOs, sales managers, moms, etc.). This allows you to capture specific needs instead of coming up with a blanket solution.
Focus on Your Target Customer’s Benefits
Most prospects and customers do not want to hear about the features of your product or what complementary services you offer unless such information answers their question “what’s in it for me?” Benefits can be a powerful value proposition that summarizes the emotional appeal of your product (or service) by speaking directly to customer needs.
Capture Individual Customer Value Propositions
As stated before, a blanket value proposition that attempts to fit everyone into one class is a big NO. You must acknowledge that each customer in your target audience has different wants, needs, and business problems. Therefore, you have to customize your value propositions to address each need or challenges that you have identified in step one.
Communicate Your Proposition
When delivering your value proposition, listen, analyze, and engage with your target audience. This allows you to cultivate emotional appeal by better understand their motivations, needs, or demands.
Streamline your value propositions across all your communications platforms – both internal and external. This includes your website, datasheets, video content, social content, internal messaging documents, and brochures. Remember that consistency is key.
Measure the Effect of Your UVP
Throughout the lifetime of your product, you must engage, listen, and respond to your customers. Doing so allows you to have immediate (and much needed) feedback on the effect of your UVP. By keeping you UVP up-to-date, you will improve your customer relationships and, subsequently, their loyalty, repeat business, and referrals.
An effective value proposition is measured by improved customer relationships and increased sales. As your business grows, you should incorporate new PR and marketing tools such as web analytics, email marketing campaigns, social media metrics, and media coverage.
The Bottom Line
Developing a compelling and unique value proposition should be a priority in your product promotion strategy. When properly formulated, executed, and used, a strong value proposition will deliver a competitive edge, market credibility, increased sales, and ultimately, ROI. Creating a customer-oriented UVP will set you apart from your competition and allow you to engage potential customers while removing uncertainty in a consumer-led space.