DEVELOPING YOUR UNIQUE VALUE PROPOSITION
I’m positive you’ve all heard about a “unique value proposition” or a “UVP” before… If not, in short this is the promise that you are giving to consumers. It is your solution summarised. It is a statement that is consistent that explains to consumers the BENEFIT that you offer, WHO it will benefit, and WHY you are the absolute best choice for them.
As your business develops, your value proposition will be what defines the purpose of your business AND your relationship with your clients. It should ALWAYS be clear and concise.
To create an effective UVP, you need to know and understand your target demographic.
Who are your customers? What do they care about? What is the problem that they have, that you can solve? Why are you the BEST business to solve that problem? What benefit will these customers gain from working with you?
When you understand your clients needs, values, and wants you are going to be in a position to create a value proposition that actually appeals to them.
Why Is a Value Proposition Important?
Your UVP doesn't need to be something you share directly with your customers as a statement or as a part of a conversation, but it should form the basis of every product or service. It should also form the basis of your marketing strategies.
For example, if you are a digital marketer, your value proposition could be:
Clients who work with me generate REAL and convertible leads, by a minimum of 30% within the first month and are expected to experience an increase from there. They accomplish this without working 80+ hour weeks or sacrificing their personal lives and time with family.
This type of value proposition includes clear results that benefit customers. It also has the ability to serve as a guide for your business decisions.
It tells you what type of services to focus on (digital marketing), what clients you want to work with (time-poor business owners in a plateau), and what important information your marketing should include (take your time back and still grow your business).
THREE areas to cover in your UVP:
A value proposition is made up of three components:
1. Your target customer. Clearly define the people who will benefit from your service/product and include their values and needs!
2. The problem you solve. What solution are you offering to your ideal clients? How will this solution impact customers' lives, what is the outcome of their investment in your product/service?
3. What sets you apart. What makes you any different to your competition? Why should customers choose you instead? Consider your experience, price, results, connections, or any special skills.
If you are stuck on any of these areas, spend time doing some market research to get super clear on your target demographic.
TEST YOUR UVP!
Having a very clear value proposition can help your business to grow. When you have a vague UVP or a confusing message it can lead to resources being wasted, and miscommunication.
To create an effective value proposition, ask yourself:
1. Is it relevant? What you are focusing on should matter to your target market.
2. Is it believable? Your message should be not only compelling but realistic.
3. Can you defend it? You must be able to offer proof that backs up your statement.
4. Is it flexible? Leave room for your business to grow and change without losing ground with customers.
5. Is it emotional? Your prospects and customers have to connect with you emotionally in order to feel compelled to make a purchase.
For every business, understanding both your customers goals as well as your own is really the key to creating a unique value position that puts you in a position to achieve growth.