Why do your customers buy from you? People exchange money for things that are of value to them. Companies that do well in the marketplace have a clear idea of the value they deliver — and they know how to present that value in a way that their competitors don’t.
Your unique value proposition (UVP) describes the value you offer customers that they can’t get elsewhere. Your UVP will be a guiding light for your company now and into the future, ensuring you stay in alignment with what your customers want. While your UVP may shift slightly as new players enter the marketplace, its core will remain constant because it’s built on the intersection of your company’s strengths and a deep need that your customers have.
Your UVP describes:
- Why your target audience should hire your company or buy from you
- Precisely how your company or your products help your target audience
- How you deliver that help in a way that’s different from your competitors
Even though your UVP is a short statement of only a few sentences, it can be challenging to identify. In a global marketplace, the actual goods or services that any company offers aren’t unique — unless you happen to be selling a new technology that’s truly never been seen before. If you’re struggling with how to differentiate, read on. In this article, we’re sharing 4 steps to uncover your true Unique Value Proposition.
What a UVP is Not
Before we dive in, note that a UVP is not about your product or service being the best. Just as it’s nearly impossible to have a product or service that delivers truly unique value, it’s also nearly impossible to have a product or service that is the absolute best in the marketplace. Even if you did have the best product or service, you’d quickly realize that mediocre products and services outsell better ones all the time — because of how they’re delivered.
1. Identify the Help Your Products or Services Provide
First, you need to know exactly how you help your customers. Go beyond the features of the products and services to describe the benefits that customers receive when using them. For example, the features of your services might include that you use the latest technology, while the benefits might be that your customers are able to get in and out of the office more quickly with the speedier equipment. This list will be similar to the lists your competitors would create.
2. Consider All the Things Your Target Audience Values
Next, brainstorm a list of all the things your target audience values. The things on this list may or may not be related to your product or service. For example, your list may include:
- Saving time
- Being healthy
- Having fun
- Meeting others like them
- Making a difference in the world
3. Look at the Intersection of Your Products and Services and the Items on Your List
Now, create a new list that combines your products and services with each item on your list from Step 2. Avoid overlapping the benefits that you identified in Step 1, since you are looking for a new combination of values that doesn’t currently exist in the marketplace.
For example, if your business is a coffee shop, maybe you could focus on a niche audience. You could host events specifically designed for this audience so they could meet one another. Maybe this niche audience also values health, so instead of selling coffee cake and muffins alongside your coffee, you could sell superfood-rich, healthy treats.
Consider all the combinations of how your products and services could intersect with what your audience values. Once this list is created, mark a few that align with your company’s strengths.
4. Don’t Be Shy — Let Your Personality Shine
Successful companies tend to have clear personalities. Your brand may be intelligent, happy, witty, caring, snarky, or some other identifiable trait. Your company personality may serve as its own differentiator, especially if your industry tends to all lean one direction and look the same. For example, if you have an accounting firm, a casual or snarky brand personality would stand out.
Your brand personality may complement one of the combinations you discovered in Step 3. In this case, it serves to even further differentiate your business, making it even tougher for competitors to snatch away your customers.
While it takes some time and thought, uncovering your UVP pays big dividends. Your business will no longer be just one among many — it will stand out and create a loyal following.
Want to learn how our SolutionLabs help clients differentiate their product idea to claim a unique spot in the marketplace? Get in touch.