Having a unique value proposition is essential to the success of your business. In today’s competitive age, if your business fails to clearly communicate your Unique Selling Point (USP) or your Unique Value Proposition (UVP), it will always stay behind the competition.
A unique value proposition is what makes your business different from your competition. It is the reason why your customers should prefer you over others. It is essential for every business. Irrespective of what you sell, you need to have something unique about the business that differentiates you from the rest. Extraordinary Customer Service, Innovative Packaging, 24x7 customer support, or anything that nobody else in your sphere provides. Great companies like Tesla and Apple all have a distinct UVP that sets them apart from the competition.
If your business solution is based on an app, then developing a UVP is more difficult. Not only difficult but sometimes costly. To create a unique value proposition, you will have to make changes to the whole design of your app - that is going to cost you a ton of money. These costs are obviously not included in your mobile application development cost. So, you need to consider this cost factor when deciding on your UVP and the strategy to market it.
Having a UVP will set up a foundation for your business’s success. In this guide, we will educate you on how to create a unique value proposition. You will learn the 5 ways you can do it for your business/startup.
As stated earlier, a unique value proposition is the differentiating factor of your business. It is what makes your business stand out from the competition. It is what tells the customer why should they prefer you over others.
Remember, it is not a statement like the mission or vision statement. It is not a marketing campaign. A UVP is more like a vibe that your product/service gives to its customers. A unique value proposition is identified by the customer themselves. You, as a business, only need to modify your product or service in a way that reflects your UVP in the best way possible.
After we have established the importance of having a Unique Value proposition, it’s time that we talk about creating a UVP for your business.
As we’ve discussed, it is neither a statement nor a marketing campaign. It is rather a constant product strategy that helps your firm position itself as the best alternative in the eyes of the consumer.
Here, we have listed 5 tips for you that will help you create a UVP for your business. It will help you come up with product management and marketing strategies that will, in turn, help you market the unique selling point of your business. Think of these ‘ways’ as the things to keep in mind while coming up with a strategy for your UVP.
As the title suggests, here are the 5 ways to create a unique value proposition:
The first stepping stone in the process is to clearly identify your target market. You are working towards finding out the differentiating factor of your product or service, and that is not possible if you don’t know your customers.
The data and information about your consumers will let you think in their way. You will get a chance to see your product or service from the eyes of your customer if you specify/identify your target audience.
Go out and do research about your customers. Learn about their taste and preferences, their demographics, and their socio-cultural life. This way, you’ll identify the pain points of your customers quite effectively.
If you do not already have an existing customer base, it will be even simpler to identify a target market. You just have to do research on who needs your product or service. Find out about the people who have the problems your product/service solves, and boom, they are your target market.
Once you have identified your target market, it is now time that you get to the real dirt. The real essence of a unique value proposition is how does your product provides benefits that the customer cannot get anywhere else?
So, in order to create a sound strategy for marketing your UVP, you need to first list down your products’ benefits, value and how does it stand out from the competition. In order to do that, you need to assess your product and your competition(if any). If you’re operating in a market, where there are no other firms, you need to evaluate your offering to find out the benefit that stands out from all others.
Now that you have identified the target market, and the exclusive benefits that only your product/service provides, connect them with your company mission.
Having a company-wide mission and vision is an essential part of running a sustainable business in all parts of the world. No matter how small your business is, you must have a mission and a vision that drives your efforts. You need to clearly define what you stand for.
And, for effective marketing of your UVP, you need to align it with your core values or your company mission. By doing that, you provide a clear statement for your customers. It tells them what you stand for, and that you actually are working towards achieving your mission.
Remember, there is only one UVP that will drive your success. For a product, it is possible to have multiple benefits that nobody else provides, but UVP is all about that one thing you do at your best. Therefore, When you are trying to design your UVP, craft a single message only.
For your UVP, you must gather information from everywhere. If you’re into the service business, or own an app, it doesn’t mean that you cannot get inspiration from FMCG giants like P&G. Explore all the businesses, all the customer segments, and all the markets.
Get inspiration from everywhere and then implement the solution that best fits your product or service.
Every business, irrespective of size and nature, needs a UVP to stay ahead of its competition. But, if this statement fails to convince you, here are the 3 reasons why your business needs a unique value proposition:
The first reason why your business needs a value proposition is that it is the first thing that your customers are gonna see. Take it this way, what is the first thing that you notice about Apple’s iPhones? It’s most probably the camera quality. That is their UVP. No other smartphone matches them at the camera quality. And, it is the first thing that Apple customers see in the latest iPhone every year.
Another example is Google Workspace tools. The first thing that its customers see is connectivity and collaboration. No other word-processing tool matches them in this. Therefore, a UVP is the first thing your customers are going to see.
The above-mentioned examples are of established businesses, but having a UVP helps your business at every growth stage.
Having a UVP not only helps you stand out from the crowd but also enables your business to understand your audience better. When you understand your target audience, you can create content such as infographics, videos, ebooks, or campaigns that get the maximum engagement.
For example, if you own a restaurant, not knowing about the tastes and preferences of your customers will be a complete disaster. How do you plan on becoming your customer’s first choice if you don't even know about their taste? This is where having a unique value proposition helps you out. If you have clearly identified your UVP, it will be easier for you to identify who can and who should be your customer.
Having a better understanding of your target audience and increased engagement on your campaigns/content are the major signs of sustainable growth. In today’s competitive business world, to stay ahead of your competition, you need to have a deep understanding of your audience so that you can drive maximum engagement.
Last but not least, this is indeed the biggest advantage of having a UVP. It helps you create a strong differential between you and your competitors. The sustainability and success of the business depend on how well it can deal with its competitors and their strategies.
A unique value proposition will set your business apart from the competition, providing you with a sustainable competitive advantage that will drive your future success.
Having a unique value proposition is essential to the success of all your campaigns and/or content. It helps you gain that competitive advantage that will help you stand out from the crowd.