Driving Business Growth: The Power of a Strong Value Proposition
Be it a small business owner or the CEO of the next big e-commerce startup, they need a clear means of expressing their product’s value to the target market.
What Is a Unique Value Proposition?
A unique value proposition (UVP), also known as a unique selling proposition (USP), is a statement that clearly expresses the product or service’s distinct selling points to potential customers. A UVP statement conveys more information than a tagline or slogan. It explains the specific benefits the product offers, why the target customers should choose the product over the competition, and how the product resolves their pain points.
A business typically displays its UVP on its website homepage and incorporates it into a marketing strategy.
How to Create a Unique Value Proposition in 4 Steps
Entrepreneurs while creating the unique value proposition (UVP) must ensure to convey themselves in the mind of the consumer.
1. Identify the ideal customer.
Business owners should create a buyer persona profile of the ideal customer to whom they are marketing their products. If they have more than one type of buyer persona, they need to create a different UVP for each persona. For example, a mattress company could sell their mattresses both to personal homes and to hotels. An individual buying one mattress to fit their personal specifications has different needs than a hotel chain buying mattresses in bulk that must appeal to all their customers—so it would be necessary to have a different UVP for targeting each customer.
2. List the product’s benefits, value, and how it stands out.
Once the business owners have identified their ideal customers, it’s time to generate the information they need to piece their UVP statement together. They should start with listing out the benefits the product will offer to the target audience. Next, they need to determine the value the customers will receive from the benefits. Lastly, capitalizing on the unique value proposition (UVP) by identifying the ways that the product is different from its competitors.
Business owners must make sure all these topics are covered in their UVP statement.
3. Focus on clarity and specificity.
The next most important part of writing a UVP is to ensure the buyer can quickly and easily understand the message. To accomplish this, entrepreneurs must use straightforward and specific language. Avoiding use of technical jargons, and explaining the product’s unique value in language the target market will connect with.
4. Test and optimize your UVP.
Testing the unique value proposition (UVP) is essential to find out its effectiveness. For this, the entrepreneurs must assemble a group of unbiased people who are unfamiliar with the product and have them read the UVP. Following that, the initial impressions must be collected and they should inquire the people about their understanding of the three core elements of a UVP (the product’s benefits, value, and how it differs from the competition). Using their feedback, the entrepreneurs must revise and improve their UVP.
What is the best value proposition?
There are two sides that need to understand about the best value propositions: Entrepreneurs, and their customers. First, it is of critical importance for business owners to know what are their value propositions. If they don’t, they can’t expect their ideal buyer personas to choose their products or their company in general. A compelling example unique value proposition in marketing is the difference between making a sale. Also, it is crucial that the potential customers know the key selling point.
If they don’t understand that either means:
- Entrepreneurs don’t know what is value proposition.
- They know, but they are failing to communicate the value proposition message to their target audience or target buyer.
- They know, and they are communicating, but the target audience fail to find the value proposition unique from the competition (which means the business owners have failed to create a strong UVP).
So, ideally, entrepreneurs must know what their unique value proposition is, and they will have to focus that in their marketing and sales efforts. That will result in the potential buyers being aware of the value proposition. In fact, communicating the B2B value proposition is one of the best marketing tactics in marketing agencies business owners can implement, as it works on its own.
The Big “Why”
The value proposition strategy is not just about the easy-to-understand product services businesses offer and the value proposition of product pages they sell, no. It is that “why” behind everything, a much deeper reason. It is the “cause” that is driving the business. The value propositions are a unique way that businesses solve their potential customer’s problems as no other else does. When people experiencing challenges resonate with the UVP, they automatically take the decision.
The Big “How”
The value proposition will also answer the question, “How do the products and services and value proposition help other people solve their problems?” This is a huge question, as it is exactly what customers want to hear. If entrepreneurs are able to provide a clear answer to this question, they appear as “the one” in customer’s eyes, and they will immediately hire to keep the promise and solve it.
A Promise of Value
The value proposition messaging concisely highlights how and why the company is better than the direct competitors. This approach to leveraging the value proposition canvas most effectively should be in one or two sentences emphasizing the company’s features, benefits, and customer experience addressing the wants needs, and problems the potential customer is trying to solve.
Refining the value proposition canvas will
- Ensure to identify and articulate the company’s unique sample value proposition
- Enables business owners to create a clear, concise, and compelling message for customers and prospects
- Makes it easy to track the success of the marketing efforts by measuring how well they resonate with customers
- Provides a simple framework for testing new value proposition
The salespeople should focus their selling efforts on these factors. Good salesman actively listens to customers’ comments to confirm their understanding of their needs and determine their level of satisfaction with current products or services. Communicating is more than the ability to use compelling words when describing products or services to customers. It means asking the right questions, listening and demonstrating understanding when the customers speak. Also, directing the discussion and focusing on the customer’s priorities and interests. Salespeople should never stop asking questions or presume they understand the customer’s business good enough that they don’t need to check their assumptions when developing solutions.
If the salespeople develop a strong reputation for being responsive, innovative and reliable, they’ll be in demand, regardless of the competition or economic climate. Determining a product’s value can help entrepreneurs price appropriately, get a better understanding of how the target audience perceives it and decide whether the product requires additional enhancements to meet customer expectations