The internet is a crowded, competitive place and it’s becoming more and more crowded with each passing minute. As new websites pop up and compete with yours, it’s important that you know how to make your business stand out from the crowd. By crafting a unique value proposition, you can help your ideal prospect stay on your website longer and take more sales away from your competition.
Small to medium sized businesses struggle in this crucial area
Unfortunately, many small and medium sized businesses have not defined a unique value proposition (or UVP), because they either don’t know how important it is or because the cost of hiring someone with expertise seems too costly. However, not having a UVP makes it extremely hard on your marketing department or marketing firm to market your services and products. In addition, businesses without a UVP tend to waste money on trial and error marketing.
Crafting an effective unique value proposition is no easy task.
A unique value proposition is a short, succulent, and concise statement about your business which targets your preferred demographic and states simply what makes you the best choice. In other words: Who do you want to do business with? What is it you do better than your competition? And why should your ideal prospect choose you?
Those questions should create a whole bunch of ideas about why you’re better than the competition and why your ideal prospects should choose you. The hard part is narrowing it down to a simple and effective statement. We suggest the following principles for developing an effective value proposition :
Characteristics of an effective value proposition:
Value proposition is the primary reason why a prospect should buy from you.
- This requires you to differentiate your offer from competitors.
- You may match a competitor on every dimension of value except one.
- In at least one element of value you need to excel.
- In this way you become the best choice for your optimum customer.
- There is a difference between the value proposition for your company and for your product. You must address both (see below).
Principles for expressing a value proposition effectively:
- Ask yourself: “Why should my ideal prospect (the group you intend to serve) buy from me instead of a competitor?”
- Compare your answer with the claims of your main competitors.
- Refine your value proposition until you can articulate it in a single, instantly credible, sentence.
- If you had just 10 words with which to describe why people should buy from your company instead of someone else, what would you communicate?
(Credit for spelling out these principles goes to Marketing Experiments)
Starting with your core business, you should craft a UVP that covers what you do better than the rest. Downloading this helpful worksheet from Marketing Experiments can also help you craft your business’s UVP .
Product lines and services each need value propositions
Once you’ve crafted a UVP for your business, ideally, you should create a UVP for each of your key services or product lines. Each of your key offerings should be able to stand on their own in a competitive marketplace. You know why a prospect should choose you over the competition, now you need to make that easy for your prospect to understand.
Consider what your ideal prospect cares about:
Put simply, there are four main types of benefits that people care about and your offering should fit into one or more of these categories:
- Highest quality - You don’t need to be the Rolex of watch makers to fit this category, but your standard is set by ensuring what you deliver is consistently high-quality.
- Best value - This doesn’t necessarily mean the cheapest. Think JetBlue, they aren’t the cheapest, but for a modest sum a passenger gets frills that even some travelers in first class on other airlines don’t get.
- Luxury or “the in-crowd” factor - Think Apple or BMW. People will pay more for sexy or trendy if it means they can show it off.
- Necessity - Your prospect needs your product/service to get by. It’s not a discretionary purchase, they need it to do their job or survive.
Having a unique value proposition will allow you to convey your message quickly to your website visitors and help your marketing team get the message across on various marketing channels effectively.
If you need help crafting your business’s UVP, we offer affordable, hourly consulting to help you brainstorm and provide valuable feedback which will save you time and money.