How to Define Your Unique Value Proposition
June 27, 2017 4:00 pm
posted by Tamara Wamsley
Defining your Unique Value Proposition
Most people have heard the term unique value proposition (UVP) but many manufacturers do not realize how important defining it is to their business. The UVP of your business clearly defines how you add value to your customers. It should be summarized in one short statement that says exactly what you do to help solve a problem for your customer and how you are different and/or better at doing it than anyone else. The UVP is extremely important whether you are selling products directly to consumers or to other businesses.
Great Customer Service
Many businesses use “superior customer service” or as their unique value proposition but I disagree with this practice. This feels like a default UVP to be used when you have nothing else setting you apart from the competition. I see great customer service as an expectation that your customers already have. Customer service will not be viewed as unique unless you are really blowing it out of the water. Simply meeting this expectation does not set you apart from your competition. I will concede that your customer might choose to buy from you because you have better customer service but, as soon as a mistake is made you will be left with nothing. Great customer service is wonderful…but you need more to really create a loyal following.
UVP and Change
Smart companies keep an eye on their markets and their client needs and pivot to fill those needs when necessary. If you keep up with what your clients need, you can be their supplier for a very long time. When companies get stuck in what they have been doing, they get left behind. One of my favorite examples of this is in the paper industry. I think we can all agree that the paper industry has been severely impacted by the digital industry. Many companies in and around the paper industry have been forced to close their doors. Publishers, newspapers, books, magazines, even catalogs have changed. Everyone related to paper has felt the shock waves. But, there is a small company who carved out a niche within the paper industry. They supply a specific kind of paper to a small niche of people who needed it….and guess what…they are still in business and doing very well.
3 Steps to Defining Your Unique Value Proposition
The goal of your UVP should be to identify a segment of your market that needs something…a product or a service…and communicate to that market how you fill that specific need.
How is your company different? How is your product different? What are your strengths? Do you offer a brand new product? Do you have better technology? What sets you apart from everyone else?
Listen to your clients. What do they say that they need? How do you (or could you) fill their needs? Who are your best customers? Take a look at the 80/20 rule and see what you can do that is specifically for your top twenty percent.
Why do you make your product? What is your company story? Does your product have a story that people would find interesting? Can you connect your story or product with your clients emotionally? Why does your company exist? How are you helping your customers?
Once you define your unique value proposition, share it throughout your organization. Use it in your marketing and sales communications. Promote what you do that is relevant to your customers and how you are different from your competition can strengthen your company and directly impact your sales.
Want help defining your unique value proposition? Contact FASTLANE: