5 proven tips to better define your company’s unique value proposition

by Ana Lopez

Opinions expressed by businessupdates.org contributors are their own.

The business world is incredibly competitive – and that’s no doubt why 45% of businesses go bankrupt within five years of opening.

While there are many reasons why a business could fail, one of the biggest roadblocks to success is the lack of a well-defined unique value proposition (UVP). If you can’t effectively communicate to your customers why your company and its products or services are unique from your competitors, you’ll have a hard time standing out.

On the other hand, when you can better define your unique value proposition, you can establish a strong foothold in your niche and make a lasting impression on customers.

Related: Your value proposition is crucial. Here are 5 steps to make sure it resonates.

1. Focus on your ideal customer

You won’t get very far if you don’t understand your ideal customer. Many brands accomplish this by creating buyer personas through market research and gathering insights from their current customers.

The deeper you can dig into your ideal client’s wants, needs, struggles and so on – the things that “put them to work” – the easier it will be to identify the types of messages that will have the most impact for them.

2. Understand the core elements of your unique value proposition

A successful UVP focuses on the benefits of your product or service, but also on how you stand out from your competition. These elements ultimately communicate the value of your brand and why it would be worthwhile for your ideal consumer to do business with you.

Start by listing the benefits of your product or service. How do you solve the specific problems your ideal customer faces on a regular basis? Next, identify the ways your offering differs from the competition. This will likely require extensive market research, but it could be anything from more affordable pricing to additional features not found in competitors’ products.

With each of these lists, you should consider how the unique aspects of your product or service add value to your customers. This then becomes the core focus of your messages, and your next step is to communicate that message in a way that makes sense and resonates with your target audience.

Related: Developing a Winning Value Proposition (Infographic)

3. Frame your UVP with storytelling

At my marketing agency, we use storytelling to pitch our clients because frankly, while numbers can be compelling, they’re also boring. After working on the previous two tips, you’ll be in a good position to tell a story where the customer is the hero and then highlight what you’ve learned from your own challenges and how it can help them with the problem that they have. try to solve.

Entrepreneurs should try to frame their UVP in a storytelling format to present it in a way that will really engage the customer. Customers don’t want to hear how your team went about doing what they set out to do. But they will connect with relatable stories about your own struggles and lessons learned and how they can be applied to their lives in the form of your product or service.

4. Identify what you’re not doing

One way to better differentiate yourself from others in your niche is to take the time to define what you don’t do. These could be the things you’re not good at or the things others in your niche do that you actively dislike and avoid.

Related: What’s Your Value Proposition?

5. Test and repeat

When it comes to writing books, authors are sometimes advised to take a hard look at their work 10 designs before their work can be considered completed. Think how much time and effort it would take to continually revise a 300 page novel. Your UVP may not need that much revision time, but it certainly deserves its share of testing, reviewing, and optimizing before it becomes your main marketing message.

Ideally, you enlist the help of your target audience in revising your UVP. Use their impressions and feedback to determine how you can improve and make your reporting clearer. A/B testing multiple versions of your UVP can also be helpful to see which message resonates best with customers.

If developed properly, your unique value proposition can be so much more than a company statement. It can be the very core of your brand identity that drives your decision making and how you market yourself to your target audience. By developing a compelling UVP, you create a much more compelling sales pitch that puts your business on track for long-term success.

Related Posts