Member Tip: Is Your Unique Value Proposition Doing Its Job?

Your business needs a unique value proposition (UVP) to differentiate you from your competition and to get you more customers. If you don’t have one, or you have one that’s not working, the foundation of your marketing is shaky at best.

The problem with creating a UVP begins with the name itself. It’s smothered in marketing garbage lingo. It turns people off. No potential customer will ever ask you “What’s Your Unique Value Proposition?” before making a purchase, but they will ask you what makes you different and that’s what you have to concentrate on when defining this concept for your business.

Unique-value-proposition

What Makes Your Business Different?

Most companies are quick to say what differentiates them from their competition. Usually, it’s service or quality. For the most effective UVP, it must be two things – valued by your ideal customer and hard to replicate by your competition. While most customers value good service, every one of your competitors probably believes they (too) are providing excellent customer service, so it’s not a strong differentiator in the market unless you bolster it with specifics that can’t be imitated.

How to Stand Out

Regardless of what you call it, a unique value proposition is all about standing out. If you’re lucky you do something no one else does. But in today’s crowded global markets, it’s harder to find something that no one else is doing. Instead, you need to discover, and market, how you’re doing it differently.

Explore Your Business Model

The fortunate will take one look at their business model and immediately recognize a differentiator, such as their giving 10% of proceeds to a childhood cancer charity or providing college scholarships for employees. As in these examples, you can see it’s not always your product or service that differentiates you. Sometimes it’s how you conduct your business or your company culture that stands out.

Examine the Needs of Your Ideal Customer

If you have a buyer persona or an idea of who your ideal customer is, ask yourself what that person needs? If you’re not sure, listen to what your loyal customers are saying about you in reviews or testimonials. What makes an impact in their lives? Read reviews of your competition. What are the key themes that keep surfacing?

Define the Impossible

Ideally what makes you stand out is something your competition will have difficulty duplicating. Using the themes you identified in what your ideal customer likes or values, you’ll construct a promise your business can make that would be hard for others to replicate. “The best service” is not a differentiator unless you pair it with specifics like “best same-day service” or “service with a smile or your meal is free.” Take for instance Dawn Dishwashing Soap. Marketers had a hard time finding the right niche for the product. It cleaned well but so did its competitors. Nothing seemed to work in differentiating it until they did a commercial showing how it was used in oil slicks to clean birds. Suddenly the dish detergent is known for taking “grease out of your way” was also saving the environment.

Even if your competition eventually offers the same thing you do, if you can bring it to market and become known for it first, you will have a successful differentiator.

Make Your Process Unique

Sometimes what makes your business unique is actually a flaw in other’s eyes until you define it as something intriguing or fun for your customer. For instance, Dum Dum lollipops by Spangler Candy Company produces a mystery flavor. At first glance, this appears to be a fun marketing stunt but it is really an efficient operations tactic. The mystery flavor is the combination of two flavors of lollipops. Instead of taking the time to strip the production machines between flavors and make a solid switch, the company decided to leave the machines running between flavors and thus the mystery flavor, a combination of the two. This saved huge amounts of time and resources but appeared to be a product marketing decision. Sometimes the efficiency with which you bring your product to market is your differentiator.

Differentiating yourself from your competition is essential to helping potential customers select you over other businesses in your town and across the globe. An effective difference lies in marketing something your prospective customers’ value and calling attention to something your competition can’t easily replicate (or hasn’t thought of).  If you don’t know or establish what makes you different, there’s no way for a buyer to know.


Christina R. Green teaches small businesses, chambers, and associations how to connect through content. Her articles have appeared in the Midwest Society of Association Executives’ Magazine, NTEN.org, AssociationTech, and Socialfish. She is a regular blogger at Frankjkenny.com and Event Manager Blog. She’s a bookish writer on a quest to bring great storytelling to organizations everywhere.
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