There are many good articles for uvp but I have summarized the main points from different sources.
What is a Unique Value Proposition?
One of the biggest reasons businesses struggle in today’s market is because they have weak value propositions.
Many of the products or services these businesses sell have extremely high value. But they fail to articulate it in words that appeal to their customers.
The job isn’t done just because you’ve built a newer, better product.
Your Unique Value Proposition / Unique Selling Proposition (UVP or USP) is one of your most essential messages.
Marketing makes clear the truths a customer needs to hear.
Without a compelling value proposition, those who might benefit most will walk right on by.
If you are having difficulty defining your Unique Value Proposition, you can be sure that your potential customers are as well.
Without a Unique Value Proposition your company risks becoming lost in a sea of similar.
What exactly is a value proposition?
A value proposition is a promise of value to be delivered. It’s the primary reason a prospect should buy from you.
A strong value proposition is specific, often citing numbers or percentages.
It may include a quick synopsis of your work with similar customers as a proof source and demonstration of your capability.
Here is definition:
“A value proposition is a clear statement of the tangible results a customer gets from using your products or services. It’s outcome focused and stresses the business value of your offering.”
In a nutshell, value proposition is a clear statement that:
Describes how you are unique (Differentiation):
Tells the ideal customer why they should buy from you and not from the competition (unique differentiation) and therefore differentiate you and your product / service from your competitors in your market.
Delivers specific benefits (quantified value)
Explains how your product solves customers’ problems or improves their situation.
It’s for people to read and understand.
Value proposition is something real humans are supposed to understand. It’s for people to read.
Your value proposition needs to be in the language of the customer.
It should join the conversation that is already going on in the customer’s mind.
In order to do that you need to know the language your customers use to describe your offering and how they benefit from it.
What the value proposition is NOT
It’s not a slogan or a catch phrase.
Slogans are great boardroom meeting material when you have a billion-dollar advertising budget. Not so much for the rest of us.
It’s not a positioning statement.
Positioning statement is a subset of a value proposition, but it’s not the same thing.
How to Create UVP?
Ask this Differentiation questions:
Place priority on your point of difference:
- What can your solution do that the others can’t?
- What makes you unique?
- What makes your offering unique and different?
- Which is the reason why your solution is better than the competition’s in some notable way.
Take the time to really understand how your organization is different from your competition.
A key role for the value proposition is to set you apart from the competition. Most people check out 4-5 different options / service providers before they decide. You want your offering to stand out in this important research phase.
So how do you make your offer unique?
If you can’t find anything, you better create something. Of course the unique part needs to be something customers actually care about. No point being unique for the sake of being unique (“the ball bearings inside our bicycles are blue”).
The key thing to remember is that you don’t need to be unique in the whole world, just in the customer’s mind. The closing of a sale takes place in a customer’s mind, not out in the marketplace among the competition.
Define real value:
Value is what the customer gets, and in order to state that well you must understand why customers are using your product.
One of the best ways to demonstrate value is to know better than anyone else what life is like before and after your product.
As the saying goes, price is what you pay and value is what you get. Communicating value means clearly defining why they should buy.
The less known your company is, the better value proposition you need.
Define language of the customer
The way YOU speak about your services is often very different from how your customers describe it . The answers are outside of your office. You have to interview your customers to find it out, or use social media.
The best value proposition is clear: what is it, for whom and how is it useful? If those questions are answered, you’re on the right path. Always strive for clarity first.
If your value proposition makes people go “hmph?”, you’re doing it wrong. If they have to read a lot of text to understand your offering, you’re doing it wrong.
It avoids hype (like ‘never seen before amazing miracle product’), superlatives (‘best’) and business jargon (‘value-added interactions’).
It can be read and understood in about 5 seconds.
Also, in most cases there is a difference between the value proposition for your company and your product.
Unique Value Proposition for your Website
“Where am I? What is this?” That’s the starting point of every new visitor who hits your site.
You have to present your value proposition as the first thing the visitors see on your home page.
Value proposition is the #1 thing that determines whether people will bother reading more about your product or hit the back button.
On the web people speed by even things they care about.
Headlines take priority; they are the highway signs for where a prospect wants to go next.
The value proposition is usually a block of text:
- One paragraph of text with a visual (photo, hero shot, graphics).
You first write copy around the desires and outcomes you expect to hear; you revise it around the desires and outcomes you actually hear. You want potential customers to say, “It’s like you read my mind!”
Use supporting players:
- Customer testimonials
- Assurance: Even if it all goes wrong, here’s how you’ll be set right.
- Social proof
Use Boosters for your value proposition (These things work well against competitors who do not offer them))
- Money-back guarantee
- Free shipping
- Fast shipping / Next day shipping
- Free bonus with a purchase
- Free setup / installation
- No setup fee
- No long-term contract, cancel any time
- A discounted price (for a product)