The Unique Value Proposition: The offer they can’t refuse!


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The Unique Value Proposition: The offer they can’t refuse!

Having a powerful UVP is crucial to provide clarity and assurance to customers that you have an irresistible offering, whilst giving direction and focus within a business.  

When you market your products or services, it’s important that your target customers perceive them to be superior to similar products or services in the market. To make sure this happens, you must identify the competitive advantages of what you are offering. When these are clear to you, you can then communicate to customers what makes you different from your competitors, and what extra value your products or services provide.

Basically, you’re making an offer your customers should find irresistible. It also means you can charge a higher price than if you were providing the same level of value as everyone else in the market.

The best way to communicate this message to customers is through a Unique Value Proposition (UVP).  A UVP is a statement that outlines the reasons customers should buy your products or services. It is not a slogan, a motto or a catchphrase; rather it is a descriptive statement that aims to convince customers that your products or services will provide more benefits and value than those offered by your competitors.

A UVP targets your ideal market

Your target market is made up of potential customers who you believe will gain the most from using your products or services.

Your UVP communicates the key reasons why your products or services are best suited to this market. It should answer four key questions:

To whom are you selling?

  1. Which of their needs do your products or services satisfy?
  2. What unique value and benefits do you provide?
  3. What differentiates you from your competitors?

A UVP aligns with your core business purposes

An effective UVP permeates everything that you do.

It attracts customers to your business:

  • Display it on your business website.
  • Include in marketing material and other touch points that are put in front of your target market.
  • Make sure its message is clear. Customers should be able to read the UVP and understand the value and benefits without the need for further explanation. If they find it hard to understand, they are more likely to purchase products and services from businesses that provide them with a clearer value proposition.

It creates direction and clarity within your business:

  • Used internally, it crystallises the business’ fundamental activities.
  • Your UVP helps you define your ideal target market and identify and understand its core needs.
  • It also identifies the initiatives and features that have the greatest impact on meeting those needs.
  • A clear UVP avoids the waste of money, time and effort spent on products or services that are not attractive to your target market, and pointless attempts to sell to customers who won’t purchase from you. 

Formulating your UVP

The best method of discovering what is attractive and important to your target market is to ask. Speak directly with your customers. You can do this using a ‘Voice of the Customer’ (VOC) exercise. The feedback then forms the basis for your business’ value, vision and mission statements, which, in turn, help shape your UVP.

The VOC also helps direct your marketing efforts, by focusing on those activities that will generate the best results. When you understand your customers and their core needs, you can concentrate on the marketing channels that are most relevant and will most effectively communicate the benefits and values of your products or services.

One important thing to remember: you don’t sell products or services; you sell benefits and values. Therefore, a successful UVP will be easy to understand and will outline the genuine value and real results customers will experience when they use your products or services. The more value you provide, compared with what your competition offers, the higher the price you can charge.

At dVT Strategy, we have dealt with a number of clients who are unclear about their UVP – or have never formulated one. In face-to-face workshops, we help them identify their differentiators, and create effective UVPs to form the basis for their sales, marketing and product development efforts.

As a result, our clients see benefits such as:

  • Better quality and greater quantity of leads
  • Increases in lead conversion and growth in sales
  • Greater focus from staff
  • More consistency across the business, as everyone communicates the same message

Your UVP works on many levels. It provides clarity and assurance to customers. Used internally, it also guides and focuses staff, and clearly embodies your businesses brand. A powerful UVP is one of the most important resources that you will develop, whether you are starting up or launching a new plan within an established business.

If you are a business owner who is interested in identifying and developing your business’ unique value proposition in order to realise the benefits mentioned above, contact Brendan Ryan at dVT Strategy on 02 9633 333 or email brendan@dvtgroup.com.au.