When you have a passion and start a business based on that passion, you want to be successful. After all, part of opening a business is wanting to turn a profit. But to bring in customers, you have to stand out and show them why they should choose your business over your competition. That’s where your unique value proposition comes into play. But, what is a unique value proposition? How do you use it? And, how do you find yours?
What is a unique value proposition?
A unique value proposition (UVP) is also known as a unique selling proposition or value selling proposition. It is a short statement that describes:
- The benefits of what your business does or offers
- How your business solves the problems or needs of your customers
- What sets your business and offerings apart from your competitors
The unique value proposition is a marketing tool businesses use to set themselves apart from the competition to show why customers should choose their company. In short, a UVP details the unique value that you offer in the market and to your customer base.
Why create a value proposition for your business?
Business owners generally go into business because they have an idea they believe will be of value in the market. But, market competition (which you can research in a market analysis!) can make it difficult to set your business apart and turn a profit.
Enter: unique value proposition. Businesses create a unique value proposition because they want to detail how and why they are different from and better than competitors. Basically, the UVP tells customers why they should buy from your business over another option.
The value selling proposition differentiates you from the competition in ways that matter to customers. When customers see the value of your offerings, they may choose to buy from you instead of going to another business.
Unique value proposition vs. slogans
Is a unique value proposition the same thing as a company’s slogan? No, slogans are different from value selling propositions. In some cases, a slogan may be a shortened version of the value proposition.
A slogan is a short, memorable phrase that helps customers remember and identify a brand. For example, Nike’s slogan is “Just Do It.” Businesses typically use slogans in advertising campaigns to help the market recognize the company. But, slogans do not necessarily detail the value customers receive from the business or product.
Like slogans, UVPs are short and memorable. But again, the value selling proposition explicitly tells the value of why a customer should buy from a particular business and what they have to gain.
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How to create a unique value proposition
Again, a unique value proposition has three parts:
- Benefits of choosing your business
- The problem or needs your company or product solves
- How your business is different
Before you begin writing your value proposition, identify your target market. Who are your potential customers? Look at the age, gender, target income information, location, lifestyle, etc., of your perfect target customer. Get in-depth with the details of your perfect customer so you can identify how to target them.
Once you know your target customers, ask yourself why customers should choose you over another brand. What details differentiate what you offer from what everyone else in the industry offers? In essence, state what makes you unique. This should be short, sweet, and to the point. Customers are looking for an idea that they can remember. So, ditch the paragraphs and use bullet points.
Then, ask yourself how you solve the problems your customer has. Are you more affordable? Is your product easier to use? Do your product offerings have something your competition doesn’t? Why is what you offer a must-have for customers? Address the answers in your value proposition.
Tie these three things together with your company’s mission. Make sure that it sounds like you can only be talking about your business and that it doesn’t apply to anyone else. Consider having others read through it so that you can ensure it’s unique to your company.
Finally, create a single sentence that encompasses all aspects, including the benefits, solutions, and differences you provide. Spend some time thinking about this sentence. Don’t rush into it. And, test it once you determine what your UVP is.
Unique value proposition examples
In 2020, there were 31.7 million small businesses in the USA, according to the Small Business Administration (SBA). And, there were 20,139 large businesses. With so many existing businesses, it’s important to highlight the value of your business. Take a look at some unique value proposition examples.
Your business creates handmade clothing using recycled materials. After doing research, you determine that your target market is:
- Women aged between 25 and 45
- Eco-conscious individuals
- Customers with high disposable income
After determining that overseas shipping is too expensive, you limit your customer base to the United States. Now that you know your target demographic, you look at the unique value you have in the industry.
What is your unique value? You design and create one-of-a-kind clothing from recycled materials instead of purchasing new material for each design.
Your value proposition might be: One-of-a-kind recycled fabric fashions for the eco-conscious woman.
A business sells soy candles using eco-friendly scents and natural colorants. The business creates each candle to look like the scent (e.g., peppermint candles that look like peppermint stick candy).
Target market research shows that the target customers are:
- Men and women aged between 25 and 55
- Eco-conscious individuals
- Customers with some disposable income
- Based in the USA
What is the unique value of the company? Candles aesthetically match the scent profile of the candles and use eco-friendly materials to create a product that is both decorative and useful.
The value proposition might be: Decorative fragrant candles for the eco-conscious candle-lover.
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