- May 22, 2021
- Posted by: Peninah Anyango
- Categories: Brand, Business, Business plans, customer Service, Digital Marketing, Marketing, Sales, Strategies
What is a Unique Value Proposition?
A value proposition is a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service. This statement convinces a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. A value proposition is that quality(s) that makes you stand out from the competition. For instance, why should you use Gmail as opposed to Yahoo? What does Gmail offer better than Yahoo and vice versa?
What is the Importance of UVP?
- Engage your consumers and deliver your message
UVP is purely consumer-oriented. As always, the customer is hero and in this case, your UVP is all about giving the customer what they need. Do you offer convenience, low costs, time-saving solutions amongst your competitors? How you frame this in a message they will understand is very important. For instance, Uber’s UVP reads – The Smartest Way to Get Around.
- Explain your business model to investors in a concise way & Effectively articulate your mission to potential partners
If you’ve ever witnessed a pitching session or pitching competition, you’ve probably heard potential investors ask about the value proposition of a business. A strong value proposition increases your chances of getting an investor or even a business partner.
- Understand what key activities drive your company’s growth
The process of nailing down a value proposition enables you deep dive into what the customers’ needs are. Once customers’ needs are met in a satisfactory manner, there is business growth inevitably. You will know the key activities to focus on for systematic growth and how to acquire new customers.
- Formulate business strategy with a clear mission
UVP enables you to choose the most appropriate and workable course of action to achieve business goals and objectives.
Value Proposition Musts
- It must be exclusive
How is it both desirable and exclusive? How well does it highlight your competitive advantage and set you apart from competitors?
- It must be specific
What are the specific benefits your target customer will receive? Are they well defined and targeted?
- It must be pain-focused
How will your product fix the customer’s problem or improve their life? For a minute, stop thinking about the financial aspect of the business and think about the problem you are fixing. Is it viable? Is your business solving an actual and existing problem?
The beginnings of the Value Proposition development came from the business model canvas as shown below. Among other components on the business model canvas, one had to define what his/her UVP was to make the business viable.
Watch the recording below for a step-by-step process of creating your UVP. Do like and subscribe to our YouTube Channel for more business tips.