Creating an appealing value proposition is essential for your business, no matter the profession or the size of your company. You could say that a good UVP is a break-it or make-it element of the overall marketing appearance.
Do you remember, at the beginning of your career, when someone asked you:
“What do you do? What is your job?”
And then you started babbling away the usual, dull phrases, not leaving any impression on the listener. Probably, they didn’t even remember what is that you do.
As opposed to nowadays, when LinkedIn users put in their profiles so many catchy job titles and position descriptions. It is immediately evident what kind of person they are, what is their niche and how can they solve a particular problem. Just a few carefully chosen words evoke something inside the reader or listener, who then gives you the time, attention, and money.
KEEP IN MIND: The way you present yourself is an enormous part of the potential relationship with your customers, partners, or suppliers. Do not take the role of a good UVP lightly — it can change how the audience perceives you and consequently, it can drastically change the course of your business.
Note: For a quick fix, jump to title #3!
You probably heard about them both and sometimes they are used interchangeably, so it might be difficult to set them apart.
Unique Value Proposition (UVP) and a Unique Selling Proposition (USP) are indeed 2 very similar concepts, used to describe specific benefits and value of a product or service. Both concepts are the primary factor of differentiation from other businesses. Meaning, this type of proposition exposes the qualities that are uniquely yours and it addresses the customer’s pain point in a way that sets you apart from the competition.
Nonetheless, there are some differences between the two.
UVP is a broader, general statement, presenting to the customer the overall value of a service or product, while also addressing the emotional aspect of purchase. It is extremely useful in marketing strategy, especially in branding. It sets the path and the tone of the company’s advertisement.
USP is a more specific statement. It is focused on a few very particular benefits or most likely just on one of them. The main role of a USP is to convince the customer to buy the promoted product or service and not to look anywhere else as this is the best solution in the specific category of products or services.
So, now, that you have a company or you work in one … What do you tell people, when they ask: “How is your company different from the others?” This is so close to the question: “What do you do?” But on the other hand, it is so much more complicated.
If you have thought about what is that you do better and differently than others – you shouldn’t have any problems. Your answer will be clear and quick, while also addressing the audience’s needs, wishes, and the great outcome for the potential customer.
And if you haven’t … Well, you have a problem. You HAVE TO know, what your business does and why should people buy from you and not from someone else.
The importance of well-structured UVP with good supporting research is shown in the Startup Genome Report, which analyzed data from over 3200 startups. Premature scaling is a common reason for a startup company to fail, due to poor market understanding and poor UVP.
Jokingly, we could say that a UVP is like an ID card of the company. It is one of the first things you should tell or show to the audience. Not the company’s history, the story of its founder, its expertise, or its experiences. In most cases, UVP is even more important than the name, the logo, or the glamorous tagline.
The place for a UVP is on the top of the first page of your website, so it is immediately obvious to anyone what is your niche, which customers’ pain points are you addressing, how you handle the customers’ problems … You need to be consistent and not be afraid of putting your well-structured UVP on practically every advertising move.
If you add to that a little bit of character, stronger tone, or edge, then the UVP will also resonate with your personality and help you to stand out from the others. You will get the needed attention and the audience will remember you in times of buying.
One more thing to consider is the difference between the UVP of your company and the UVP of your product or service. Sometimes they blend, on the other hand, they might be quite different. Try and lead 2 separate pieces of research and you will establish if there is only one UVP or if there is two. In the latter case, always address both for better marketing results.
So, what exactly makes one UVP stand out? Let’s break it down.
The “value proposition problem” has a simple solution – a formula, actually: We help X achieve Y by doing Z. This equation offers you a good setup for determining your value proposition.
But to adequately fill this formula, you need some data first. Start with this few steps:
As H. Mark Meier says, regarding startups, it is true for all types of companies:
“Developing a value proposition requires a deep understanding of the target customers and their needs. Startups must conduct thorough market research to identify customer pain points, challenges, and desires. By aligning their value proposition with customer needs, startups can ensure their products or services are tailored to address specific problems or fulfill specific desires, increasing the chances of customer adoption.”
If you know what sets you apart from others, use it in your advertisement campaign and you will attract a certain type of audience. High chances are they will become your recurring customers; especially if you are addressing their special problem, pain, or even style and mindset.
And then … Prioritize clarity.
If you fail to effectively communicate your UVP, the customer will not see your product as the best possible match and will forget about you. But if you can vocalize their problems better than they can, they will trust you with the solution. They will feel heard and will give you a shot.
A great value proposition should answer these questions:
If you can answer these, you’re on the right track.
Research by MarketingExperiments shows that many companies still need help with identifying a compelling value proposition and communicating it attractively.
Avoid confusing or overwhelming your audience by filling your UVP with too much detail. You’re not hitting the mark if they can’t grasp your offering quickly or need to read a lot of text. While sufficient information is crucial for conversions, capturing their attention with a clear and compelling value proposition comes first.
So, what makes a good value proposition?
Clarity! It’s easy to understand.
Look at the renowned CXL for structural advice. They say, there is no right way to go about that, but suggest using an efficient blueprint:
A UVP is part of the company’s identity. It is where you show, what makes you different and better than the competition. It emphasizes what is unique about your product or service and to whom you serve. A well-structured UVP is a powerful communication tool, not just when attracting customers and selling, but also when representing yourself, pitching to investors, or building new partnerships.
It also enables easier decision-making for the customers; with a compelling UVP, you can influence buyer’s perception, build trust, and increase conversion, while gaining recurring customers, who resonate with your offer and style.
While constructing a UVP, invest some time in good research, be clear while choosing the right words, and be consistent when using it.
With a clear and desirable UVP, you get the clients that you want and who want you!
Mojca is an expert in transforming words into gold - or as she likes to call it, Conversion Copywriting at ADGY!
