The reality of business is that your customer relationship is based on a perceived exchange of value. Your(also known as unique selling proposition) is what defines the benefits and costs that customers receive from the business relationship.
The best unique value proposition demonstrates how it is good for your customers. Youris what makes you stand out. It is a belief or an aspect of your offerings that make it better than your competitors.
Your unique value proposition clearly states what the benefits are of your offerings, how you solve your consumer’s needs, and distinguishes you from your competitors. It should be written as a consumer-oriented statement.
- Clearly convey the value of what you are offering.
- Explain how you are different from your competitors.
- Benefits are not necessarily features but features can be benefits.
- Highlight how you solve the pain points of your target audience.
- Avoid jargon, acronyms, and superlatives, such as “world-class.”
- Steer clear of using the words, “we,” “our,” or “I.”
For example, Walmart sells bargains. Its corporate mission is “to save people money so they can live better.” Thus their marketing slogan is “Save money. Live better.” Obviously, Walmart’s UVP uses price to attract their targeted audience. (Notice Walmart doesn’t claim to offer quality customer service or an expedited sales experience.)
- What do your customers think is the value they receive from your offerings?
- What is the market perception?
- What is important to them?
Define your unique value proposition and then test it with your targeted audiences. Does it resonate with them? If so, you know you got it right.
Theodore Levitt, the renowned economist, professor at Harvard Business School and editor of The Harvard Business Review had the following to say in his 1991 book entitled Thinking About Management (Paid Link*): “Differentiation is one of the most important strategic and tactical activities in which individuals and companies must constantly engage.“
Knowing your unique value proposition helps you to define your business statements better into building your brand. Being clear about what makes you special also helps provide insight to your business purpose, vision statement, mission statement, and core values.