Hey There Goldilocks, Is Your UVP Too Much, Too Little, or Just Right?

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Does your UVP cover everything from ABC to XYZ? If so, you're likely struggling to make ends meet.

Ok, now you're wondering just what the heck we’re talking about, aren’t you? Oh, nothing too important, just your Unique Value Proposition. Or, you know, the answer to why prospects should want to work with you!

Now that we have your undivided attention, let’s quickly define some terms so we can get to the meat of the matter. Sound like a plan?

What is Your Unique Value Proposition?

What is UVP?

“Also known as a unique selling proposition (USP), your UVP is a clear statement that describes the benefit of your offer, how you solve your customer's needs and what distinguishes you from the competition. Your unique value proposition should appear prominently on your landing page and in every marketing campaign.” (Unbounce.com)

Or, even more simply:

“A unique value proposition (UVP) is the core benefit or solution that differentiates your product or service from the competition and positions it as the best possible option on the market.” (CoSchedule.com)

So what do these definitions have to do with our opening question about “everything from ABC to XYZ”?

There is a tendency among entrepreneurs and small business owners to try to be all things to all people. After all, the thinking goes, whether you're trying to build or grow a business, you need more clients and, the best way to get more clients is to broaden your menu of services, isn’t it?

BUT, and here’s where that kind of thinking tales you – there’s no real value proposition to excite prospective clients there!

You see, your UVP should answer the question, “Are the unique features of this [product/service] worth the price?”

If it instead boasts the fact that you can do everything anyone could ever conceive of wanting from you (which is impossible, BTW), it offers no real value relative to the cost for the client. And, when all is said and done, clients buy VALUE, not your all-in-one fantasy menu.

Think a graphic will help? Here’s one borrowed, with thanks, from the folks at Omniconvert.com:

How’s that for adding clarity?

Where to Go From Here to Develop Your UVP

The website Dummies.com offers some excellent guidance for the next steps when developing your unique value proposition:

“Famed business author Neil Rackham believes a value proposition consists of four main parts: capability, impact, proof, and cost. You could have a strong selling proposition, but a weak value proposition.”

This model, the Value Proposition Builder, creates six stages for value proposition analysis:

  • For what market is the value proposition being created?

  • What does the market value the most – the value experience or the customer experience?

  • What products are being offered?

  • What benefits will the customer derive from the product?

  • What alternative options exist?

  • What evidence substantiates your value proposition?

“The unique selling proposition combined with the unique value proposition shows how marketable [your services] can be. It isn’t enough to be unique; you must be unique in a way that creates the perception of good value to the customer.” (emphasis added)

From this list, it’s easy to see that the most important feature of your UVP should be placing the emphasis on benefits and value. Or, to put it a simply as anyone can, make sure your UVP answers the client’s #1 question, “What’s in it for me?”

In these confusing times, Ted remains available for business consulting support to interior designers and furnishing store owners. With more than 25 years' experience in the luxury furnishings industry, he is able to answer questions about everything from general marketing to specific tips for developing your UVP as the guide for your marketing strategy… Get in touch with TD Fall today.