How to Create a (UVP) Unique Value Proposition
A unique value proposition (UVP) communicates how your business, product or service provides something meaningful to your customer. It should show your customer how they benefit with your product or service in their life.
Where most companies go wrong is that they only talk about what they do, instead of why they do it. Why was the business started? Why does your customer benefit from your product? Why will your service positively impact the lives of your customers? They aim for the customers head instead of their heart. It’s important to balance logic and emotion when creating your unique value proposition, but ultimately we are moved by emotion.
Having helped hundreds of businesses grow over the years, it became abundantly clear to us that many could benefit from better messaging. By explaining the real value they provide, and better understanding what specific psychological needs they meet, the businesses could better reach their customers. Our purpose as a company is “To Help People” (That’s the short version) by providing a tremendous amount of value. So, here you go.
Remember: You’re not selling a product or a service; you’re selling an emotion, a feeling or an idea of how your customers will benefit when it’s in their life! You’ll discover how to do that by addressing the following steps:
- Understand your customer
- Describe your business/product
- Understand your uniqueness
- Meet your customers psychological needs
- Create a compelling Unique Value Proposition (UVP)
Understand your customers
Who are your customers and what do they care about? What fears, uncertainties, desires do they have around your product/service? How do they make decisions when purchasing your product? By truly understanding what your customers desire, you are able to communicate how you meet those needs better than your competition.
Here are a few ideas to help you better understand your customers: Talk to your customers, look at some of your reviews, ask your salespeople, ask customer service, conduct a survey and find out what your customers are feeling find out what your customers are saying. This is a great exercise and may bring up innovative ideas that will help your organization provide even more value and grow.
Describe Your business/product
Why did you start your business? What business are you in? What product or service do you sell? What problem do you solve and what is the benefit to your customer?
“People don’t buy what you do; they buy why you do it.”
~ Simon Sinek
Understand your uniqueness
Why is your organization, product or service unique? Why should a customer work with you instead of another company? If you’re having problems with coming up with something unique, think about how can you create uniqueness. It can be as simple as a different way of thinking.
Meet your customers psychological needs
Every human has an innate desire to feel important, for connection (love), to grow and to contribute. We also crave the push and pull of certainty and variety. While every human being has all of these needs, we each prioritize them and meet these needs in different ways. What psychological needs are important to your customers? How can you better meet those needs? And how can you communicate that in your UVP?
Create a Compelling Unique Value Proposition (UVP)
It shouldn’t take more than 15 seconds to say out loud. Get feedback from many sources, especially customers. Then refine. Remember, your message should aim for the heart and, if successful, the head will follow.
You can start with this template, but feel free to change as needed: (Your business name) helps (your customers) (what you help them do) via (unique differentiators) resulting in (meeting your customers psychological need / benefit to your customer).
I hope this helps you better connect with your potential customer and grow your business. Remember, when you obsess over your customer, develop a successful marketing strategy, commit to providing the best product/service in your industry and measure meaningful metrics, your business will experience incredible success and so will your clients.