To be successful in business, you must know how to solve a problem that others don’t. Your unique value proposition is what sets you apart from the competition and attracts customers to your product or service.
A strong value proposition speaks directly to your target audience and internal teams and tells them exactly why they should purchase your products and services. In the case of non-profits, it’s why your donors should support your organization or members should join your programs, for example.
A value proposition is a clear statement of the concrete results a customer will get from purchasing and using your products and/or services. When creating your business plan, the value proposition is the first category you should consider. Everything flows from it!
You can sum up your value proposition in a catchy tagline, as it will be used in every marketing piece to concisely communicate your core product or service to an external audience. Later in this blog, I will give you the best unique value proposition template to help you craft your message.
4 Questions to Craft a Unique Value Proposition:
- What value does my business deliver? How do we help?
- What problem(s) does my business address?
- What product or service delivers our value?
- What am I offering the customer that is either better or different than the competition?
Conquering Competition
Apple is a great example of a company that focuses on competition. Back when they were called MacIntosh Computers, Steve Jobs differentiated Apple from PC by making his computers
excel in a specific area: publishing. Soon, Apple was viewed as the expert in that professional space.
A big mistake I often see is when entrepreneurs either don’t know who their main competitor is or what their differentiation is. To define my value proposition, I want to know my top 3-5 competitors and what their markets are like. What customer segment are they missing? Can I reach them?
Understand what makes your business different. What is the customer going to get? The best cup of fair-trade coffee? The newest phone on the market? Pies with half the calories and double the taste?
Your first goal is to get customers, and your unique value proposition will help you get there. Price is a great way to separate yourself from your competitors at first (although you need
to pair it with another competitive benefit). Look through the following list to find some ideas on how to differentiate yourself from the competition:
- Price
- Newness
- Performance
- Customization
- Design
- Brand
- Risk
- Accessibility
- Convenience
Unique Value Proposition Template:
This unique value proposition template hits every point you need to emphasize when communicating your business to a potential customer or investor.
We provide <product or service> to <target customer segment>. Unlike <next best competitor>, we offer <measurable unique benefit> at <cost or price.>
For more help on creating strong messaging for your business, join us for a free WealthBuilders Webinar on Wednesday, July 19th, at 4:00pm MT: “How to Craft a Unique Value Proposition.” Karen Conrad Metcalfe will walk you through the process step-by-step. Click here to register for this free webinar.
