11 Tips to Create a Winning Value Proposition for Your Business

By Khalid Saleh

Defining your customers' challenges and needs may be troublesome and time-consuming, but once you have defined them, you have half of your marketing problem solved.

A unique value proposition (UVP) is a statement that gives your business an edge over competitors; it promises real value and benefits that probably only your business can offer. Simply put, it “niches” your business. What should you know when crafting a unique value proposition?

1. Know your ideal audience and appeal to it

You can only appeal to customers whom you already know. When crafting your value proposition, forget about trying to anyone who visits your website and solely concentrate on your target customer. Attempting to appeal to every visitor leaves you with a watered-down UVP that doesn’t appeal to any solid customer base. It’s important that you understand who your customers are and what they value most. Find out what motivates them and how best you can leverage those motivations to reinforce your UVP. Creating buyer personas can help you to understand your real customers.

2. Connect with your audience—resonate with the buyer

Once you understand who your ideal customer is, seek to understand their challenges and how you can help to overcome them. This is only possible if the buyer is willing to share crucial information about what they value in a product. You can then include these values in your value proposition; this makes your value proposition a customer-focused UVP.

3. Study your competitors—evaluate their UVPs

To stand out from your competition, you must know what they are offering. Take time to study their value propositions after which you can tailor your own proposition in a fashion that beats them. Know what your competitors have already done, and what you can offer differently.

4. Discover the singularity of your product—differentiate

If your business offers a service that none of your competitors are offering, this gives you the opportunity to come out as an industry leader. This is even better if you can actually excel in that particular area. Focus on your points of differences. As you compete for customers, you need a unique value proposition that makes your business stand out and differentiates your product from the rest.

5. Dispel myths and stereotypes

When you are planning to offer services in an industry rocked by stereotypes and myths, you can still use your value proposition to turn around those conceptions to work in your favor. For example, if you are venturing out in an industry that battles gender stereotypes, you can craft a UVP that clearly affirms your commitment to “break the norm.”

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6. Craft a clear mission statement

A strong UVP should do more than just elaborate your marketing plan; it should resonate with a clear mission statement. Once you understand what your business stands for, you can craft a value proposition that overlaps with the mission of your brand. This also means that your mission statement should be one that differentiates your product from the lot.

7. Promise clear-cut benefits to your customer

Your customers will only want to buy from you if they are convinced that your product will solve their problems. A good value proposition should clearly articulate the benefits of your offer in a language that the customer can relate to. Like any other delivery system, your business must deliver value. Include in your value proposition concrete end results that the buyer stands to benefit by purchasing your product. How does your product relieve their pain?

8. Speak the language of your customer—clarity

A good value proposition should square up with your customers’ conversations. The language of your value proposition should be synonymous with how the customer would describe her problem. What language does she speak? If for instance, she talks about window cleaning, don’t offer a window washer; provide a window cleaner. Meaningless and jargon-laden propositions should also be avoided. If your customer doesn’t feel like you are reading her mind, then your UVP is not the best.

9. Maximize credibility—substantiate

Can you deliver what you promise? Promising instant healing is one thing, and living up to the promise is another. Your UVP should be catchy, but credible. Once you’ve crafted your UVP, focus on proving your claims and minimizing any perceived risk on the part of prospective customers. Perceived benefits should outstrip perceived costs and risks to inspire greater motivation from your prospects. Including demonstrated results such as increased revenues and improved efficiency helps win target customers.

10. Seek inspiration from successful players

In your own industry, there may be other brands that have already succeeded at what you are doing. Taking the time to study successful companies helps improve your value proposition. Evaluate each company's UVP and try to understand how it contributed to their product differentiation. You can then extend the same to your own value proposition.

11. Focus on the customer and not the business process—forget the mechanics

Do not get lost in the mechanics of crafting a catchy UVP at the expense of your customer. The business process should not be your priority—focus on communicating value to the customer. Give your target customers a reason to try your product and shun those of your competitors. Think about ways to improve your customers’ lives, health, or financial situation. It’s only after you understand these priorities that you can get down to the mechanics of crafting your value proposition.

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