The business world could be compared to a competitive event. To emerge victorious, your small business needs to be armed with a strong Unique Value Proposition (UVP) and compelling Unique Selling Points (USPs). They are the backbone of both your offense and defense, helping you cut through the noise to reach your prospects, and to build a wall to defend your market share.
In order to put them to work effectively, there can’t be any confusion over the purpose for each of them as a part of your marketing strategy. Unfortunately for many small businesses, they tend to get used a bit too loosely, often diluting them down and rendering them ineffective.
What Are UVP and USPs?
- Unique Value Proposition (UVP): Your UVP is a clear and concise statement communicating the primary benefit your customers will receive from your product or service, and how it sets you apart from competitors. It’s the reason they should choose you over others. A strong UVP addresses your target audience’s most pressing pain points or desires. Developing your UVP is an important part of creating the marketing strategy (or your go-to-market strategy if you’re just getting started) for your business.
- Unique Selling Points (USPs): These are the distinct features, advantages or qualities of your product or service that make it stand out and differentiate it from competitors. USPs are the individual elements that contribute to your overall UVP. They can range from tangible product features to intangible aspects like customer service or brand image. You may have heard it called ‘Differentiators’ or even your ‘Unique Selling Proposition’. Defining your USP is another really important part of creating your marketing strategy.
How To Create a Unique Value Proposition that Drives Your Marketing Strategy
To create a powerful UVP, follow these steps:
- Identify your target audience: As always, you start here. Know who you are trying to reach and understand their needs, wants, and preferences. Creating buyer personas will help you to visualize those prospects you are speaking to and develop a deeper understanding of their behavior, demographics, and motivations.
- Analyze your competitors: Study their UVPs and look for gaps in the market you can fill. This will help you to uncover opportunities for differentiation and ensure your UVP is truly unique.
- Determine your unique benefits: Identify the key benefits that make your product or service superior to competitors. Stay focused on the aspects that are most important to your target audience and make sure you’re addressing their primary pain points and desires.
- Be clear and concise: Your UVP should be a short, memorable statement. It has to be easily understood by your target audience. Avoid jargon or overly technical language, and make sure it communicates the core value of your offering. Err on the side of simple and clear, and you’ll be able to iterate on it as you move forward.
Identifying Your Unique Selling Points
To uncover your USPs, consider the following:
- Features: What sets your product or service apart from competitors? This could be a unique feature, a higher level of quality, or a more personalized customer experience.
- Benefits: What specific benefits does your product or service provide that others don’t? Consider aspects like convenience, cost savings, or improved outcomes for customers.
- Outcomes: What are the outcomes or value derived from the product or service that others don’t deliver? It could be exceptional customer satisfaction, faster results, or a more enjoyable user experience that sets your offering apart from the competition.
- Are there any features or aspects of your product or service that are exclusive to your business? This could include patented technology, a unique methodology, or exclusive partnerships.
Examples of Powerful UVPs and USPs
Here are a few small business examples:
- UVP – “Wholesome, mouthwatering baked goods made from 100% organic ingredients, supporting local farmers and sustainable practices.”
- USPs – a) Sourcing only from local, certified organic farms. b) Offering a wide variety of gluten-free and vegan options. c) Committed to eco-friendly packaging and business practices.
Tech Repair Service:
- UVP – “Fast, reliable, and hassle-free tech repair services for busy professionals with guaranteed satisfaction.”
- USPs – a) Providing on-site repair services at the client’s location. b) Offering a 24-hour turnaround time for most repairs. c) A no-fix, no-fee policy, ensuring customer satisfaction.
- UVP – “Empowering individuals to achieve their fitness goals with personalized training programs, state-of-the-art equipment, and a supportive community.”
- USPs – a) Customized workout plans tailored to each member’s goals and fitness levels. b) Offering a variety of fitness classes taught by certified trainers. c) Creating a motivating and inclusive atmosphere for all members.
And here are a few successful UVPs and USPs from a couple of companies you’ve probably heard of:
- UVP – “Think different”
- USPs – Sleek design, user-friendly interface, and seamless ecosystem of products.
- UVP – “Accelerate the world’s transition to sustainable energy”
- USPs – Electric power, autopilot technology, and over-the-air updates.
How To Use Your UVP and USPs in your Marketing Strategy
- Integrate them into all of your marketing: Ensure that your UVP and USPs are consistently communicated across all your marketing materials, both online and offline. This includes your website, content, social media, advertising, and sales collateral.
- Train your team: Educate your team members on your UVP and USPs, ensuring they understand their importance and can effectively communicate them to customers and prospects. It takes ongoing repetition, but it’s more than worth it.
- Test and refine: Like all elements of your marketing strategy, you’re going to iterate on it over time. Continuously monitor your UVP and USPs’ performance, gather feedback from customers, and make necessary adjustments. The market and customer needs evolve, so how you present your value proposition and selling points should adapt accordingly.
- Incorporate storytelling: Leverage the power of storytelling to convey your UVP and USPs in a more engaging and memorable way. Share customer success stories, case studies, or personal anecdotes that showcase the impact of your product or service.
A powerful Unique Value Proposition along with compelling Unique Selling Points are crucial weapons in the arsenal of any small business. They are also commonly underused by small businesses, which means there’s a huge opportunity for you when these are a part of your marketing strategy. By investing time and effort into developing and leveraging your UVP and USPs, you can set your business apart from the competition, attract and retain customers and drive profitability.