How to use unique value propositions to differentiate your company from your competitors and grow your bottom line.

By RSS Ray

The greatest mistake most companies make in marketing is not clearly communicating to a prospect, “Here’s why you should spend your money with me instead of the other guy.”

Let’s face it…very few of us have no competition.  Customers can buy similar products and services from other companies, making it hard for a customer to differentiate buying one product over another or one company versus another.

The way to solve these issues is to clearly define, then consistently communicate what marketers call your “unique selling proposition” or “unique value proposition (UVP).”  We prefer the latter and will use that terminology with variations when elaborating on the concept.

To best understand how this concept applies to making sales, let’s first break down and define its various parts:

• Unique describes what makes you different from your competitors.  It is the characteristics of your services or products that set you apart from other companies in ways customers are willing to pay for.

• Value defines for your customers what they get for their money.  It is the basic worth your product or service brings to buyers.

• Proposition is your offer or suggestion that something be done, considered, accepted or adopted.

Your objective is to combine these elements into powerful yet succinct statements that:

• Tell how you are unique in ways that are different from your competitors
• Describe how your company brings value to the customer

Your goal is to tell someone why they should buy from you instead of the other guy in about 10 words or less.

A unique value proposition is a reflection of what you actually are from the customer’s point-of-view.  No matter how much you wish it or want it to be true, your value proposition is a reflection of what you are.  Your UVP must communicate to prospective buyers in ways that are relevant to them.

It’s best to avoid unique value propositions that:

• Make claims that others can easily make – lowest prices, friendliest personnel

• Make claims that are hard to substantiate prior to purchase – best service, knowledgeable personnel

• Are subjective in nature – fastest service, quickest response, best tasting

• Talk about qualities of your company or features of your product – family owned and operated, in business for 10 years, etc.

Keep in mind that customers have expectations that are requirements for anyone they shop with and that featuring these requirements as part of your UVP is usually not in your best interests. 

When we ask companies why a customer should spend with them, most invariably answer with some variation of “great service.”  Great service is certainly a necessity but it’s not unique.  It can help you stand out after someone has dealt with your company if problems arise.  However, it’s much more important to communicate differences that help you stand out before things get to that point.

And besides, doesn’t everyone claim to have superior customer service?

A strong UVP makes sales for your company.  Strong UVP:

• Are clear, concise statements
• Communicate differences between one product/service/company and others
• Are objective or easily verifiable
• Communicate real value to a customer
• Are things your competitor can’t claim to provide or do
• Are what you actually are – not what you say or want to be
• Are simple to understand by all in your target market

The best way to develop your unique value propositions is to:

• Ask yourself why someone should buy from you instead of the other guy
• Listen to buyers and prospects to learn why they bought/didn’t buy
• Determine what you can do to provide customer value that others can’t
• Emulate best practices of others in non-competing industries

Tags: Marketing, RSS Ray, Selling Strategies, Unique Selling Proposition, Unique Value Proposition, UVP, Value Based Differences