How to Determine My Company’s Unique Value Proposition

Unique Value Proposition

Alrighty. Today we’re diving even further into online marketing strategies, and expanding on a concept we brought up in the last post—that most important of hand-tailored, targeted marketing messages—the UVP, or “unique value proposition.”

The What:

To define what the UVP actually is, we can begin by deconstructing the phrase itself.

First, your UVP is indeed a “proposition.” You are telling clients “choose my company, and we will meet your needs, solve your problem, or get you results in ways x y and z.”

The word “unique” refers to that niche that sets you apart from your competition—your differentiation. It also refers to how closely the solution you’re offering “matches” your prospective client’s problem or meets their needs, relative to your competitors.

The word “value” refers to the intrinsic value your one-of-a-kind product or service offers to a specific market segment.

Put it all together, and a UVP is basically a persuasive argument for why your product or service is a must-have for a very specific demographic—wrapped up in a nice, neat, concise one-simple-sentence package.

Ideally, because each segment within your target market has somewhat different motivations for choosing your product or service—even within the same family or company–you should develop a specific UVP for each specific segment.For example, if you are marketing to a corporation, the CFO will have different interests than the CEO, who will have different interests than the marketing director. Your UVP for the CEO should be about how your product or service can help advance the company. Your UVP for the CFO should relate to how you can save the company money, mitigate risk and improve its bottom line. And your UVP for the marketing director should focus on how you can help the company’s overall brand image as well as reaching more of its target market…more leads.

The Why

A clear, well-thought-out UVP is arguably one of the most effective tools in your marketing and sales arsenal. Creating or reinventing your UVP allows you to laser-focus your marketing strategy and clearly defines the value of your product to your market segments in a manner that’s short, sweet, and easy for potential clients to process and absorb.

Creating a different UVP for the different segments of your target market allows you to make the most of your assets. You can get different potential clients focused on the aspect of your product or service that will most benefit them and best meet their needs. You can speak directly to the problems and concerns of potential clients and offer them the best solutions.

The How

Think carefully about your general target market and your market segments. First, develop a general message based on your differentiation, or specialized niche. Then, think about the different segments in your target market. What does each segment buy from you? When? Why? What aspect of your product or service would best appeal to each?

Let’s go back to the pizza shop example from our differentiation post. You own a gourmet pizza shop. You make fresh, one-of-a-kind pizzas using all-natural, organic ingredients. That’s your differentiation.

Now let’s say you’ve narrowed your target market down to health-conscious18 to 40-year-olds with discerning tastes in a middle to upper-middle class income bracket.

Your main UVP might be something like: “Fresh, all-natural gourmet pizza—the ideal fast food alternative.”

Within your target market, you might have a family segment. Your UVP would be something like: “Fresh, natural, real ingredients. Indulge your family without compromise.” You might have a vegetarian segment. Vegetarians are used to having limited menu choices in restaurants, so your UVP for that segment might be something like “Pizza your way, combine locally grown veggies, endless possibilities.” For a segment with discerning, high-end tastes, your UVP might be something like: “Carefully selected gourmet ingredients—pizza for the discerning palate.”

Your UVPs for your market segments will drive your marketing campaign and influence everything from your website to the overall business operational goals. Choosing yours carefully can make all the difference when it comes to your company’s success.