Unique Value Proposition: How to Create One That Actually Stands Out
Why is a solid Unique Value Proposition so particularly important? Because it tells your customer ‘Why you’! A well-designed Unique Value Proposition (UVP) shows your customers exactly how you can help them in a meaningful way.. Want to stand out from the crowd? An effective Unique Value Proposition cannot be overlooked.
Last week we shared the #1 most important thing that a good ad must have to be effective, and that was a compelling emotional hook. Truthfully there are four key ingredients to a good advertisement. And while an emotional hook that resonates with your customers is crucial to get them to remember your ad, a solid unique value proposition is what seals the deal.
Why Generic Messaging Isn’t Enough: 3 Value Propositions That Don’t Work Anymore
- Family-Owned & Operated- It’s unfortunate, but this no longer really resonates with customers in many industries and niches. Why? Because we are a more mobile society than ever before. We travel more, move more, and see more than generations of the past. This means that having service providers that can stay abreast of those changing needs often means sacrificing working with only local providers. And I’m not saying that “Family-Owned & Operated” has no strategic value, it’s important to really understand IF this position has a strong enough stance in your industry to be compelling to your customers over other UVPs.
- Been in business X Years- Again, longevity often does matter…. The question is, does it matter enough to make it the one and only UVP for your company. If you have competitors that are doing it faster, cheaper, or better than yours….it may be time to shop for a UVP that will stand up against those issues.
- We’ll Price Match – In today’s world, the large chain stores have shown that price-matching is a race to the bottom for most non-chain stores. What this means is that the chains maintain their position based on volume, market share, and being able to move profits from losing markets to growing markets. For most independent business owners, using a Price-Match position will backfire because it’s rarely sustainable when competing with chains that have deeper pockets and higher tolerances for loss.
What Makes a Unique Value Proposition Work?
So, you’re now wondering what is a good Unique Value Proposition? It’s going to be something that your company can be known for & that provides significant perceived value to the customer. Notice that I said, ‘perceived value.’ Make no mistake, the UVP must highlight a real value to the customer for it to have perceived value…. it’s just that sometimes the customer’s perception of value differs from the business’ perception. For a deeper dive into how to define and communicate value from your customer’s point of view, this Harvard Business School guide on creating a value proposition offers a solid framework you can reference.
For example, I once talked to the owner of a moving company that said they trained all their packers like they were moving his grandma’s priceless china. The dish boxes had to be packed in such a way that if the box fell down the stairs, his grandma’s china would all be OK. So they could potentially capitalize on that say something like “Your Grandma’s China will be safe with us! We guarantee it!”
Another mover I spoke with said they rolled red carpet all through the homeowner’s house to protect the floors during moving. They claimed it was unique to their company in the area. So if they decided to promote that they have the “Royal Red Carpet Treatment” with every move their business would be unique and memorable because of the perceived value. And if they collect reviews that mention the “Royal Red Carpet Treatment was fabulous….” That would further reinforce their market position.
Both of these are great examples of how a well-crafted Unique Value Proposition can set your business apart—especially in industries where trust and memorability matter.
What Makes a Good Unique Value Proposition?
A strong Unique Value Proposition has three key traits:
- It’s unique to your business
- It offers clear, relevant value to your customer
- It’s difficult for competitors to easily copy
For an ad to be the most effective, it’s going to need a strong emotional hook and a compelling unique value proposition. There are two more critical components, and we will share #3 with you next week!
If you want more help with your messaging & creating ads that cut through the clutter, grab our free guide! It has some great tools that will help you keep moving forward until we drop another blog article.