One of the more common complaints I hear from business owners how the competition getting tougher every day. The fact is that competition won’t disappear and competition is good for you because it makes you better. But you need to build effective strategies into your business that can reduce the competition’s pressure on your business.
Let’s look at the fundamental approaches: First, defining your Unique Value Proposition (UVP) and having a written Guarantee.
Unique Value Proposition is also known as a Unique Selling Proposition (USP). Many use the terms synonymously. Personally, I like the term “value” vs. “selling”, because at the end of the day, the reason your customers buy from you is the overall value you provide, not just what product/service you are selling.
To define what a UVP is, break down the phrase and define each word: Unique – what distinguishes you from your competitors. It’s the “what you do” and “how you do it” that differentiates your product/service.
Value – what your customers get for their money or the intrinsic worth of your offering to your customers. It’s also important to note that value is in the eye of the beholder, and what we think our customers’ value can be very different from what they really value.
Proposition – It’s your proposal to your customer. It must be truthful and you must be able to qualify and quantify your claims and makes your UVP that much stronger! Your UVP is a distinctive message aimed at your target market. Your customers must believe they are getting more than they are giving up (perceived value) in relationship to other alternatives, which includes buying nothing at all.
Does your business have a UVP? It’s amazing how many businesses don’t, or if they do, they clearly don’t communicate it to their target market. If your UVP needs some updating (or if you don’t have one at all), then it’s time to do some market research. Take a look at your competition. You need to know what they are offering. And, you need to know what your customers (and prospective customers) value, why they value it, and what result it achieves for them.
An effective approach is to contact twelve of your top customers. Ask them why they buy from you and what makes you different from your competition. They will give you your UVP (but in their words) and will likely provide reasons and insights you never knew or expected. Additionally, competitive research can also complement and refine some of the information you receive from your top customers and help you better define your UVP.
Talk with Ohio business coach and Certified Exit Planning Advisor, Ralph Berge. Call him 440.838.0991.
