One of the first elements of concern when commencing a new business venture is differentiating your products and services from the rest. When you enter a market, you need to ensure that you meet customer expectations or, better, go beyond them. And to do so, you have to develop a unique value proposition to stay at the top of your game.
A unique value proposition or more commonly known as a unique selling point (USP), is what sets you aside from your competitors. It explains how your products carry higher value and what makes them special. Your USP should be something that instantly attracts potential clients and urges them to learn more about your business.
However, remember before selling your brand to customers, you need to sell it to yourself. Therefore, ask yourself what’s so special about your products or services that it will encourage people to make a purchase? Is it the price point or some extra benefits? Whatever it is, if your unique value proposition does not appeal to you, it is improbable to attract customers.
Having a USP is vital to increase revenue and to stay ahead of the competition. We live in a highly competitive world. Becoming better than the rest and gaining competitive advantages is a never-ending race here. Therefore, coming up with effective strategies to beat the rivalry and maintain your market position is critical. However, not many entrepreneurs are aware of the intricacies of the business realm. Most even jump on the bandwagon without proper business knowledge and skillset, explaining why they can’t continue business for long. Fortunately, eLearning platforms can be of immense use for entrepreneurs willing to learn the ropes of business management. They help expand your knowledge base and teach you how to devise effective business strategies. For instance, the online MBA no GMAT AACSB degree is a popular choice among emerging entrepreneurs of our era. Besides, the elimination of aptitude tests makes the degree more accessible for business students willing to continue studies at graduate levels.
Now, the primary question is how to develop a unique value proposition for your business? Keep reading ahead to get some insightful tips on the matter.
Figure out your target audience
If you are one of those entrepreneurs who think they can sell to everybody, then you are on the wrong track. The first factor every new venture should consider is to make peace with the fact that not everyone will appreciate your service. There will always be people criticizing your business, and that is where you’ll learn to improve.
Instead of focusing on selling to a large audience, figure out your niche audience. Research everything about your ideal customers from age, gender, culture, to education levels. In short, create a buyer persona of them. It will help you market your products more effectively by focusing only on what interests your target audience.
Explain how your venture is different from your competitors
Researching only about your target audience isn’t enough to sell your products or services. You also need to conduct a thorough research about your competitors. Determine their core competencies, mission, and vision. Figure out their unique selling point and understand their business value. Similarly, learn about their operations, their systems and procedures, and also their management. Analyze every essential component of your rivals in the industry.
If your rivals have a physical store or outlet, visit it and observe customer behavior. When you are entirely aware of your competitors’ functionality, you can put up a competition matrix to stay ahead. Furthermore, knowledge about your competition’s operations can help you develop better marketing ideas and develop a unique value proposition quicker.
Lastly, do not ever assume that you have zero competition. As mentioned above, competition is persistent in our globe, irrespective of which industry or field.
Identify and explain why your product is needed
If your target audience isn’t aware of the importance or usefulness of consuming your product, they won’t purchase it. You must explain and identify what pain points your product caters to and why there is a need for it in the market. Is your product capable of doing something entirely different? Is it more affordable than its competitors? Are there no better alternatives to it? There are several more questions to address.
It is your responsibility to present solutions to the problems your product/brand can resolve. Try to figure out how your products are helpful for customers. You can even use your competitive matrix or a simple spreadsheet to help you better analyze your product developments as opposed to your competitor’s.
Be clear and specific
Once you can identify the need for your products and services, it is time to deliver the message. However, you must be careful while delivering the message. You need to ensure that your message is clear, specific, and precise. Avoid using any confusing imagery, graphics, or fonts. Your goal is to lure your target audience into purchasing your products by your message instantly. Also, remember to make your message short yet captivating. Lengthy statements are time-consuming and often not a promising marketing tactic.
During your research, if you identify a deceiving or harmful promise your competitors are making, you can use it to your benefit. Misleading messages can be about a dangerous ingredient, an unwanted feature, or prohibited practices. You can highlight the fact that your brand, on the other hand, is not involved in any similar act and ensures to provide customers with the safest products.
A unique value proposition can increase brand awareness and help expand your client base tremendously. It helps communicate the advantages your company possesses persuasively and effectively. Having a USP can also lead to an increase in sales and revenue. And most importantly, it can help separate your products from your competition.
A unique value proposition adds value to your brand and provides your customers with more value for their money. You can add your USP in different aspects of your marketing plan, but make it visible.