Crafting an Effective Unique Value Proposition

As a small business owner, when was the last time you thought about what made you stand out from other businesses that offer similar services?

If your answer is never, then beware. If you don’t know what makes you unique, then your customers don’t either, and shopping with you will become a ho-hum proposition.

Every business should be able to clearly define their unique value proposition in order to form the foundation for marketing campaigns and customer interaction.

What Makes You Stand Out?

Successful businesses have learned to take a unique value proposition and to use it as the basis for the way they do business.

Consider business behemoths such as Wal-Mart or Amazon. It’s difficult to think of another store/website that truly competes in the same sphere. Why? Because these companies have taken what they do best—great prices, huge selection—and developed an entire business strategy around making sure they clearly stand out as they leader in these areas.

Your auto parts store may not be the next Wal-Mart, but it can be the place people think of first when they’re working on a car. The key is knowing what makes you unique and capitalizing on it.

Do You Really Need to Know Your Unique Value Proposition?

The answer is, unequivocally, yes. More than half of small business start-ups fail within the first year.

As discouraging as this statistic can be if you’re a small business owner, you can take heart in knowing that being able to clearly define your unique value proposition will drastically improve your odds of success. Why? Because your UVP drives your marketing goals and strategies, and enables you to build a cohesive message which will communicate clearly to your audience.

It defines who you are as a business and gives your customers a reason to think of you first rather than your competitors.

Transparency is the Best Policy

As you’re defining your UVP, keep in mind that the goal of the process is not to decide what your goals for your company are. This is not the time to think of all the great things you want to be true of your company. Instead, focus on who you are right now and determine what it is you already do best. Be transparent with your UVP, because once you start making marketing claims, you’ll need to back them up or you’ll lose customers.

Your unique value proposition should be the foundation on which you build your company’s image. Knowing how you want to portray your business to the shopping community will enable you to deliver direct, focused marketing messages designed to set you apart from other businesses around you.