Unique Value Proposition: Keys to Stand Out in the Market
The Unique Value Proposition (UVP) is a clear statement that describes the primary benefit you offer, how you solve problems or meet the needs of your customers, and what sets you apart from available alternatives. It is the core of your marketing and sales strategy. In this article, we will explore the key elements to stand out in the market and become the preferred choice of your customers.
Elements of the Agile Business Map:
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- Customer segments
- Identifying the market problem
- Product or Service
- Differentiating factor
- Sales Concept / Unique Value Proposition
- Distribution channels
- Marketing and sales plan
- Team
- Competition
- Financials
- Executive summary
Starting with the Problem, Not the Idea
Every business should stem from an existing or anticipated problem, not just an idea. This way, you can offer a product or service that genuinely solves that problem. This is one of the most valuable lessons for an entrepreneur. People don’t pay for business ideas; they pay for solutions to their problems. Therefore, it is essential to focus on clearly identifying the market problem.
Many entrepreneurs make the mistake of launching an idea without validating if there is a problem that their product or service can solve. Additionally, it is important to distinguish between external (functional) and internal (emotional) issues, as the latter are usually more powerful.
External Problems vs. Internal Problems
External problems are functional problems:
- My clothes are dirty, and I need them to be clean for an important meeting.
- I need a vehicle to commute to work daily because there is no public transportation where I live.
- I need to know the time, and I don’t have a watch.
- For my job, I need to receive calls constantly, so I need a mobile phone.
- I don’t have time to go to the market, and I need someone to do the shopping for me and bring it home.
Internal problems are emotional problems. Here are some examples using problems similar to external problems:
- I want to look important at my job, so I need clean clothes.
- I need a BMW to feel successful at 40.
- Buying a Rolex will make me feel important and successful.
- The new iPhone gives me status and makes me feel successful.
- I’m afraid of getting COVID-19, so I’ll pay someone to do my shopping and reduce the risk.
Purchase decisions are often based on emotional needs, which are more powerful than functional ones. Problems like fear, the desire to feel important, the need to predict the future, and the search for peace and connection are crucial when designing a product or service that meets these needs. Therefore, it is vital that, in addition to defining the external problem, you also understand the internal problem that your product or service can solve.
Characteristics of an Effective UVP
- Clarity: Your UVP should be easy to understand. Potential customers should grasp the value you offer in seconds. Avoid technical terms and complicated phrases.
- Relevance: It should resonate with the specific needs and desires of your ideal customer, directly addressing their problems or aspirations.
- Differentiation: Highlight what makes you unique. What do you offer that your competitors cannot? It could be a special feature, an additional service, a unique methodology, or your business philosophy.
- Clear Benefit: Emphasize the main benefit that customers will receive. Instead of just describing what you do, show how you will improve their life or solve their problems.
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Creating a solid and effective Unique Value Proposition is essential to stand out in the market and attract your ideal customers. Make sure it is clear, relevant, differentiated, and communicates a clear benefit. You can effectively communicate why your product or service is the best choice by incorporating elements such as an attractive headline, specific benefits, social proof, and a compelling call to action.
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