Many go into business without realizing the importance of this phrase that is often used in marketing. Your Unique Value Proposition distinguishes your product or service offering from others. It defines the unique value you offer your customers and the reason why they should be buying from you and not from the others. Here are the benefits of knowing your UVP:
- If you don’t know your UVP, your tendency is to copy what is popular in the market. This sets you into a never- ending chase of what is more popular. This sets you up on a course of catching up with competition, adding features to your product in order to beat your competition. Eventually, your margin becomes very thin.
- Without knowing your UVP, you will be catering to a broad market that has many varying demands. However, the best way to approach the market is to find a niche, or a segment of the market that will appreciate and patronize you where you are strong in terms of product features and customer experience. You cannot sell a high- end furniture by being in every department store. That will only increase your inventory and distribution cost. Define your UVP and then choose your battle.
- Competing for customers on the basis of price is not a wise thing to do. Eventually, your competitors will do the same and all of you will have a thinner and thinner margin. The best way is to stick to what you do best and find the customer who will buy because of your value proposition and not only because of your price.
- Knowing your UVP brings you to sustainability much faster. Your business becomes sustainable once you have developed loyal customers who will keep on buying your products and will refer you to their contacts. This cannot happen if what you are selling is just like the others or has no reliable unique feature.
- Your UVP is not only in your product, but in every stage of your business. It may be in the way you treat your customers, your after service, or your packaging that stands out. Look at every stage of customer experience as an opportunity to create your UVP.
If we look at how God created each one of us and the experiences we go through in life whether good or bad, every person has a UVP. That is why we cannot compare ourselves from the other person and try to copy the steps he made to reach success. The bible says that we are fearfully and wonderfully made. You have to be YOU as you keep on walking with God to be successful. The same principle applies to business.