Your Unique Value Proposition
You can overcome your competition by offering products or services that are unique to your industry. When attempting to set your business apart from the rest with a unique product or service, you may arrive at situations where your customer does not fully understand your unique benefits. You will need to educate your customers on why your product or service is better for their personal or business needs.
A potential setback of creating differentiators such as unique features, services, and benefits, is that you are open to imitation by your competition if your differentiators are not proprietary. In this sense, your uniqueness will last only as long as it takes your competition to mimic your approach. Additionally, by offering too many differentiators or products, your customers could become confused, overwhelmed, or feel that you’re trying to sell them something they don’t need. To resolve this, take precautions and carefully educate your customers on the offerings and the importance and relevancy of the additional products or services.
Value Proposition. Customers have more options at their disposal than ever before, with that in mind, a well-drafted value proposition should be at the core of your sales collateral to solidify your competitive advantage. A value proposition is a statement of promise in terms of overall value delivered to the customer, and is a major factor in increasing sales. A value proposition helps you define how your product is the better solution for your customers’ needs. A strong value proposition is persuasive and outlines why the customer should purchase your product or service over the competition.
Having an effective and unique value proposition (UVP) is of critical importance as it distinguishes your business from your competitors. A UVP should uniquely identify the value of your business and should resonate strongly with your customers. For example, if you offer a product or service for the price of $10, and your competitor offers the same product or service for $11, what stops your competitor from stealing your customer if they match or lower their price? While price is considered a UVP, unless it is tremendously lower than the competition, you need to offer better and more UVPs.
UVPs may include:
- Better price point
- Better product quality
- Better location
- Better customer service/ hours
- Better warranty / guarantee
Your business can evaluate and enhance customer benefits through gaining feedback from reviews of current, previous, and potential customers. Through this method, flaws within your business can be identified and needed corrections made. Another valuable method is to monitor your competitors’ marketing efforts, as well as gain insight into your reputation, by reviewing forums, complaint boards, and competitor websites for credibility, design, and customer testimonials.