May 3, 2017

Uncover your unique value proposition

Categories: 
Published: 3 May 2017 

A unique value proposition (UVP) is something that is vital for every business. It could be the difference between a customer making a purchase from your website rather than the competitors. Having an effective UVP will see your business increase its conversions and ultimately profit.  

But what is a UVP? As defined by Affinity Alliance, it is “a statement that communicates the unique value provided by your business to your target customers.”

In other words, it’s all about what you can do for your market that your competitors can’t. It is able to speak directly to the target market and let them know why they should choose your product or service over the competitors. However, it is easy to confuse what exactly constitutes a UVP. A UVP is not:

  • A call-to-action
  • A headline
  • An explanation of your product or
  • An introduction to your business.

A UVP not about being the “best” (doesn’t every company think they are the “best”?), but about what unique value your company can offer.  

That just sounds like a slogan? Wrong! UVP is not a slogan or catchphrase. It is more than “L’Oreal. Because you’re worth it.” This statement does not let customers know what services they offer nor what a solution is.

An effective UVP will cause customers to not only be interested in your website but ultimately make a purchase. It’s easy to see why it is such an important aspect to businesses.

If a UVP doesn’t clearly state what it offers and why it is different from the competition, businesses will experience a higher bounce rate and see less conversions. That is why it is crucial to get creative and come up with your own UVP.

Some great examples of UVPs include:

Dollar Shave Club

Source: Dollar Shave Club

The Dollar Shave Club’s UVP is short, snappy and simple: “a great shave for a few bucks a month.” There’s no question left remaining about what you’ll get from this company, or how much it will cost you. The UVP is even finished with a call-to-action, simply stating “Do It”, which takes customers to a page where you can select your blade. While the UVP doesn’t make clear who the target market is, it doesn’t really need to.

Sunpower

Source: Sunpower

Sunpower’s home page has a series of three UVPs that leave you with little question about what the brand does. The UVP “no other solar panels generate so much energy. Or envy” is accompanied by the statement “SunPower systems are as desirable as they are powerful”. The combination of the two leaves customers thinking solar panels aren’t just big, unsightly panels stuck on a roof, they’re actually something that looks good and can be envious.

Logan Law

Source: Logan Law

Between Logan Law’s name, its UVP “Have you suffered a total injustice?” and the accompanying call-to-action “contact the justice league”, it is clear what Logan Law will do for you. Asking a question with a yes/no answer makes it even easier for people to know whether or not they need Logan Law’s services. Going with the ‘justice’ theme also makes the website seem more fun and interesting than other law offices, which could potentially attract more clients.

Creating a UVP

So now you’ve seen some examples, the next thing to consider is how do you create a great UVP?

When trying to create a UVP, there are a few things you need to keep in mind:

Who is the target market?

There is no point having a UVP if you’re trying to target everyone. Narrow down your audience. Look at some key demographics - gender, age group, income, geographic location, to name a few. You can then try and target your UVP toward this group rather than trying to appeal to the a larger population. Narrowing down your target market will mean you will have a far higher success rate than if you try to target the general public. Undertake some market research and find out who is using your business’ product or service, and target your UVP and marketing material towards this audience.

When you’re deciding who to target it’s always a good idea to remember the 80/20 Principle - the top 20% in any market spend 80% of the money. The top 4% spend 64% of the money. Therefore, targeting the top 4% is 16 times more profitable than trying to target everyone. If you can target your UVP to the top 4%, you’ll see profits increase.

What problem are you solving?

A UVP is all about a problem that you can solve or improve that others can’t. You need to ask yourself what problem your product or service is solving. However, the problem can’t be too simple, or you won’t gain any customers.  

Can people understand it?

Source: Nielsen Norman Group

Your UVP is something that everyone needs to be able to understand. After all, if it comes across as convoluted and confusing, people just aren’t going to be interested and you won’t have any conversions. Don’t use any business jargon. Just imagine you’re explaining to your friends or family what the offer is and how they would benefit.

It is important to make sure your UVP can be understood quickly. Make sure it can be read and understood in five seconds. The average page visit lasts less than a minute, and people will generally decide to stay on a page within the first 10 seconds. So it’s important to make a good first impression with a clear UVP. If it’s not that clear or understandable, then it’s best to rework it.  

Do customers know what they’re getting from your business?

Your UVP needs to clearly convey what customers are getting from your business. If your UVP is just business jargon and doesn’t clearly state what service or product you are offering and how that will benefit the customer, then why would anyone stay on the webpage? Make sure it’s customer focused and clearly conveys what you’re offering. Think about “what’s in it for me” or “why would I use this service” rather than listing your businesses attributes. Putting yourself in your customer's shoes will help you to create a clear, concise message.

Avoid hype but include boosters

Source: Pharmacy Online

Chances are you don’t really offer a “never before seen miracle cure!” type of product. An effective UVP will avoid hype, the use of “best”, and confusing business jargon. Do phrases like “value-added interactions” really mean much to the audience?

Instead, you can add boosters, especially if it’s something the competition isn’t offering. This includes words and phrases such as:

  • Free shipping/Fast shipping
  • No setup fee
  • No long-term contract, cancel anytime
  • Money-back guarantee

These words are pretty simple, but it could be what gets a customer over the line to purchase from you and not your competitor. Pharmacy Online’s UVP, pictured above, is the first thing you see on its landing page. To further entice shoppers, they offer free shipping on orders over $149. This means there is no confusion for shoppers during the checkout process, they will clearly know they will not have to pay extra fees if they spend over a certain amount.

Before going live    

Before finalising your UVP, it’s a good idea to follow this checklist to ensure your UVP causes the most success:

  • Have your UVP on your home page
  • Back it up with a guarantee
  • Repeat the UVP throughout the website and promotional content
  • Make sure you can deliver on the promises in your UVP

Thinking about these factors will help you to uncover what could be your businesses UVP. Do your research, differentiate yourself from the competition, and always remain customer focused. If you are able to do this, you will be able to create an effective UVP for your business which will help to increase your conversions.     

 

Ben Maden

Read more posts by Ben

Leave a Reply

Your email address will not be published. Required fields are marked *

Shares