Why Your Unique Value Proposition Is Essential To Growing Your Business

I was listening to one of my favorite podcasts yesterday, An Idiot’s Guide To Saving The World, and the term “circular firing squad” was used in reference to the many climate scientists and companies trying to address the global climate challenge who often engage in internal conflicts and routinely tear down each others’ solutions in an attempt to be right or the first to market with solutions. 

As I reflected on this term, I immediately started thinking about business owners and the people we serve. It’s not uncommon to find people routinely blasting their competitors as a self-promotion strategy.

This type of behavior and the reasons behind it –some of which may be justified and true – however, can be particularly damaging because it can easily cast a dark shadow over the entire industry. This is not to say, don’t call out bad behavior when it’s justified, but when a business spends all its time tearing others down, rather than focusing on its own value proposition, it diminishes your standing in the market, trust with your clients and investors, and steals the focus away from the problem you address. 

All you have to do is think about election season with all its negative ads and the incessant mudslinging, and you get the idea. 

Differentiation – knowing and communicating your big idea, leveraging the three layers of messaging in your marketing, and your ability to cultivate strong relationships with and care well for your clients –in the marketplace is something I talk about a lot. 

But what does it actually look like to create that differentiation, or your unique value proposition, and why is it important to growing your business?

Your unique value proposition (UVP), or unique selling point, is simply the value your business creates for its clients. It addresses the benefits of your offer, how you solve your client’s most pressing problems, and what separates you from others in your industry. When you’re talking about those things, you don’t have time to get involved in the circular firing squad. You’re too busy using your voice to say what you want to say, in order to help your clients. 

To really stand out, your UVP should be:

Clear and Concise
A strong value proposition has to be easy to understand and should communicate the benefits of your service in a clear and concise way. Keep it short - a sentence or two at the most - and free from all the jargon and tech speak that’s common in your industry. The goal is to make your UVP easily apparent to your right-fit or ideal clients, so they can easily understand that your service is for them and why they need it. 

Here are few examples of what this might look like:

• Amazon: "Earth's biggest selection and one-day delivery."

• Spotify: "Discover new music and stream your favorites ad-free."

• Mailchimp: "All-in-one marketing platform for small businesses."

• Airbnb: "Book unique homes and experiences all over the world."

• Trello: "Organize anything, together."

Each of these examples are clear and concise. You can tell immediately what they’re offering, what pain point they're solving for, and the solution to it. And best of all, the people who are looking for these solutions, know these companies have something for them. 

Unique
This may seem obvious since we’re talking about UNIQUE value proposition, but your business has to clearly differentiate its service from other competitors. That means you have to have a clear understanding of what is different about your business and the way you address client problems, which requires you to have done some market research and competitive analysis to know what else is out there. 

With that insight and your own understanding of your big idea, your core values, your knowledge of your clients’ challenges, and a strong client experience, you can really begin to set yourself apart from others who might be offering a similar service or working with a similar target audience.

Customer-Focused
A strong UVP should be centered around the customer's needs and desires and explain how your service addresses them. As a service-based business, this often means focusing on the customer's pain points in an honest and authentic way (no sleazy sales tactics please), and clearly articulate how your services can make your customer’s life easier, better, or more efficient.

Specific
Your UVP should communicate the tangible and specific benefits that your clients are looking for. I often tell my clients, all of whom are service-based business owners, that you have to be specific and concrete about the results you provide. It’s not enough to say you help people live their best life or streamline their business operations. 

It’s nice but not specific enough. What does the client really want on a practical level? Maybe it’s to fit into that gorgeous dress for their daughter’s wedding without spending hours in the gym every day and starving themself with the latest fad diet. Perhaps it’s to free up 10 hours a week in their business, so they can spend more time with their kids, or maybe it’s to increase their revenue by 50%. This is where knowing your clients and the challenges really sets you apart.

What tangible results can you generate for and with your clients? 

Compelling
It probably goes without saying, but all of this has to be compelling. Your UVP should speak to your client’s emotions and inspire them to take action. 

As my friend, Becky Clabaugh, often says, this isn’t an invitation to be a “salesy weirdo.” When you speak to the real challenge and concretely articulate what the client wants right now, they are often compelled to act because they want the problem fixed. 

For example, if you’re a business owner who is really under the pile, struggling to generate consistent revenue, and you aren’t sure you’re going to make payroll in 6 months, and I say, “I can help you 2x -3x your revenue in 90 days without more overwhelm, ads, or fancy tech,” now you’re listening. 

Do you see how a strong UVP is essential for attracting your right-fit clients and setting you apart from others in your industry?

Do you see why it’s a waste of time to spend your time in the circular firing squad, focusing on other people’s businesses when you should be focusing on your own?

There’s already enough noise in the market. Focus on what you uniquely bring to the table, how you can stand out, and shout it from the mountaintops. 

If you’re unsure what your UVP is, here are a few questions to get you started:

• Who is your target audience, and what are their needs and desires?

• What problem does your business solve for your target audience?

• What makes your service different from others in your industry?

• What benefits do your clients receive when they engage with you and your services?

• How would your current and past clients describe your business to others?

You have something unique to offer and people who need it. 

Here’s to making an impact!