It’s an irrefutable law of business that a product with an ineffective value proposition is going to under-perform, no matter how good the product. If you can create a winning unique value proposition (UVP) not only will prospects flock your way, but you’ll also find acquisitive firms on your doorstep willing to pay a premium price for your company.
What’s a UVP?
A UVP is a bit like a brand. At one end a brand is a company logo and visual identity, at the other end it’s the total embodiment of a company’s products, personality and the experience of its customers. Likewise, at one end a UVP is a simple marketing statement, at the other it’s a sales promise, fulfilled through the delivery of the service. In reality the UVP forms a part of the brand.
Here’s how to construct a UVP for your firm and individual products:
Unique: What makes you different?
Identify the unique combination of markets and people that you serve. This could include looking at vertical industry sectors, style or method of service delivery and the quality of client experience.
What value do you deliver?
Create a powerful perception of valuable outcomes and benefits, rather than features and costs. Provide credible examples that will hit their emotional and logical interests. For example, prove the financial outcomes, KPI improvements and personal benefits you deliver.
What’s your proposition?
Present offers to start the relationship that the prospect finds easy to digest, empathises with their burning need, and create a proposition that is hard to say “no” to. A proposition should address needs, be easy to action and have a high gain outcome.
The output of a UVP exercise should be worked into your sales and marketing process. Also a high level UVP statement that’s succinct and easy to understand is very important. Do this and not only will it have impact but it will be easy for you to communicate and be memorable. People will be able to refer business contacts in your direction because they can clearly pass on your message for you.
Five reasons why you want the strongest UVP you can get:
1. The market awareness of your company
By standing out in the crowd with a strong and unique message to market alignment, you have to work less hard than your competitors to grab attention. This means that competitors need to spend much more on marketing than you to get the same result.
2. The potency of your sales messages
Because of the emphasis on value, you are able to exploit your market awareness and pull more leads than your competitors who are more focused on product and service messages. Therefore you gain a stronger pipeline than your competitors.
3. Converting your prospects into clients
Faced with a decision between a value based proposition and a more service based offer, your prospects are more likely to choose you because you’ve pressed the important buttons. So your cost per client acquired is lower than competitors.
4. Charging a premium price for your services
The more uniquely niche and targeted your proposition, along with claiming the value high ground, the more you can push your fees up because clients are less sensitive to cost. This means that your profits go up too.
5. Attractiveness for a buyer
With a strong UVP, you’re more likely to get on the radar of acquisitive firms looking to fill a niche in their growth strategy. Without a strong UVP, you may make the long list, but not the short list, even if you have the best fit, you could go unnoticed!
Finally, an example to bring the power of our message home to you: imagine Equiteq has been commissioned by an acquirer to find them a firm like yours in your consulting sector. Unless you’re already known to us, or someone in our network, we have to start with our database of UK consulting companies and the profile of the target firm provided by the acquirer. Using our search technology, you would almost certainly make the first cut of 1000, you may make the long list of 328 firms because you’d get matched on the high level factors like company size and industry sector profile, but unless your website tells us that you fill the unique space required by our client, you could be left behind.
In conclusion, if you develop a strong UVP for your company and its services, you win all ways round. You get healthy sales revenues, lower costs, higher profits, increased equity value and you get yourself firmly on the radar of acquisitive companies willing to pay a premium for your firm.