I had my first meeting with my mentor about a week ago and one of the first questions he asked me was: “What is your unique value proposition?” This was a new concept for me. I started talking about some of the great features of my product (language training): English for the professional setting, fast results, money back guarantee, etc. However, as my mentor explained, a value proposition is more than a description of features. It is a clear statement of the tangible results a customer gets from using your product or service. It answers the key question that every customer asks: “Why should I buy from you?” A strong value proposition will set you apart from the competition. In fact, your goal should be to communicate so much value that your prospect will no longer feel the need to go elsewhere.
Every company needs a strong UVP. Benefits include greater differentiation from competitors, an increase in the quantity and quality of leads, and greater market share. Once again, remember to include tangible results in your UVP. Statements like “the most technologically advanced system in the market” and “best in its class” don’t mean much in today’s world. Every other company uses a similar statement and there is no way of knowing who is telling the truth and who isn’t. Ask yourself: “What makes me different from everyone else?”, “What need am I satisfying for my target market that others have not addressed?” You can also ask your existing clients. Their perspectives on why they do business with you might point you in the right direction. The following is an example of a great value proposition:
“Our company is the exclusive provider of patent-pending project management software for paving contractors, saving U.S. contractors over $34M in 2005.”
The statement is specific. It sets the company apart (exclusive provider, patent-pending software) and it demonstrates tangible results ($34M in savings in 2005). It answers the questions who, what, and why all in one sentence. Here are a few other good ones:
“Tectronica offers solutions that will improve productivity by 22%.”
“Our clients are able to reduce staff by 18% and maintain productivity levels. In most cases, their productivity actually increases.”
“Our clients have experienced pay back periods of just nine months when investing in our technology.”
