Best trick to stand out - develop a USP and value proposition.

Stand out from your competitors with a strong value proposition.

The word ‘value proposition’ is often referred to in the marketing world but in all my years as a brand and marketing strategist in Perth and the UK, rarely had I seen it created or shared amongst the marketing folk. And that’s not an insult to the organisations I worked for, it’s just other things either took precedence or the value proposition was created before my time and its core components became ingrained in the essence of the marketing and brand communications.

Developing a value proposition is especially important for small and medium sized businesses where there may be little or no marketing capability within the company. Reason being that it helps businesses work out what makes them unique and it helps feed the development of the all mighty important USP (unique selling proposition).

So before we get into the juicy details about how to develop your USP and value proposition, here is a quick intro to the terms:

The definition of a value proposition is:

‘an innovation, service, or feature intended to make a company or product attractive to customers’

A unique selling proposition (USP, also sometimes called a unique selling point) is:

‘a factor that differentiates a product from its competitors, such as the lowest cost, the highest quality or the first-ever product of its kind. A USP is thought of as what you have that competitors don't.’

Why is having a USP important?

A unique selling point (USP) is a differential factor, which enables the business to distinguish itself from other competitors in the market place. A USP is important because it offers something better in the consumer’s mind who could be swayed towards choosing an alternative good or service.

A USP needs to be focused and single-minded. The more single-minded the USP is then the more chance it will resonate with the target market and not confuse.

To develop a robust USP, it helps to work on the value proposition which is more complex and takes time and collaboration with leaders in the business to agree. When I developed the value proposition for Silver Chain’s social care division in the lead up to the aged care market deregulation in 2016, it took a few weeks to develop. It required engaging key stakeholders on what they viewed as the most important unique proof points that make the social care offering different to the competition and sustainable. Once you collate everyone’s input, you can really get to work on refining the value proposition.

What makes up a value proposition?

A value proposition is made up of several components that help you determine who your target market is, what services you will offer, what customer pain point or opportunity you are taking advantage of and proof points as to why your target consumers should choose you. To develop your value proposition, you need a strong understanding of the business and the brand you are developing the value proposition for.

Here are the key components of a value proposition:

• Define the products or services you offer

• Define the target market you plan to sell your products or services to

• Define what your target markets’ needs are, what tasks they need and what their pain points are in achieving their goal

• Define how you can will benefit your consumers

• Why you are the best business to offer this service

• Define who the competitors are who don’t offer what makes you unique.

Plump Marketing value proposition outline:

Our: [products and services]

Help: [customer segment}

Who: (want/need tasks to be done)

By: (reducing pain point)

And: (improving or increasing an objective)

Because: (series of proof points that make you special and unique which your competition can’t replicate)

Unlike: (list key competitors)

Simple! And if it isn’t simple and you struggle to work out your unique proof points then it’s worthwhile considering creating something that will make your offering unique, otherwise it will be challenging to stand out amongst the pack.

If you’d like assistance working out your brand’s USP and value proposition, get in touch.