Do You Have a Unique Value Proposition?
I spend a lot of time with my clients, talking about their unique value proposition and the market position it creates. I am passionate about it. It's the very foundation of what makes businesses succeed. And to be truthful, many businesses can't succinctly articulate their value propositions or why they are unique in doing what they do. Then the leaders wonder why they are having trouble increasing sales. The opportunity is simple: companies that clarify and align to a unique value proposition find it easy to grow, increase revenues and profits, and create more impact in their industries.
Here are three questions to answer if you want to improve the tightness of your unique value proposition:
1. How well do you REALLY know your customers (and what is motivating them)?
I am not talking about whether you know who they are, where they live, or what they do. I am assuming you know that. Do you know WHY they are choosing you (or not choosing you) and what motivates their choices?
Customers often don't tell you what motivates them and what determines value in their eyes. They tell you what they want you to hear. However, if you are truly going to serve them better than any other alternative and be unique in their eyes, you must understand the real motivators (that they aren’t necessarily telling you). Whoever understands the real motivators and serves them best will always win.
Here's a simple example. I worked with and for KEEN Footwear for about five years...great company. A segment of KEEN's customer and retailer base has significant loyalty to KEEN for its commitment to sustainability and giving back. KEEN prides itself on excellent footwear, but the differentiator and the willingness to pay more among many customers has nothing to do with the product itself.
With thousands of alternatives available around any given product, customers pick very specific things that resonate with them and that determine "value" or "better" in their minds. And these resonators are based on what motivates them as people. Knowing these motivators enables you to serve their real needs and win them over.
For a deeper dive, refer to a previous post on "What Truly Motivates Your Customers."
2. HOW and WHY are you unique in meeting their needs (and true motivators)?
Understanding the real motivators of customers may seem complex, but customers are quite simple in their choice process. Customers choose offerings based on a hierarchy of their actual needs and motivators and then base their decisions on a simple equation: Offering + Experience over Price.
Because of this formula, there are three primary market positions in any industry: Best Offering, Best Experience and Best Price (or Value).
Your unique value proposition establishes your market position. And your ability to back up that value proposition in every interaction determines what you can charge and how you differentiate yourself from all other alternatives.
So my questions are:
- How clear are you specifically on what parts of your offering and/or experience create unique value in customers' eyes?
- Do you know your market position relative to all the other alternatives, and are you focused on what it takes to win it?
3. How RUTHLESSLY CONSISTENT are you in backing up your value proposition in every interaction?
Unfortunately, people are fickle. Customer motivators change. And customer expectations are evolving faster than we can keep up with them. With countless alternatives for customers to choose from, if you want to win, you have to be both excellent and consistent with the intent of building deep loyalty.
You must deeply understand what makes you unique and commit to delivering it in every interaction. Companies that do this well are fanatical about aligning their values, culture, processes, systems, leadership training, etc., to create the unique value that customers experience.
So...how ruthlessly committed and consistent are you to creating unique value in every interaction?
Answering these three questions will give you a new foundation for growing your business, one customer and one unique experience at a time.
Unlock Your Clarity. Unleash Your Success.
Coming in April 2023, Rob will be leading his foundational clarity program, experienced by thousands of leaders worldwide. This 13-week program will facilitate you to develop your own clarity that takes your success to the next level. This program is now available to any leader from any company. Don’t miss this opportunity!
