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Creating a unique value proposition (UVP) involves identifying what makes your product or service stand out from competitors. Start by deeply understanding your target audience, their needs, and pain points. Analyze your competitors to find gaps in their offerings or areas where your product excels. Focus on the unique benefits your product provides that directly address customer needs. Your UVP should be clear, concise, and emphasize how your solution is better or different. It’s also important to validate your UVP with customer feedback, ensuring it resonates with them. Finally, communicate your UVP consistently across all marketing materials and touchpoints, making it the core message that defines your brand.

It can be tempting for businesses to want to overinvest in this area before they are ready to do so with market research studies and spending too much time on brand building exercises. For startups, I'd recommend focusing on a few simple steps: 1. Hypothesize: Creating an ideal customer profile first with a rough market sizing so you understand the total addressable market 2. Testing: Bring on your first 100-1000 customers based on similar demographics, behaviours, needs, etc. 3. Iterating: Refining the ideal customer profile and creating segmentations as you bring on more and see the value of interaction, usage, and need. As you go, you will be able to prioritize super users and evolve your targeting intentionally.

Given the goal is to create a 'unique value proposition', you may want to identify one or two underserved segments in the market. If your competitors have a broad value proposition which doesn't focus on your target segment you can hone in on this segment. To go about this, I would suggest recruiting customers of your competitors to interview. The goal here is to understand if there is a genuinely underserved group. If you have already launched and have customers / users, my suggestion would be to interview these customers and bucket them into potential customer segments. Here you may find that certain segments are underserved. Or, you may find the problem that certain segments are facing is more nuanced than your competitors highlight.

In case it isn't clear, you should actually speak directly with your customers and not just assume you understand them from taking a look at their website and your CRM. I see too many marketers feeling like they're on the outside of the business.

Know your customer If you do your research you can identify what they want and how they want it solved. Then just create that solution because you listened to them. Why guess when you can just review what your customer base is looking for.

Porter's five forces model is the best way to analyze competitors for making powerful UVP. This includes- 1. Competitive Rivalry 2. Supplier Power 3. Buyer Power 4. Threat of Substitution 5. Threat of New Entry

If you want to create a value proposition that's differentiated from competitors, you have to analyze how your competitors' value propositions succeed or fail in addressing your target customer's job to be done. Simply comparing features and benefits is a reasonable starting point but wholly insufficient, as it doesn't get at the relative of importance of those benefits to the customer OR line up benefits against their key buying criteria (needs/jobs). My favorite tool for competitor analysis is the "strategy canvas" - (google it) - a visual way of lining up the customer needs on one axis, with the other axis showing how well the product (each product is represented by a different line on the canvas) does at addressing the customer needs

Some tips for analyze competitors: - Conduct a SWOT Analysis: Perform a SWOT analysis for each competitor. Evaluate their market position, product or service offerings, marketing strategies, and customer relationships. - Assess Market Share: Determine the market share of each competitor in your industry. This information can help you understand their relative size and influence within the market. - Examine Pricing Strategies: Analyze the pricing strategies of your competitors. Understand their pricing structures, discounts, and promotional strategies. - Review Marketing and Branding: Analyze your competitors' marketing strategies, including digital presence, advertising channels, and messaging.

Conduct a comprehensive SWOT analysis of competitors to uncover their Strengths, Weaknesses, Opportunities, and Threats. Leverage these insights to strategically position your business by capitalizing on competitor weaknesses, addressing potential threats, maximizing your strengths, and exploring untapped opportunities, ensuring a distinctive and compelling value proposition in the market.

Competitor analysis shapes a compelling UVP. McDonald's values speed and affordability, while Chipotle focuses on fresh, customizable food. Consider strengths and weaknesses; Apple's design vs. Samsung's customization. In marketing, Nike empowers, New Balance prioritizes comfort. Trends, like Tesla's EV growth, impact competitiveness. Know competitors' customer base—Facebook's reach vs. TikTok's younger users. Identify their USPs, like Hertz's variety or Zipcar's sustainability. Spot gaps and opportunities, as OnePlus did in smartphones. A competitive matrix emphasizes unique advantages—Lyft's driver-friendly platform vs. Uber. Leveraging competitor insights helps create a compelling UVP addressing your audience's needs.

Your unique value proposition also needs to be important enough for a customer to make a purchase decision or switch from a competing solution. And the more complex the decision to change (either in terms of effort or cost or risks), the more compelling the reason to change needs to be.

FLIP THE SCRIPT: Everyone’s out here trying to "sell the positives," but people are wired to wait for the "but" to drop. They know it's coming. And if it doesn’t—because you're only serving them the fairytale—their suspicion levels will skyrocket. So, FLIP THE SCRIPT—lead with the negatives. own them. Then, drop the BUT. Let me give you an example: 1) "Our program is very long, it's complicated and it's expensive." 2) "BUT, it works better than anything else you have ever tried." The second part of the sentence [positives] becomes MAGNIFIED because of the "damaging admissions" that "BUT" amplified. That’s the pattern interrupt—it’s unexpected, and it makes the second part hit even harder (all while boosting your credibility).

Being a Neuro-Linguistic programming practitioner and using it to craft marketing campaigns, I use what we call the Values Elicitation technique. It is a series of questions that identifies and digs deep into the brand owner's mind to show the things that are important to them. The unique combination of their values, strengths and purpose will make for a strong and impactful value proposition.

I find the strategy canvas a powerful tool to help define a value proposition. If done correctly, not only does it highlight the choices (trade offs) that competitors are choosing to make when designing their value propositions, it also highlights the spaces where customers have unmet needs that no competitor is addressing, or areas where competitors are under or overshooting. Defining your value proposition is all about figuring out which "bundle of tradeoffs" (to quote Steve Jobs) you're going to target. Are you lower-cost? Easier to use? Do you allow the customer do so something they've always wanted to, but no other product allows? ...and remember - it's probably a good idea if you make a choice that will be sustainable over time...

An essential and helpful tool is the positioning pyramid: 1. Establish Your Competitive Arena: Identify the category (field/industry/Job to be done) in which you want to play and win. 2. The Parity Point: What are the minimum benefits/features you must provide to compete in that space (field/industry)? 3. Standing Out : What Makes you (your product/ service) truly Unique? Why will potential customers choose you over the alternatives? Are your differentials important and relevant? Are you making people's lives better?

In my experience, asking people if they like or do not like your UVP is not that valuable. A better approach is to conduct A/B tests and see which version of your UVP gets more clicks, form submissions, or (the best option) sales. This method provides concrete evidence of which value proposition truly resonates with your audience. Analyzing the data from these tests, you can understand what drives engagement and conversions, allowing you to refine your UVP based on real-world feedback. This approach ensures that your value proposition is effective and aligned with your customer's needs and preferences.

One underappreciated approach for this is a/b testing through Meta ads. I like to set several ads with the same visual and a different headline based on different approaches to expressing the value proposition, e.g. pain, driven, gain-driven, and focused on the job to be done. You run it as a Meta ads experiment testing the ad groups (each ad group has the same audience but a different angle ad within it) and then measuring the click through rate and if you have enough volume, the sales too. You can also do this with emails through testing different subject lines to the same cold audience.

After creating your standout pitch, test it with surveys or interviews. Ask what people like, and dislike, and how it influences their decisions. Use feedback to improve and fine-tune your pitch. Keep doing this to always stay in tune with what your customers want.

Always use a combination of qualitative and quantitative approaches. Qualitatively, talk to your ICPs and identify which variation of your value proposition makes the most sense. Quantitatively, A/B testing is the best approach. The quickest and most effective approach I've used it to create variations of a google ad, target it at your ICP and see which performs better. This can then go into your landing page, to be further A/B tested.

In my experience, test your value proposition with people at different levels of hierarchy in your target company. Because sometimes the top-level (CXOs) are not the users themselves, you need to learn what the problems faced by the end users (maybe admin level) are and include those in your pitch. Continuous iteration is no doubt, super important.