How do you create and test your unique value proposition and positioning statement?

Creating and testing your unique value proposition (UVP) starts with understanding your customer segment. For instance, conduct interviews and surveys to uncover the specific problems your target customers face and the solutions they seek. By identifying their needs, pains, and behaviors, you can craft a UVP that resonates with them. Testing your positioning statement through landing pages or experiments allows you to gather feedback and refine your approach, ensuring it effectively communicates your value to the market.

The key to defining your customer segment is asking yourself 2 questions🤔: * Who will value my offering? * Why? What's in it for them? Too often, I see founders that describe their segment using demographic info like age and gender. When you are an early stage startup, your focus shouldn't be on "who they are", it should be on "what they want". 🎯 People are not like all the other people in their "demo". And people don't buy something just because they are in a demo. They buy to fill a need😍. That need might correlate with a demo, but your definition should always start with their need and how they perceive value!

One of the biggest areas of confusion with UVP development (and there are so very many points), is the relationship/sequence between UVP and target prospect analysis, aka ideal client profile (ICP). While there must be a germ of an idea, one track doesn’t necessarily proceed the other as evolving ideas, inspirations and priorities will come from myriad directions. In my UVP practice…I generally begin with founder philosophy, background and objectives, then begin co-ideating concepts, fortify/expand with market/tech data, all with a loose understanding of ICP that over time becomes more targeted (sometimes the opposite) which serves as another validating/invalidating tool against the UVP’s core premise/promise. It’s not…linear.

Speaking from a founder perspective, ahead of the UVP process, and something that is often disregarded, it the moral, ethical and philosophical views of the founders, as ultimately this will drive product/service creation and need to be at the epicentre of the business in the early evolutionary stages. It is from this point, that a founder will identify a problem, engage with the customer to initially validate the need is actually there, rather than perceived etc. There must be a willingness to nurture the idea and allow it to take on a life and journey of its own in light of the data and insights identified. When the insights stack up, that is when you can craft the UVP - when it's rooted and grounded in data, insights and conviction.

Craft a unique value proposition by identifying the distinct benefits your product offers. Test and refine through customer interviews and A/B testing to ensure it resonates clearly and effectively with your target audience

Begin by framing your business from a radically different standpoint than your competitors, especially in saturated markets. Many founders get “inspired” by existing players, but that only guarantees similar positioning in users’ minds. Avoid using the latest tech buzzwords and use simple language to communicate the problem you solve, how you do it, and the expected results. You can later test if the initial value proposition works, but in the initial phase, focus on presenting fresh ideas and narratives around the problem you’re solving.

I'm not a fan of the "solve a problem" approach to creating value.😫 I've seen a lot of startups that "solve" a problem and can't get customers. Solving a problem doesn't address the value of the solution, and there just solving a problem isn't enough to create differentiation if there is a generic solution! Lots of companies can offer the same solution.😶😶😶 For Value Propositions, I prefer "We help [ICP] achieve [a specific & valuable outcome] by..." Outcomes are more nuanced and specific to a particular persona 🤩 (not just a segment), so it is easier to target a specific want and use the nuance to differentiate your offering.💯

Your Venture's Value Proposition is Your Venture's Mission--Its Reason for Existing! I've always heard that a mission statement is a description of why the venture exists. I submit that a venture exists to have an impact on a user-buyer. That impact is expressed in a venture's value proposition. The value proposition is not what the venture does, but rather what the user-buyer does. The value proposition should be written from the perspective of the user-buyer. For example: GITI makes and sells Bristle, a consumer products brand that "Gets The Gunk Out" of safety razors. That's what the product does. But, that's not the value proposition. Value Proposition: Users of safety razors save face, time, money, and water. Venture With Vision 😎

As they say, don’t try this at home. Virtually every paint-by-numbers, listicle approach I see fails to truly and credibly define the essence of your vision, service, impact, and promise. And worse, it risks failing to create intrigue and stimulate interest meaning not only will you not get the click/call, you’ll potentially lose that prospect forever (which could also be a well-funded investor). You don’t want that. I want you to understand UVP uses language as a kind of…musical, symbolic alchemy that takes a mastery of multiple domains to be effective, minimally marketing, branding, sales, linguistics, history, culture and satire. But when you nail it…pure magic. 🪄

🌟 Crafting your value proposition? Nail it by answering these: 🎯 1️⃣ What's your offer? Pin down your product or service. 2️⃣ How does it solve a problem or enhance a situation? Highlight the benefit. 3️⃣ Why you? Showcase what sets you apart from competitors. Use the formula: "We help [customer segment] [solve problem] by [offering solution], unlike [competitors]." It's concise, powerful, and speaks directly to your target audience. The Value Proposition Canvas can also be a great tool to visually align your product's benefits with your customer's needs. This clarity is your first step towards a strong market fit. 🚀

The positioning statement is mostly for internal purposes and addresses who is the target customer, what are they looking to achieve, what the competition is doing is and how your offering or solution is better.

🎨 Ready to craft your positioning statement? Focus on these four pillars: 🛠️ 1️⃣ Target Market: Who are you aiming to serve? 2️⃣ Category: What space does your brand occupy? 3️⃣ Differentiation: What makes you stand out? 4️⃣ Reason to Believe: Why should your customers trust your promise? Use the formula: "For [target market], [brand name] is the [category] that [differentiation] because [reason to believe]." This isn’t just a statement; it’s a promise, a perception you want to instill in your customers' minds. It encapsulates why your solution is not just different, but better. Make it memorable, make it count. 🌟

Before talking about benefits, talk to the market about the problems they face. Any outreach or marketing, particularly with new, innovative categories or types of technology should be orientated around this message. Once you have validated the problems your prospective, future clients are facing, you can then talk about how you address them and the benefits you bring.

Develop a positioning statement that clearly communicates how you want your target market to perceive your product. This statement should reflect your brand’s identity and core values, and it should align with the customer's expectations and needs. Ensure it succinctly describes your target audience, the benefits of your product, and how it differentiates from competitors.

Cut the theory, test the truth. Too often, founders, funders, and fakers spend too much energy theorizing UVP and positioning without simply asking the market. Try plain old asking people. Here are two straightforward strategies to quit the speculation and start getting real: 1️⃣ Apollo.io: This database boasts 300M+ professionals with every filter under the sun. I use it to split test positioning on cold emails. Then I let the metrics shape the message and positioning. 2️⃣ Landing Pages: Build a few quick pages with a "Request Beta Access" call-to-action. Drive relevant traffic through ads and watch those form conversion rates. Fail fast, learn quicker, and let humility guide your wisdom.

After I've developed my Unique Value Proposition (UVP) and positioning statement, I always make sure to test them with my target audience. It's crucial to see if they really connect and if they come across as clear, compelling, and believable. I usually use a mix of approaches, like A/B testing, collecting direct customer feedback, running polls on social media, and experimenting with online ads and landing pages. I pay close attention to how customers respond – things like click-through rates, conversions, and the comments or ratings they leave are really telling. I use this feedback to tweak or sometimes even completely revamp my UVP and positioning statement. It's all about making sure they hit the right note with my audience.

Analyzing the feedback of your customers can help you understand if you are going in the right direction and correct or improve your positioning even further. Break down feedback regarding your current positioning to the most simple statements and see what parts repeat over and over again. Rephrasing and testing again can tell you if you are going in the correct direction or not.

🚀 Testing your UVP and positioning statement? Get ready to validate! 📊 1️⃣ A/B testing: Compare two versions to see which resonates better. 2️⃣ Customer feedback: Direct insights are gold. Listen closely. 3️⃣ Social media polls: Quick and broad reach for initial reactions. 4️⃣ Online ads or landing pages: Measure engagement and conversion metrics. Focus on metrics like click-through rates, conversions, and user feedback. These insights are crucial for refining your message. Remember, clarity, compelling content, and credibility are key. If something doesn’t click, be ready to iterate. It’s all about crafting a message that not only reaches but sticks with your audience. 🎯

Validate your UVP and positioning statement with your target audience to ensure they resonate and are compelling. Use A/B testing on your marketing materials, conduct focus groups, or deploy targeted surveys. Monitor engagement metrics and feedback to assess understanding and appeal. Adjust based on this feedback to refine both your value proposition and positioning.

While crafting and testing it's important to distinguish relevant feedback from noise. Hearing the same feedback from multiple sources can mean that there is a real problem meanwhile hearing different feedback can be just small particularities that will not improve your direction.

📢 Ready to unleash your UVP and positioning statement? Here's how to make them your superpowers: 🌟 1️⃣ Integrate them across all channels: website, social media, pitch decks, sales materials. Consistency is key. 2️⃣ Ensure they align with your brand identity and voice. They should feel like a natural extension of your brand. 3️⃣ Monitor their performance closely. Keep an eye on engagement, conversion rates, and feedback. Your UVP and positioning statement are not just messages; they're the essence of your brand's promise to your customers. Use them to guide your narrative and make meaningful connections. Remember, as your business evolves, so should your messaging. Stay relevant, stay resonant. 🚀

Implement your tested and refined UVP and positioning statement across all your marketing and communications efforts. Ensure consistency in messaging across your website, social media, advertising, and sales pitches. This uniformity helps build a strong brand identity and aids customers in recognizing and remembering your brand.

Learn from how 𝐢̲𝐧̲𝐝̲𝐮̲𝐬̲𝐭̲𝐫̲𝐲̲ ̲𝐥̲𝐞̲𝐚̲𝐝̲𝐞̲𝐫̲𝐬̲ craft their messaging. I once advised a company struggling to differentiate themselves in a crowded market. Their value proposition sounded generic. We conducted a competitive analysis, but with a twist. We focused on companies outside their direct industry, but renowned for clear messaging. For example, we analyzed how Apple positions itself – simple, elegant, user-friendly – and how it resonates with their target audience. A fresh perspective! They drew inspiration from Apple's focus on user experience and crafted a UVP that highlighted their product's intuitive design and ease of use. This unique angle helped them stand out from the competition and attract new customers.

🔍 Learning from others is a game-changer. 🌐 1️⃣ Study successful startups. How do they articulate their value? What makes their positioning compelling? 2️⃣ Seek feedback from mentors and peers. Their experience is a treasure trove of wisdom. 3️⃣ Engage in online communities and forums. Share your UVP and positioning statement for constructive critiques. Observing and analyzing how others succeed can provide you with a blueprint for your strategy. Remember, feedback is a gift—use it to refine and perfect your message. Embrace the collective knowledge of those who've walked this path before. Grow, adapt, and thrive. 🚀

Look at successful competitors and other companies admired for their clear positioning and effective value propositions. Analyze what makes their messaging effective and consider how their strategies might inform your approach. Learning from these examples can provide valuable insights into crafting messages that truly resonate with customers.

The product sector is quite straight forward to do the mapping of the UVP, Novel solution. If you are from service sector such as IT service or consultancy service, you might have different audience group, in this case, you need to narrow down each audience group and perform the UVP for them. It is also really important to keep it slim and agile.

Develop a clear and concise value proposition using frameworks like the Value Proposition Canvas or the Lean Canvas. Test your statements through A/B testing, landing pages, and feedback loops to refine and validate your messaging. Tools like Google Analytics, Hotjar, and UsabilityHub can be valuable for gathering data and feedback during this process. Keep iterating until you find a proposition that resonates with your audience and sets you apart in the market.

Continuously monitor and iterate your UVP and positioning statement as market conditions and customer preferences evolve. Stay agile and be ready to adapt your messaging to new insights or shifts in the market. Additionally, ensure internal alignment with your UVP across all departments to maintain a coherent and consistent customer experience from the first touchpoint to the last.