As an entrepreneur, one of the first questions you should ask yourself is, “Why should customers care about my product or service?” Your unique value proposition is what sets you apart from the competition, draws people’s attention, and makes them want to purchase.
But, before selling your product or service to anyone else, you need to sell it to yourself. To do so, map out why your product matters and pinpoint what makes you unique. You’ll know that you’ll be able to market yourself effectively if you can achieve this. To help you get started, here are five tips for creating a unique value proposition.
1. Find Your Target Audience
Your target audience is the perfect place to begin. Many new entrepreneurs believe they’ll be able to market themselves to everybody. But unfortunately, this isn’t possible.
Try to zero in on your ideal customer. Research everything about them, from their gender, age, and income, to their hobbies, music tastes, and dislikes. Use this information to craft ideas for how to pitch to this ideal customer most effectively. For more help with this step, discover our Market Research Checklist.
2. Know Your Competitors
Researching your competitors will allow you to identify areas of the market that they aren’t covering and possible areas of weakness that you could take advantage of. Take a look at their entire business model, from their mission statement to their staff, and even their core product. Identify what they’re doing well, and what they aren’t, and look for areas in your business to improve upon.
If your competitor has a brick-and-mortar store, go there and observe how customers behave. Even consider asking them what they like or dislike about your competitor’s business. You can only hope to set yourself apart if you know what’s been done already, and how you can do it better.
3. Discover Your ‘Why’
It’s not enough to know what your product does, or how, you must also identify why your product is needed. Try to find one key aspect of your product that can help your customers and something that it does differently than similar products. Is it a time saver? Is it more affordable?
Consider creating a spreadsheet listing your competitor’s product and your own. Cross off the things they do, that you’re also hoping to do. Hone in on the unique aspects of your product and champion them. Every business thinks they have the best product, but this useful exercise will allow you to zero in on exactly what you do that’s special.
4. Go Against the Grain
If your product goes against the grain or contradicts a stereotype inherent to a particular industry, use that as a powerful part of your selling proposition.
Say, for example, you wanted to open a gym that catered exclusively to novice weightlifters and fitness enthusiasts. Advertising this fact prominently will resonate with people who may find the gym intimidating. As a result, you’ll gain a powerful marketing tool and a unique selling proposition.
5. Set Yourself Apart
It’s good to champion the things that your product does, that others don’t. But, it’s also helpful to look at this from the other side. Does your product not do something that your competitors’ products do? Maybe your product cuts down on waste, or it simply costs less?
For example, many of us rely on fans to keep our homes cool in the summer. But, their noise can be problematic when you’re trying to sleep at night. A great way Dyson set themselves apart from their competitors is by offering a range of bladeless fans, that achieve the same effect with none of the noise.
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