Purpose
This is a guide for small business owners like you, to help you improve your Unique Value Proposition.
In this article, we’ll give you a simple structure to construct your own value proposition which forms part of your brand positioning. We’ll cover that as well as one is a part of the other.
If you’ve not already seen part one, I’d recommend reading that first as it covers the three key things, you’ll need to pull together to form your value proposition.
Introduction
Crafting and communicating your unique value proposition and having clear positioning is a real game changer for you and your business.
Let’s remember why we are doing this…
- Reduce or get rid of price competition.
- Be talked about because of something special you do that others don’t!
- Enhanced profits.
In part one we concluded that once you have gathered insights from steps 1 to 3, we then need to distil them into a clear and concise value proposition or brand positioning statement.
This statement should answer:
- What specific benefits or outcomes does your business offer to customers?
- How does your business address their needs or solve their problems?
- What makes your business unique, different, or superior to competitors?
Crafting your brand positioning statement:
I draw on the best practice guidelines from the Chartered Institute of Marketing here, as there is no need to re-invent the wheel. Your unique value proposition forms part of this, so it makes sense to give you the full picture.
From the research and work you’ve already done, look to answer the six questions outlined in the table below:
Key Questions Table: To inform your Brand Positioning Statement and Unique Value Proposition.
Area to consider | What to think about | Positioning |
Target customer | Who do you believe will want to use your product or service? |
|
Customer problem | What is the problem(s) they have which you are trying to solve? / or Opportunity create. |
|
Your solution | What is your solution? How does it solve the problem(s)? |
|
Unique value (selling) proposition | Why would consumers choose your solution over competitors? |
|
Competition | What are competitors doing to solve the problem(s)? |
|
Reasons to believe | What evidence do you have that your solution is better than the competitions? |
|
Once you’ve completed this, you can go on to pull it all together into a brand positioning statement, here is the format:
Standard Positioning Statement:
For ……. target customers………
Who ……. have the following problem/need…….
Our product is a ……… describe the product or solution…….
That provides………this solution to the problem…………
Unlike ……. reference the competition…….,
Our product/solution……. describe the unique selling proposition………..
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Here are some examples from a couple brands we all know:
“For individuals looking for high-quality beverages, Coca-Cola offers a wide range of the most refreshing options. Each creates a positive experience for customers when they enjoy a Coca-Cola brand drink. Unlike other beverage options, Coca-Cola products inspire happiness and make a positive difference in customers’ lives, and the brand is intensely focused on the needs of consumers and customers”
“For athletes in need of high-quality, fashionable athletic wear, Nike provides customers with top-performing sports apparel and shoes made of the highest quality materials. Its products are the most advanced in the athletic apparel industry because of Nike’s commitment to innovation and investment in the latest technologies.”
You might not always need the ‘unlike’ section in the final positioning as a direct reference to your competition, however its very useful to consider as you built to ensure you’ve included what is different and or better about your product and or service.
So, you can simply to…
Simpler Positioning Statement:
For ……. target customers………
Who ……. have the following problem/need…….
Solution ……… describe the product or solution…….
that………this solution to the problem/ statement of benefit…………
For those who like to keep things super simple and there is nothing wrong with that, you could also use the Steve Blank method, “We help (X) do (Y) by doing (Z)”
This method emphasises the benefits derived from the features in a simple sentence.
Super simple statement:
We help …target…
do …. benefit answer to pain…
by doing …unique solution providing…
e.g. We help ambitious business owners, grow their business by getting them to focus and take action on the most import things.
Checking your Brand Positioning Statement including your Unique value proposition:
So, you’ve made a first drafts, or you have an existing statement. Now is the time to check what you’ve written will serve you well.
It’s always a good idea to run in past someone else that you respect that will give you an honest and objective opinion – such as your coach or fellow member of the No Limits business community.
I’d recommend giving them the completed key questions table (featured above) along with your statement to ensure you’ve communicated the key points.
Here are some questions you can use as part of your own evaluation:
- Is it easily understood – Always best to get an alternative pair of eyes to help answer!
- Does it clearly differentiate your brand, or could anyone say it? (Your competitors!!)
- Will it help inform your marketing communications and messaging?
- Is it believable – You must believe first and then others?
- Does it speak directly to your target audience? (This is one you can research)
- Does it apply to all aspects of your brand?
- Does it sound appealing?
- Do you OWN it!
You’ll want to give yourself an affirmative yes to the above – if you can’t, you may need to refine until you can.
Conclusion
Well done, you’ve crafted a Brand Positioning Statement including your Unique Value proposition that captures your special way of delighting your customers (or this has promoted you to invest in help to get this right for your business).
A lovely statement however will not help you generate more profits unless you bring it to life within your business.
N.B. A positioning statement is more for internal reference – don’t confuse it with your company mission statement or a product tag line. We’ll ensure the difference is clear to you in part three of this article.
Action
Complete and refine your positioning statement.
Proceed to part three of this article which will help you bring your positioning and unique value proposition to life within your business. To be clear, when I say bring to life, I mean used to generate profit!
Please share your comments & questions.
By James Gentle
Join the NoLimits Business Community
Are you a business owner looking to take your business to the next level? Join our innovative community of like-minded professionals and gain access to a wealth of valuable resources, including a community portal to chat with other business owners, ebooks, business development software, and growth events that will transform the way you do business. Best of all, these resources are completely free and will be available to you forever.
But the benefits of joining our NoLimits business community don’t stop there. By becoming part of our community, you’ll have the opportunity to connect with other business owners, share insights and ideas, and build valuable relationships that will help your business thrive. Don’t miss out on this amazing opportunity to supercharge your business and join us today!