August 24, 2016
With the amount of highly competitive industries making up the business world, it can be difficult for many businesses to set themselves apart from their competition and gain solid footing in their market. While working hard to create an awesome business plan, increase your sales, and have online marketing success can make your business flourish, none of these things really attack the problem of becoming a unique and valuable company when you’re in a competitive industry. But for markets like cosmetics and beer, where approximately $10,000 and $58,000 are spent every 30 seconds, there has to be a way for smaller businesses to get a greater share of the market.
One way to make this endeavor easier is to understand your company’s unique value proposition. Once you’re able to fully grasp what it is about you, your company, and your brand that makes you different and better than your competitors, you will find it a much easier task to situate yourself within your market. But just how are you supposed to do that? To help businesses still struggling with solidifying this concept, here are three tips for pinpointing your company’s unique value proposition.
1: Find Where Your Value Lies
Before you can adequately come up with a value proposition for your company, you have to understand where your clients or customers can find the value in your company. This isn’t always an easy task to take on from the inside. According to Joanna Lord, a contributor to Entrepreneur.com, a company can have unique value in having the best features, best customer service, best partners, best design and more.
Lord’s advice for finding this value within your own company is to look at “the why.” Why would someone choose to work with you over your competitor? By identifying this, you’ll be able to have a better handle on what motivates your customers to work with you and how you can mold that motivation into a unique value proposition.
2: Understand Market Segmentation
If you’re still having a hard time with pinpointing why someone should choose you over your competitors, it may help to think about the different segmentations of people within your target market. Not every potential consumer within your market will value the same thing. The point is to find what you can be the absolute best at and then tailor your value proposition to people who value that trait.
Peter Sandeen, a contributor to KISSmetrics.com, shares that if you’re able to be the best in your industry at even one small thing, you’re going to be the most valuable option for people who view that aspect as the most important. Even if that segmentation is only a small portion of your market, you will then have the ability to beat out all your competitors in that area. Try to find the exact persona that would find your business most valuable, why they would choose you over others, and create your unique value proposition based on that information.
3: Use Positioning Statements
Once you’ve discovered what your most valuable characteristic is to a specific segment within your market, it’s time to create your value proposition. This part can be very tricky for businesses because the statement has to be short and sweet in order to clearly convey your message.
Michael Skok, a contributor to Forbes.com, suggests that businesses think about their value propositions statements that position them in their market by merely explaining the “benefit you provide for who and how you do it uniquely well.” That’s it. This statement should be compelling, yet uncomplicated. It should give just enough information to convince someone who values what you offer to work with you.
By pinpointing your company’s unique value proposition, you can see exactly where you fit within your market in order to better exploit your position and get a greater slice of that market share. Use the tips mentioned above to craft your own value proposition and start making a bigger splash in your industry.
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