Unique Value Propositions (UVP's)- why are they so hard?
/A Unique Value Prop (UVP) is defined as “a clear statement that describes the benefit of your offer, how you solve your customer's needs and what distinguishes you from the competition.” Simple right? Wrong… I can’t even tell you how many times I’ve had to define and re-define what a UVP is. So, this is how I’ve helped companies answer “what is our UVP?”
Here’s an analogy that might help frame what a UVP is for a company. Think about a person, what is their Twitter headline? What’s great about a Twitter headline is that it has to be short, probably should include relevant keywords that explain them the best and ideally communicates either their experience or values.
Since this can be hard, especially for companies that don’t have a mission statement or a strong purpose, here are some of the things I’ve learned that might help you get there faster.
You have to know yourself well: I just turned 40, and I feel like I finally got my personal UVP dialed. I spent some time this summer actually taking a bunch of personality tests and reflecting back on my previous experiences, doing some personal evaluations of what I really liked about different roles, what I didn’t. I put all of that on paper and it’s clear to me what my passion is, what I am good at and where those two intersect. There is something to be said for experience, trying out a job or life or whatever and realizing it doesn’t quite fit you and being honest about who you are and what’s important to you. If companies don’t have mission statements I ask their executive teams to tell me their origin story. I ask if they have values that they ask employees to follow. I ask what they're most proud of as a company. Asking questions like this uncovers what’s important to the organization, what’s valued, and essentially, who they are.
Know your customers well: Once you are clear about who your company is, you have to know who your customer is. Do you serve a specific sector, or were you built to help a specific segment of a market? Is there some pain that this market faces that no one else does? Is there a specific kind of pain that you address to roles across many industries. Knowing who you are a 100% fit with is a great way to clearly see who VALUE’S you.
Know your market: Just like you know yourself and your customer, you have to know where you sit in the market. This means you have to know your competitors and complementary products, partners and any industry trends/changes that affect your customers. Start with a list of competitive differentiators, recent industry trends, products that you buyers often purchase (share of wallet) in addition to your product or service.
They don’t call it a UVP for no reason: Unique comes in many forms, you gotta pick ONE! This is as hard as me trying to pick the one trait I love most about my daughter. I mean, come on?!?! Who can do that? Well, guess what, it’s time to get honest and find a little space from your company. So, start with a LONG list taking into account the unique audience, the unique market, the time, specific features or values or technical advantages that you have that no one else does. Then walk away. Go for a run, walk, complete a lego project, just something else. Then come back and look at the list critically. If all else fails and you still can’t get it down to 1 thing, ask your customers. Ask them why they purchased you, or why they’re testing you out, or why you’re making their lives easier. Often customers are great unique value assessors.
General observations that are worth noting:
Don’t rush it: Sometimes, getting to a UVP can take months, especially for startups. If this is your baby, and you can’t compare your baby to other babies, it’s hard to not think every little thing about your baby is special. But, then you see how she can’t speak as clearly or draw as well as other kids in her class, and you realize that those to things are not her UVP. Now, she might be the goofiest, or easiest to get along with, but again- if you can’t compare it to anyone else, it’s hard to be critical about a UVP. So, for startups that have an idea for a product but no one actually using it, this can take time.
Changing a UVP can mean a couple of things: If you are changing your UVP every 2-3 months, then you just don’t have it dialed. If you are making drastic changes once a year, you are in startup mode and you are actually pivoting your business. My suggestion for early-stage companies is to keep re-visiting your UVP at least semi-annually. It should still fit unless your customer base has changed dramatically, or the market is experiencing some significant change or you haven’t been able to figure out what is important to you. In the real-world, a UVP shouldn’t change within the first 2 years of creation.
Getting to a UVP is hard, don’t beat yourself up if it takes time. Keep talking, be clear about your goals, and your values and what feels right and more importantly what doesn’t. Keep words up on a whiteboard and sit with them for a while. When you get there, you will know. It will feel right, every time you write it, every time you see it. If it doesn’t, you just aren’t there yet. Keep going. This is part of the process.
