Defining Your Unique Value Proposition
Last week we spoke about the importance of knowing your unique value proposition and communicating it in your sales story because it helps drive your ideal customer’s buying decision. But how do you know why people buy from you, and more importantly, how do you position yourself against your competition?
Asking past and current clients why they selected you compared to another service provider is an important place to start. If you haven’t done this work before, it’s worth taking the time to do it properly.
Unique value propositions are often more a personal trait than an actual differentiation in product or service. The goal of asking a larger group of past customers why they selected you allows you to identify a consistent theme or reason.
Who and What Should You Ask?
We all know those clients we love working with who end up feeling more like friends. These are your ideal clients, the ones you went into business to help. Create a list of as many names as possible but at minimum 10 people (you probably don’t need more than 20.)
Take your list of 10-20 ideal clients and via email, ask them if they can participate in a quick questionnaire to help you create more customized sales messaging that focuses on how you’re different than your competitors. The goal of the questionnaire is to understand why they decided to buy from you, and if they continue to use your product or service, why they've become a repeat customer.
Questions to ask include:
How has your product or service helped them?
What are the top 3 reasons they selected you over your competitors?
If they were to recommend you to a friend or colleague, why would they recommend you?
If you reach out to 15 past clients and eight mentions good communication as a key reason they buy from you, that indicates this is an area where you excel, and presumably your competitors lack, at least comparatively.
Once you’ve identified the top three traits, follow up with your closest and most supportive clients asking for further details on the top characteristics. Make sure you thoroughly understand what respondents meant so you communicate it clearly in your sales and marketing materials.
The Benefit of Testimonials
Never forget the importance of past client testimonials for your business. When we're considering a purchase, we want to hear firsthand feedback from past customers. We want assurance that our money is being well-spent. And every time you finish working with a client, it’s an opportunity to reach out and ask for a client testimonial. Every client testimonial should, at minimum, ask three essential questions:
What problem were you experiencing that prompted you to hire [your company]?
What was it like to work with [your company]?
How have things/your problem improved since hiring [your company]?
In addition to testimonials being a great way to encourage potential clients to buy from you, it also provides valuable insight into WHY people buy from you. When clients offer testimonials, it will reinforce your current unique value proposition as indicated by their answer to question 2. Or perhaps, it will allow you to identify a new reason to nurture and add to your growing list of unique differentiators. Unique value propositions can change as your services or clients’ needs evolve.
For example, in periods when the stock market is flourishing, people want a financial advisor who’s going to make them as much money as possible. But when news breaks of thousands of investors losing their life savings because of a corrupt advisor or being the victim of a Ponzi scheme, suddenly a trustworthy advisor becomes a paramount quality when selecting with whom to invest.
It’s important to understand that your unique value proposition may vary based on the audience you’re trying to reach. When the financial advisor sends out materials or responds to a potential client request, asking a few preliminary questions upfront will reveal their biggest investment goals. He can use the unique value proposition that is most relevant.
Include your unique value propositions in all your sales and marketing materials, your brand script, website copy, and anything else you use to engage with your ideal customer.
Never miss an opportunity to tell them how you solve their problems (because this is what THEY care about) and how you do it better than your competition (your UVP).
