Unique Value Proposition: The Key to Entrepreneurial Success

Let me guess. 

You own a business or you’re thinking of establishing one. That’s why you are reading this. I guessed right, didn’t I?

Okay, let’s talk about Unique Value Proposition (UVP).

For any business you might be running right now or thinking of starting, there is a very high chance that someone is already doing the same business.

For some, this fact alone cripples the thought of starting a new business. Some others struggle to get past the break-even point and start making profit in their business because of this.

So how do you stand out from the crowd in your business? How do you stand unique and attract the right customers?

This is the question you should be asking when you’re coming into the market and that’s what your UVP is all about.

What is a Unique Value Proposition (UVP)?

UVP stands for Unique Value Proposition. It’s like a special sauce that makes you different from others. It’s what sets you apart and makes people choose you over others.

Let me give you an example. Imagine you’re a guy who wants to ask a girl out on a date.

You’re not the only one who likes her, there are other guys who want to date her too. So, how do you stand out?

You think about what makes you special. Maybe you’re a great cook, or you’re really funny, or you’re an amazing listener.

Whatever it is, that’s your UVP. That’s what makes you different from the other guys.

So, when you ask her out, you find a way to project your UVP. Perhaps you ask her to come visit in a gathering of friends where you will do the cooking.

Or you take her out and engage her in conversations that make her laugh like she’s not laughed in a very long time.

You can do the listening part too if that’s your UVP. That’s what makes her choose you over the others.

It’s the same with business. Your UVP is what makes your product or service stand out.

It solves a problem or meets a need in a way that no one else can. And when you highlight that UVP, you attract customers who are looking for exactly what you offer.

So, UVP (Unique Value Proposition) in a nutshell, is a statement used in business that clearly tells your potential customers how your products or services will address their needs and solve their problems, and what makes your offer unique, or different from the competition.

Examples of Successful UVPs (Unique Value Propositions) in Various Industries

Let’s take a look at some top successful UVPs in various industries, especially in Nigeria.

Jumia

Jumia, Nigeria’s leading e-commerce platform, offers a UVP of fast and reliable delivery which makes online shopping convenient and hassle-free.

They have this on their website:

“Jumia Nigeria – Nigeria’s No. 1 Shopping Destination. Shop for Everything You Need on Jumia Nigeria” 

“Experience Fast Delivery and Online Shopping Convenience”

(Source: Jumia Nigeria website)

Jumia sells a wide range of products and they have a user-friendly website which has made them become the go-to online shopping destination for Nigerians.

Personally, I love to shop on Jumia because of the flexibility of their payment options and their return policy. 

This makes them stand out for customers like me and that’s their Unique Value Proposition.

Food Delivery: Jollofbox

Jollofbox is a UK-based food delivery service, providing authentic, traditional West African cuisine, particularly Nigerian and Ghanaian dishes, to customers in the UK.

They emphasize the freshness, quality, and love that goes into preparing each meal, which resonates with their target audience.

Highlighting their unique selling points, such as authentic West African flavors, freshly prepared meals, and convenient delivery, differentiates them from other food delivery services in the UK.

Bolt

Bolt, a ride-hailing service, offers a UVP of affordable and safe rides, making transportation more accessible and convenient. 

On their website, they have this:

“Request in seconds, ride in minutes.

Bolt is the safe, reliable ride-hailing service available at the tap of a button. Order a ride and get picked up by a top-rated driver in more than 500 cities worldwide.”

(Source: Bolt Lagos)

Bolt has a user-friendly app and a wide range of vehicles and they have become a popular choice for commuters in Nigeria.

GTBank

GTBank, one of Nigeria’s leading banks, offers a UVP of innovative and customer-centric banking services. With a focus on technology and customer experience.

They have this on their website:

“Delivering the Utmost in Customer Service.

We are synonymous with innovation, building excellence, superior financial performance and creating role models for society.”

What do these thriving businesses have in common? They all identify and address a specific pain point or need in their market.

They have pinpointed and amplified their Unique Value Proposition (UVP), and this has managed to help them stand out from the crowd, attract a loyal customer base, and drive long-term success.

Importance of Unique Value Proposition for Entrepreneurial Success

When you’re trying to attract customers, you’re not just competing with other businesses in your industry.

You’re competing with every other business that’s vying for their attention.

So why is your Unique Value Proposition important as an entrepreneur?

Differentiating Yourself from Competitors

Your UVP answers the crucial question: “Why should customers choose you over others?”

By clearly articulating what makes your offering unique, you create a distinct identity that resonates with your target audience.

This differentiation is vital in industries where products or services may seem similar at first glance.

Let’s break it down a bit. Imagine you’re starting a business selling akara in Lagos. You know there are loads of akara sellers out there, right?

So, how do you make sure people choose your akara over the others?

Now we are talking about your Unique Value Proposition (UVP).

Let’s say your grandma taught you a secret recipe that makes your akara extra fluffy and tasty.

That’s part of your UVP! Maybe you also use only organic beans and fry in palm oil from your village.

Now you’re not just another akara seller – you’re the one with the fluffiest, tastiest, healthiest akara in town.

When you tell people about this, they get curious. They want to try your special akara. That’s how your UVP helps you stand out and attract customers.

Attracting and Retaining Customers

It does not end with just getting new customers. When people taste your akara and love it, they’ll keep coming back.

They’ll tell their friends, “You have to try this akara! It’s so fluffy and delicious!” That’s how you keep customers and grow your business.

A compelling UVP acts as a powerful magnet for your ideal customers.

When customers understand exactly how you can solve their problems or improve their lives, they’re more likely to choose your business.

Moreover, a strong UVP builds customer loyalty. If you consistently deliver on your unique promise, you create a positive experience that encourages repeat business and word-of-mouth referrals.

This customer retention is often more cost-effective than constantly acquiring new clients.

Guided business decisions

Your UVP serves as a compass for product development, marketing strategies, and expansion plans. It helps you make smart business decisions.

If you’re known for healthy, tasty akara, you wouldn’t suddenly start using cheap, low-quality ingredients to save money. That would go against what makes you special.

Instead, you would be on the lookout for factors to improve your product and service.

You would be thinking of how to expand your akara outlet while maintaining the same product and service quality.

These decisions stem out of the fact that you have a Unique Value Proposition to uphold.

Impacting Business Growth and Revenue

When you have a unique product or service, you can charge a bit more. People are willing to pay extra for something special.

A strong UVP justifies higher prices, as customers perceive greater value in your offering. So your UVP can help you make more money too.

Attract investors

As a growing business, you most likely need the support of investors.

A well-defined Unique Value Proposition demonstrates your business’s potential and makes it more appealing to investors and partners.

Nobody wants to invest in a business that doesn’t promise a return in their investment.

With a UVP, investors understand the strategy that you have in place to make your business stand out. 

That gives them confidence to invest. And that means better chances for your business growth.

Your UVP directly influences your business’s bottom line which provides a solid foundation for sustainable growth and increased revenue.

How to Identify and Craft Your Unique Value Proposition

Let’s break down how you can identify and craft your UVP in simple steps.

Identifying Your Skills and Passions

First, let’s do a quick self-check. Grab a pen and paper, let’s answer these questions:

1. What are you really good at naturally?

2. What do you enjoy doing when you have some free time?

3. What problems do you love solving?

4. What do people often ask for your help with?

For example, maybe you’re great at fixing phones, or you have a knack for explaining complex things simply. Write it all down.

These self assessment exercises will help you identify your personal strengths and passions.

Now, look at your list and think about how these skills could help people. Are there businesses or individuals who need what you’re good at?

This is how you connect your strengths to what the market needs.

Let’s say you’re amazing at organizing things. There might be busy professionals who need help decluttering their homes or offices.

Boom! You’ve found a potential market for your skills.

Crafting Your UVP

Now that you know your strengths and who might need them, let’s craft your UVP. 

Ask yourself:

“How can I solve problems with my skills and passion?”

“What angle can I introduce when solving this problem that others are not using?”

A strong UVP has three key parts:

1. It solves a problem

2. It’s specific about how it solves that problem

3. It clearly states the benefit

Here’s a simple formula to put it all together:

[Problem] + [Solution] + [Benefit]

Let’s use our organizing example:

For busy professionals in Lagos, time is precious and traffic is a major headache. So, what if we offered something that saves them even more time and hassle? Here’s an idea:

We could offer a “Declutter and Donate” service. Here’s how it would work:

1. We declutter the client’s space as usual.

2. But then, instead of leaving the client with bags of stuff to dispose of, we handle that part too.

3. We sort items that can be donated, and we actually take them to local charities or schools that need them.

4. For items that can’t be donated, we responsibly dispose of them.

This extra service matters to our ideal Lagos customer because:

1. It saves them extra time and effort. They don’t have to deal with the leftover items.

2. It eases their conscience. They’re not just throwing things away, but helping others in their community.

3. It solves the problem of not knowing where to donate items in Lagos.

4. It helps them avoid Lagos traffic by not having to make extra trips to donation centers.

So, our UVP could be:

“For busy Lagos professionals, we offer a complete ‘Declutter and Donate’ service. We organize your space in one day and then handle donating or disposing of unwanted items. You get a tidy home and peace of mind, without the extra hassle – all while giving back to your community.”

This approach shows we understand the specific needs and challenges of our Lagos customers and we are offering a solution that goes beyond just organizing. 

Isn’t that amazing?

So you see how it works? We’ve identified the problem (clutter), the solution (organizing services), and the benefit (saving time, reducing stress, and doing benevolence in the process).

Remember, your UVP should be clear, specific, and focused on your customer’s needs. It’s not just about what you do, but how it helps your customers.

Take your time with this process. It might take a few tries to get it right, and that’s okay.

Your UVP might even change as your business grows and evolves. The important thing is to start somewhere and keep refining it.

Conclusion 

Let’s wrap this up here.

Finding your special thing – your Unique Value Proposition as an entrepreneur is of super advantage to you when you’re starting a business.

It makes you hit the market with a difference and draw the attention of your ideal customers. 

Think about what you’re really good at and how it can help people. Then craft your message in a way that’s easy to understand.

This will set you up for success in your business journey.