What is a UVP?
UVP stands for “Unique Value Proposition” and is the unique value that your company brings to the table. When customers compare options, your UVP will make it more obvious to the right customers that your company is the right fit.
A company slogan, a discount, or a warranty offer isn’t a unique value proposition. Since these things are easy to replicate, you can easily lose your advantage.
But a company that has its marketing, sales, and operations structured around a specific value proposition to address specific homeowner needs is hard to replicate. Special offers can support the UVP, but competitors won’t be able to match your UVP just by offering the same deal.
Why it Matters
It can be hard for customers to know whether they should choose you or choose your competitors. When I ask contractors what their unique advantages are, most of them tell me “quality” and “service.” If everyone is saying that to homeowners, they won’t be able to see the real difference. It’s no wonder that homeowners often end up choosing the cheapest contractor.
With home improvement contractors becoming smarter and more competitive, I believe it’s going to become more and more important to distinguish your company with a UVP.
Developing Your Own UVP
1. Think About Customer Needs
When developing your UVP, it’s important to consider what customers' wants and needs actually are. As business owners we often prioritize things that are important to us that aren’t necessarily important to customers.
One of the best ways to understand your customers better is to simply ask. You can talk to your customers and ask what made them choose you, what options they were considering, and if they have feedback on their experience.
Another good way to see what’s important to homeowners is to read reviews of competitors - both good ones and bad ones - to see what customers mention in their feedback.
2. Know the Competition
Once you have an idea of customer needs in your area, you’ll want to know how well those needs are being supplied. As part of your research, see how well your competitors are meeting the needs of your customers.
When you find demand and supply gaps in the market - meaning, customers have a particular need that isn’t being met well - that’s your chance to stand out.
3. Understand Your Strengths
UVPs should be based on something that can’t be easily replicated. What are the unique abilities your business has, or that you personally have, that won’t be easy to copy?
Sometimes, you’ll need to work backwards and develop those unique strengths after you develop your UVP. But if you already have unique strengths that serve a particular demand better than your competitors, you may want to base your UVP on those strengths and continue from there.
4. Write it Out
Once you’ve considered market demand, your competition, and your unique strengths, it’s time to write out your UVP. This written out UVP is simply a tool to help you clearly express your UVP and develop your business around it - it’s not meant to be a standalone marketing message.
Here is a UVP template by Service Allies:
[YOUR COMPANY]
offers [SERVICE]
to [TARGET MARKET]
who want [CUSTOMER WANTS]
while [COMPETITIVE ADVANTAGE]
To see it in practice, here is Service Allies’ UVP:
Service Allies
offers lead generation
to home improvement contractors
who want high quality leads
while running ads that are not pushy or misleading.
Here are two examples that can be applied to remodeling companies:
KitchenQuick
offers kitchen refacing and refinishing
to low to middle class homeowners
who want to completely transform their kitchen
while spending less than $5,000
Carl's Custom Creations
offers kitchen remodeling
to middle to upper class homeowners
who want complete confidence in how their completed project will look
while not having to spend money on a professional design upfront.
Once your UVP is clear, your marketing, sales, and operational efforts can be built around it. If your UVP is properly developed, the advantage of choosing your company will become more and more clear for the right customers. It will also serve as a guide as you make big decisions for the future of your company.
