I've been in business since I was five, working in my grandfather's store. Since then over the years, I noticed one key factor set thriving businesses apart: a compelling unique value proposition (UVP) or an EDGE.
For example, I had a client selling fishing tackle and bait. Anglers knew his store was the place for their gear - that niche gave him an edge that other shops in the same shopping centre missed.
So, what makes a value proposition? Here's how I break it down but first let me say that it clearly communicates the specific value in your customer's image that your business has; it’s your special sauce.
For Small Retailers, A Strong UVP is a Secret Weapon
Without a stand-out value proposition, independent shops blend into the background—just another store.
An effective UVP grabs attention, builds loyalty, and gives customers a reason to choose you. It takes you from forgettable to unforgettable.
For example, a local pet supply store touted its extensive dog food range. Since people who buy dog food are used to going to a pet shop to get it, they have less hesitation about going into this local pet shop.
This actually is one of the reasons, I think the advise of a newsagency calling themselves a gift shop is wrong. A newsagency still in many shoppers has an appeal. It does project trust.
Put Yourself in Your Customers’ Shoes
When crafting a UVP, think like your ideal customers. Consider the types of stores ingrained in their routine.
Most people are accustomed to regular visits to newsagencies for papers and convenience items. The familiarity makes them more likely to pop into a new newsagency than other shops.
Understand your audience’s habits, and you can better position your niche.
How to Craft Your Retail UVP: 5 Key Steps
Creating a value proposition that works takes effort. In my experience, you'll need to:
1. Analyze competitors: Study their offerings closely.
2. Assess your strengths: Take stock of your genuine advantages; selection, service, location, expertise, etc. That highlights your “wow” factor.
3. Understand your customers: Dig into their values, needs and pain points.
4. Distill your message: Boil your learnings into a crisp, unique statement.
5. Test and refine: Try out messaging with objective parties. Adjust based on feedback.
Crafting an effective UVP requires work but pays off tenfold. For retail survival, define your edge and shout it loudly. It can skyrocket you from average to exceptional in customers’ eyes.
I did like this video on this subject.
