Unique Value Proposition for consultancies.
I define a Unique Value Proposition (UVP) as the reason why clients should select your firm. If you can’t answer this question, you’re obviously in trouble. As Almquist et al. (2018) showed in their Harvard Business Review article this is very rarely just the combination of your services and prices, but also includes:
- Inspirational value (the ethics, values and vision of the firm)
- Individual client value (what are you bringing to the person e.g. network, growth, CV material)
- Ease of doing business with the client (access to seniors, building strong relationships)
The UVP of your firm is more than the sum of the benefits of your individual services but reflects and drives what your firm does (brilliantly) and how it does it (so well). In short, it is the value that you deliver.
In truth, a value proposition is rarely unique in itself, but when combined with your niche should be relatively rare. My own value proposition is
To help small consultancies grow faster and better through honest, research-based advice which maximises margins and decreases risk.
I do this in a variety of ways and have four key services, but this is the guidine principle that informs them all. In terms of uniqueness, there are many firms that offer advice to larger firms (or to everyone!), there are some independents that offer advice based on minimal evidence, and there are some firms that offer advice that isn’t independent (they have a vested interest in specific choices).
In short, UVP asks:
- What do you do brilliantly and (relatively) uniquely for your clients?
- How do you do it differently from others?
- What benefits will the client gain?
Your UVP is not just a beacon for your clients, but must also reflect and guide your mission/vision, culture, leadership style, marketing and competences. If it does not, then it is likely the UVP will eventually be little more than a marketing slogan.
Finally, a UVP limits your market. It means that you are no longer vanilla. You are cookie-dough gelato. Some people won’t like it. This is a good thing. You are not competing with everyone. You are more exclusive and expensive. You know who your customers and potential employees are and understand the value you bring them. For this reason, as we shall see, it is important to know what you won’t do, who you won’t work with and who you won’t employ (no matter how ‘good’ they are).
The workshop guidance provided in this PowerPoint is one version I use with clients. Feel free to amend,
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