Developing your differentiated value proposition

In October, I attended the Smart Buildings Show 2022 in London’s ExCel. The event featured interesting and informative seminars as well as a wide array of exhibitors, including well-known brands and emerging new technology businesses. In addition to showcasing some of the most exciting technological developments within the sector, the show served to highlight the growth that the smart buildings market has experienced in recent years. This rapid expansion means that it is now crucial for each brand to find a way to stand out in an increasingly crowded marketplace and the key to this is the development of a strong differentiated value proposition (DVP).
 
 
What is a differentiated value proposition
 
Value propositions have long been an important concept in marketing. Often taking the form of a snappy statement, a value proposition conveys the benefits and solutions that your business provides to its customers.
 
Differentiated value propositions (DVP) highlight what it is that makes your business a more attractive option than your competitors. What you do, that’s better than anyone else!
 
Your technology may be cutting-edge and your customer service may be exemplary, however, if your business fails to communicate why potential customers should choose you over another brand, you may find that your growth falters.
 
As such, a well-defined DVP is essential, particularly within sectors that are experiencing significant growth. In the case of smart buildings, a strong differentiated value proposition could help your business cut through the noise of an increasingly busy marketplace and stand out, even among well-known brands.
 
 
How to develop your differentiated value proposition

1. Get to know your customer  

An in-depth knowledge of your customer is a crucial component of every marketing strategy and will enable you to develop a DVP that speaks directly to your target market. Understanding your customers’ specific pain points means that you can address them within your DVP and ensure that your brand resonates with their individual needs.
 
What is your customer most concerned about? What is it that they’re looking for? By drilling down into your customers’ problems, you can create a statement that highlights exactly how you can solve them, and that differentiates you from the rest of the sector.

2. Research the competition

If your business is going to stand out from its competitors, then you need to know what you’re up against. From technological developments and pricing plans to hardware warrantees, understanding what other businesses are offering will help you to identify how your company is unique, or how you can differentiate your brand from the existing offerings.
 
A competitive analysis of other businesses within your space may also help you to uncover opportunities that will enable your business to grow and evolve. 


3. Build your statement  

As well as highlighting the value your business offers and the reasons to choose it over a competitor, your DVP must be authentic and reflect the ethos and capabilities of your brand.
 
A business’s DVP may be one specific aspect that makes the brand stand out from the crowd, or it could be the sum of many parts. For example, your business’s differentiated value may lie in the fact that you offer both an extended guarantee on hardware and 24-hour support. While these two services may be offered individually by other suppliers, when they are combined they create a powerful DVP: “unrivalled customer care”. 

4. Demonstrate your points of difference  

For your proposition to be impactful, you must be able to demonstrate it in a real-world setting. For example, if your DVP focuses on the user-friendliness of the interface, you should be able to support your statement with evidence. This may involve collating case studies and sharing them with potential customers, creating video content that showcases your amazing user experience or including customer reviews on your website.

5. Bring in the experts  

Once you have a strong differentiated value proposition in place, it’s essential that you communicate it clearly to your target audience. Your DVP will form a central component of your marketing strategy and be present in everything from your customer newsletters to your investment applications.
 
 
Our communications experts would be delighted to support you with developing and sharing your business’s DVP. Contact our team today to learn more about how 3-Eight Communications could help you to give your brand a boost in a busy marketplace.