Discover Your Nugget
How to find your Unique Value Proposition
and what to do with it
Fran Scarlett
Regional Director, SBTDC
Definition
nug·get
–noun
1. a lump of something, as of precious metal.
2. a lump of native gold.
3. anything of great value, significance, or the like:
nuggets of wisdom.
Unique Value Proposition
Definition: A value proposition is the combination of
products and services that provide value for a specific customer
segment.
It describes the way a firm differentiates itself from its
competitors and is the reason why customers buy from a certain
firm and not from another." It should answer the question:
“Why should I choose to buy this product or service, and why
now?”
A value proposition is an analysis and quantified review of the
benefits, costs and value that an organization can deliver to
customers and other constituent groups within and outside of
the organization.
Business Model Architecture
value proposition
infrastructure
market
financial
4
Institute for Innovation, copyrighted material, 2010
Business Model Architecture
Value Proposition
(nugget)
Infrastructure
Market
core capabilities
key activities
strategic partners
target customers
customer relationships
distribution channels
Financial
cost efficiencies
revenue sources
5
Institute for Innovation, copyrighted material, 2010
Value Proposition Template
http://www.goldsbrough.biz/
http://www.goldsbrough.biz/valueproposition
6
First Draft
Value Proposition: UNCW Centro Hispano
First Sentence - Value of the Offering
Target Customer
For…
UNCW students and overall campus community
Statement of the Need or Opportunity
who…
Need guidance and support to be successful +
campus needs more awareness of Hispanic culture
and heritage.
Product/Service Category
our (Product/Service) name is…
Academic support and cultural programming
Statement of benefit
that…
Students will achieve academically + campus community will
understand and appreciate Hispanic culture.
Second Sentence - Positioning the Value
Primary Competitive Alternative
Unlike…
Centro Latino
Statement of Primary Differentiator
our product...
College-student centered (academic mission)
Proof that Benefits can be delivered
because…
Increased Hispanic enrollment & student success (GPAs)
Refining Your UVP
Questions to hone Unique Value Proposition
• If your revenue(funding) was cut by 30%, what aspects of your
organization must you preserve?
• Who do you compete with for customers(clients)?
• What do you offer that your customer(client) cannot get
elsewhere?
• You have an opportunity to access additional funds, but the
grant, loan, equity requires you to pick the operation where
you know you can add the greatest value. What would you
pick?
Second Draft
Value Proposition
First Sentence - Value of the Offering
Target Customer
For…
UNCW Hispanic students
Statement of the Need or Opportunity
who…
Need guidance and support to be successful both
academically and as leaders.
Product/Service Category
our (Product/Service) name is…
Academic support and cultural programming.
Statement of benefit
that…
Our students will achieve.
Second Sentence - Positioning the Value
Primary Competitive Alternative
Unlike…
Sister institutions of higher education in NC
Statement of Primary Differentiator
our product...
We’ve created a family that addresses the needs of
our students.
Proof that Benefits can be delivered
because…
Increased Hispanic student enrollment and student success in
rising G.P.A.s
The “So-What” Test
•Try your value proposition out on colleagues, employees –
and most importantly, existing and potential customers.
•If the response to your value proposition from a prospective
buyer is “So What?”, you know that it’s not strong enough.
•Did it describe tangible or measurable benefits that are truly
of concern to that consumer?
Business Model Architecture
Value Proposition
(nugget)
Infrastructure
core capabilities
key activities
strategic partners
Market
target customers
customer relationships
distribution channels
Financial*
revenue sources
cost efficiencies
11
Institute for Innovation, copyrighted material, 2010
Revenue
• By establishing your UVP, you can focus your
development efforts and time.
– Focus on grants that really match your value
proposition
– Differentiate your organization in the grant-writing
process
Funding sources are looking to ensure organizational
alignment with their giving philosophy.
Business Model Architecture
Value Proposition
(nugget)
Infrastructure
core capabilities
key activities
strategic partners
Market*
target customers
customer relationships
distribution channels
Financial
cost efficiencies
revenue sources
13
Institute for Innovation, copyrighted material, 2010
Marketing 101
 “Market” = group of similar customers.
 “Market Share” = percentage of available customers
buying from you, or using your services, instead of
your competitors.
 The objective:
◦ Attract and retain a growing base of satisfied
customers.
Marketing 101
 Customers must be the focus of the business.
 Marketing is the means of communicating
with customers.
 Getting the right message to the right people
at the right time.
“Profit” or “not-for-profit”, the approach is the
same.
What Marketing Can Do
– 1. Reach more viable prospects with your message.*
Prompt prospects to contact you. (More selling or
service delivery opportunities.)
– 2. “Close” a higher percentage of the selling
opportunities.
– 3. Raise the value of the average sale.
– 4. Increase repeat and referral business.*
Reaching Viable Prospects
– Determine your target market profile. [The right people]
• Do you have a distinct, unique market to target?
• Determine their characteristics, especially those that are unique.
• What motivates them?
– Determine the proper message to deliver. [The right message: Unique Value
Proposition]
•
•
•
•
How much “education” will be required?
What information do prospective customers need in your messages?
What misconceptions need to be eliminated or offset?
How can you hit their “hot buttons” – the things that motivate them?
– Focus your message toward your target market. [The right time*]
• Be certain that the message will reach them when and where they are
receptive.
– Get your message to more prospects. [The right place*]
• Which media are most connected to your target prospective
customers?
Promotion & Advertising - Media Options
Personal Communication
Brochures & Catalogs
Television
Centers of Influence
Vehicles
Giveaways
Audios / Videos
Banners
Newspapers
POS / Packaging
Newsletters
Networking
Word of Mouth
Radio
Yellow Pages
Billboards
Telemarketing
Door-hangers
Direct Mail & E-mail
Signage
Industry Publications
Website
Blogs & Facebook
Twitter
Increase the Percentage of Repeat and
Referral Business
– Repeat business is the most cost-efficient.
• Fulfill promises (Unique Value Proposition) to customers and they
will come back.
• Cost to acquire repeat business is zero (or nearly so).
• Stay in front of customers via e-newsletters, etc., to remind
them about you.
• Social networking with customers.
– Referral business is the second most cost-efficient.
• Fulfill promises to customers and they will tell others.
• Be “pro-active” seeking referrals from customers.
The Sales and Marketing Funnel
Market Potential: Sources of Information
www.census.gov
www.factfinder.census.gov
www.infods.com/freedata
http://df.clients.compcenter.com/catenate-links/ags
(psychographics by zip)
www.zapdata.com (info about companies)
Thomas Register, Yellow Pages (info about businesses)
www.sbtdc.org/pdf/startup.pdf
(business start-up resource guide)
Contact Info
Contact Info: Fran Scarlett
SBTDC
www.sbtdc.org/uncw
910 962-4248
Questions??