Discovering a unique selling proposition (USP) is essential for a business to differentiate itself from competitors and attract customers. Basically, it is “why should I be buying your product or service instead of one of your competitors”?
There is one thing that your USP should avoid. Being the business with the lowest price. The problem with being the lowest price is that someone will always make their price even lower. And then a third someone will make their price even lower yet. So, now it is back to you. Are you going to lower your prices again? Eventually, all of you are going to be out of business.
Now, don’t get me wrong. The “lowest price” USP has been used successfully. Look at Walmart. For many years, they guaranteed lowest price with their price matching policy. You could bring in any other supermarket’s advertising flyer and Walmart would match their price. They were trying to reinforce their USP of being the lowest price. But, they phased that policy out. They still have signage in their stores declaring “everyday low price” but they are no longer aggressively matching other stores pricing.
That’s because USPs are fluid. They change over time as your business changes and the marketplace changes. If you are the only tire store in town, your USP will change when a new tire store opens. Now you have a competitor.
Whenever you have competition – and almost all businesses do – a good thing to focus on is what your competitor’s USP is. Are they targeting a niche market? Senior citizens? Millenials? Wealthy? Frugal? Is their product line superior to yours? Or lesser? Is their service better than yours? No? Well, make sure to incorporate your service superiority through your USP.
Here are steps to help a small business identify its USP:
- Know Your Target Audience: Understand your ideal customers. What are their needs, problems, and desires? Conduct market research to gain insights into your target audience’s preferences, demographics, and behaviors. This information will help you tailor your USP to address their specific needs.
- Analyze Your Competitors: Research your competitors to identify gaps in the market and assess their strengths and weaknesses. Determine what sets your business apart from the competition and where you can offer a unique value proposition.
- Identify Your Unique Strengths: Examine your business’s strengths, capabilities, and resources. What do you do exceptionally well? What unique skills or expertise do you possess? These strengths can become key components of your USP.
- Define Your Brand Identity: Clarify your brand’s mission, values, and personality. Consider how you want your business to be perceived by your target audience. Your USP should align with and reinforce your brand identity.
- Solve a Specific Problem: A powerful USP often revolves around solving a specific problem for your customers. Identify a pain point in your target market and position your business as the solution.
- Test Your USP: Before fully committing to a USP, test it with a focus group or a small segment of your target audience. Gather feedback and refine your USP based on their responses.
- Focus on Benefits, Not Just Features: Your USP should communicate the benefits of your product or service rather than just its features. Explain how your offering improves the lives of your customers, making it more compelling. For example, your umbrella may have “UV blocking nylon” and “tungsten reinforced ribbing” but the customer cares more about your umbrella “blocking the sun’s harmful rays” and “keeps you dry even in heavy winds”.
- Make It Memorable: A good USP is easy to remember. It can be a catchy slogan, a unique product feature, or a distinct way of delivering your service. It should leave a lasting impression on potential customers.
- Keep It Simple: Avoid making your USP too complex or vague. It should be straightforward and easy for customers to understand. Aim for clarity and brevity.
- Consistency: Once you’ve established your USP, ensure that it permeates all aspects of your business, from your marketing materials to your customer service. Consistency helps reinforce your unique positioning.
- Monitor and Adapt: The business landscape is dynamic, so regularly monitor your market and competition. Be ready to adapt and refine your USP as necessary to stay relevant and competitive.
- Tell a Compelling Story: A well-crafted brand story can reinforce your USP and connect with your audience emotionally. Use storytelling to explain why your business is unique and why it matters. We will expand on story telling in a future blog post.
Remember that discovering and maintaining your USP is an ongoing process. It’s important to be flexible and willing to evolve as your business and the market changes. Your USP can be a powerful tool for attracting and retaining customers, so invest the time and effort needed to get it right.
Godaddy has developed a worksheet in pdf format that you can download or print out to help you develop your business USP. You can find it here: https://www.godaddy.com/garage/wp-content/uploads/2016/11/godaddy-developing-unique-selling-proposition-worksheet.pdf
Extra Income News admin Richard Moore has been involved in different businesses for over 60 years. Although mostly involved in the printing and publishing industry, he became involved in the network marketing and mail order industries through his friendship with Ted Estey who was the original publisher of Emerald Coast News. This newspaper's content helped many people in MLM and mail order build their businesses. Emerald Coast News became Extra Income News around 2000.