How do you answer this question? Why should I choose your business/product or service over any of your competitors instead of just sitting on my couch and watching TV?
To answer this question, you need solutions to problems that no one else offers, but be careful if you differentiate your business on price, because the only way to increase revenue is to reduce the price, it is difficult to increase the price if it has already been saying. market you are the low-cost provider. The simplest solution to this problem when choosing your USP is to ask your customers why they buy from you! then build your answers into your USP. A ‘Unique Selling Proposition’ or sometimes ‘Customer Buying Advantage’ is how you tell the market that you are unique.
Important factors if the USP is good!
1.You can charge higher prices…many people now understand that cheaper is not always better
2. May be relatively impervious to market fluctuations
3. The competition will not be able to compete with you under the same conditions.
4. You will stay in the minds of the market much longer than most other companies.
Your message: (More about USP) What are you saying about your product/service? Why are you better, different, unique, etc. Do you open your door and wait for someone to enter? The right message should say “this is who I am and here’s why you should do business with me”, if you can’t articulate a message that will attract customers, you have a problem.
Some famous examples:
“Fresh, hot pizza delivered in 30 minutes or your money back” Domino’s (doesn’t even claim they make good pizzas!)
“It’s the real thing” Coca-Cola (all others are imitations)
“We are number 2, we try harder” Avis (this suggests that in addition to trying harder, number 1 has become complacent)
A customer will ask “Why should I choose you over any other provider of your service/product?” You really need to answer this question.
Do something unique: Develop offers that compel people to do business with you, if you don’t have anything unique.
Your media advertising: Make sure it’s unique and there’s an offer, think about what would make you pick up the phone.
Market (more help with USP) Who is your perfect customer and how can you find more of them now how to find them?wear ideal clients and develop a USP:
Demographic: Things we know a group of clients have in common (driving a Ford Focus, earning £25k, taking 1 holiday a year, etc.)
Geographical: The area in which these people live
combination: Demographic and geographic: common points of the same area
List Brokers can usually provide a good list specific to your target market if you use direct mail, the more specific you can be with your list the better.
Affinity: What clubs or associations do you participate in and how can you use it to personalize a message (fan club, chamber of commerce, toastmasters, etc.)
Areas you could focus your USP on:
Service: Guarantee a first time solution or resulting fixes ‘Free’ (garage for example) or 24-7 coverage for an alarm company
Price – be careful if your USP is the lowest price as there is only one way to do it; even lower!! (normally leads to less profit)
More Value – Add more products than the customer would think they would get with the purchase, get a new software package and receive numerous ‘free’ upgrades, etc.
Exclusivity: Only 300 members in your golf club when there is a capacity of 500-600. What about ‘limited edition’ products that are only available through you?
Other USP categories:
Size: largest company in its field
Quality: The best ingredients in our kitchen
Convenience – easy access as it has most locations
Technology: Faster connection by having the most advanced servers
Unique product – our repairs mean you never need to repair again (car dents, engine fix)
The widest range: we have the largest number of widgets in stock
Critical: You must integrate USP into everything in your business (if you say you’re the fastest dry cleaner in the business, it can’t take three days to dry clean a suit) Your business processes must permeate every part of your business
Exercises to help establish a strong USP:
1. Write down all the features and benefits of each part of your products. You can speed up this process by asking your current customers and looking for the top three benefits your customers are looking for when dealing with you, and then use them in your message.
2. Write down all the benefits, services and features of your business or industry and then do the same for your competitors, then use the differences from both lists in your USP, this will identify you as different/unique.
Critical– Make sure your USP is relevant, your client should see that it is something they want from your services (if you have the most ‘grey suits in stock’, will that attract more clients?)
