I’ve said it many times – the most important key to success is you – and the second most important is your USP (Unique Selling Proposition).
Just as you should celebrate how you are different to everyone else, your brand should be recognised as being different from your competitors.
And it’s not just once – it is your ongoing ability to be different in some way from other businesses, social enterprises or charities in your market. Typically this is called your Unique Selling Proposition (USP), also called your Point of Difference. Your USP is what your business does better than anyone else. It describes what makes you different from your competition. , and gives your customers a reason to buy from you and not anybody else.
This proposition must be unique, something competitors don’t offer or promote, and so compelling it drives your target market to buy from you. Your USP will inform all aspects of your marketing plan.
You cannot expect to be successful if you enter a market with a product range or an idea identical to what is already out there. Your business doesn’t have to be dramatically different, but it does need to have a point of difference in the minds of your potential customers.
Most of us spend all of or more than the money we earn. What is going to make your potential customers change their spending habits to direct some of their disposable income towards you and your business?
Having a USP, even one that turns people off, is a competitive advantage that allows you to avoid the trap of trying to please everyone. As a small business operator, it may just be that you can be flexible.
Answer these questions:
What benefit is unique to what you offer?
Who is the target market most interested in this benefit?
What USP is already used by major competitors for this target market?
Attributes tell, benefits sell. Attributes describe your product or service. Benefits describe the way your product or service adds value to your customer, solves a problem or how it makes them feel. If you can’t find a completely unique attribute or benefit, consider highlighting something your competitors do not promote.
What you are offering (or promoting) can be different in:
- Attributes (eg. Up to date with legal matters, personalised service)
- Benefits (eg. Easier / faster / more effective project management)
- Price (eg. Premium or competitive)
- Delivery (eg. Pre-planned series of meetings/ phone calls / VOIP)
- Range (eg. Niche – commericial only, specialising in…)
- Packaging (eg. Pre-prepared plan)
- Promotion (eg. outrageous, controversial)
- Design (eg. brand, reputation, latest projects)
- Quality (eg. high or low)
- Style (eg. colours, sizes, made to order)
- Additional services or warranties
- Convenience
- Image
Your USP is not:
- Your Mission
- A meaningless slogan
- Sales pitch
- We’re the biggest
- We’re the best
Once you’ve established your USP, try to describe it using five to ten words. It needs to be descriptive and honest and it needs to be sustainable. If you are currently making handmade clothes but you intend to have manufactured clothes in the future, you should not highlight handmade as part of your USP, as it will become synonymous with your brand and you will be breaking your customers’ trust if you start manufacturing.
FedEx challenged the entire courier industry when it launched its USP via a marketing campaign with the tagline, ‘When your package absolutely, positively has to get there overnight’. Of course, FedEx had to ensure it could deliver on its promise by having the systems and processes in place for overnight delivery.
The same can be said of Domino’s Pizza when it launched into the competitive fast food market with ‘You get fresh, hot pizza delivered to your door in 30 minutes or less or it’s free.’It would have been too risky and costly for this campaign to backfire, so Domino’s ensured it could deliver.
Coming up against the market leader Smarties required a specific USP and M&M’s made massive inroads with ‘Melts in your mouth, not in your hand’.
When Avis entered the market it strongly challenged Hertz in car rentals with, ‘We’re second, so we try harder.’ This worked for Avis as people were willing to give the underdog a go.
A local golf coach claims “I teach people how to hit a golf ball as straight as they can or the lesson is free”
A personal trainer ‘only for nerds’!
What makes you different?
