BY AMIT MITTAL, Business Coach, Consulting & Advisory
As discussed in our previous blogs, niche stands among the six pillars. We have covered 4 of them: Acquisition cost, Five Ways, All about Marketing and Sales, Guarantee, Lifetime Value and now we will discuss about USP.
Competition is natural in business.
Customers are overwhelmed with vast options available in the market. They rather prefer to quickly understand what makes a product unique or brand stand out. Being aware of the best way to position yourself and your products can mean the difference between standing out and blending in.
What is a Unique Selling Proposition (USP)?
A unique selling proposition (USP) is a tool used by salespeople, in your business, to communicate the key factors that separate your product from the competition in the market. This marketing strategy enables your company, service, or brand to stand out from competitors.
Forming an opinionated USP helps focus your marketing strategy and influences messaging, branding, copywriting, and other marketing decisions. At its core, a USP should quickly answer a potential customer’s most immediate question “Why?” when they encounter your brand.
USP is crucial to the power and effectiveness of your marketing. Your unique difference sets you apart from your competition.
For standing out from your competitors you need to observe and understand your competitors. You should survey the market and make a list of all the companies selling the same product. Next, we need to evaluate how they are excelling and what are their weak points. Additionally, we need to figure out what generally are the people’s reactions to the products sold in the target market by competition.
We have to identify what is unique that helps them to excel and have to differ in the same to get success in the market and make space with the customers.
To get a clear onsite check out the below points too for a USP:
- business outlet,
- other marketing material and sales materials.
A USP can give your business the top position in the industry and can lead to greater loyalty from clients, and greater profits due to margin improvement.
Industries like clothing, furniture, or hardware with a minor uniqueness present in their business can make itself stand out among its competitors and can make all the difference as far as sales and industry dominance are concerned – see the example below.
Simple USP Example
When a new maker launches a similar kind of product in the market, there should be something that will attract the customer to buy a new product.
Consider Shaving soaps that have long been advertised as “Abundant lather,” “Does not dry on the face,” “Acts quickly,” etc. One advertiser had a good chance than the others in the business, to impress those claims in its marketing and advertising material.
Then a new company arrives in the shaving sops field. They stated special facts to attract customers. They said:
“Multiplies itself in lather 250 times”
“Softens the beard in one minute”
“Maintains its creamy fullness for ten minutes on the face”
“The final result of testing and comparing 130 formulas”
As a result of this advertising, there had been a quicker and greater success.
Making Your Own USP
If you offer the same services or products as the competitors, you need to create an effective USP.
Types of USP
- Perceived USP – where the customer perceives a difference and uniqueness
- Actual USP – where there is an actual difference process
- Created USP – where there is no difference but you create one by using the process above
Finding your USP means having a good understanding of your:
- Target Market
Once you have done the above, ask yourself the questions
- Is there anything you offer that they don’t?
- Is there a process that you do better than your competitors?
OR maybe you and your competitors share a process, but they have not mentioned it anywhere in their marketing, advertising or, sales processes. If you are the first then you own it.
Some good current examples of products with a clear USP are:
Head & Shoulders: “Clinically proven to reduce dandruff”
M&M’s: “Melts in your mouth, not in your hand”
Olay: “You get younger-looking skin”
Red Bull: “You get stimulation of body and mind”
Some unique propositions that were pioneers when they were introduced:
Domino’s Pizza: “You get fresh, hot pizza delivered to your door in 30 minutes or less.”
FedEx: “Your package absolutely, positively has to get there overnight”
M&M’s: “The milk chocolate melts in your mouth, not in your hand”
Wonder Bread: “It helps build strong bones 12 ways”
Package Shipping Industry
Pain – I have to get this package delivered quickly!
USP – “When it absolutely, positively has to be there overnight.” (Federal Express)
Pain – The kids are starving, but Mom and Dad are too tired to cook!
USP – “Pizza delivered in 30 minutes or it’s free.” (Dominos Pizza)
(This USP is worth $1 BILLION to Dominos Pizza)
Real Estate Industry
Pain – People want to sell their house fast without losing money on the deal.
USP – “Our 20 Step Marketing System Will Sell Your House in Less Than 45 Days At Full Market Value”
Pain – Many people don’t like to go to the dentist because of the pain and long wait.
USP – “We guarantee that you will have a comfortable experience and never have to wait more than 15 minutes” or you will receive a free exam.”
Cold Medicine Industry
Pain – You are sick, feel terrible, and can’t sleep.
USP – “The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest medicine.” (Nyquil)
Pain – The market hates paying huge 300% mark-ups for jewelry.
USP – “Don’t pay 300% markups to a traditional jeweler for inferior diamonds! We guarantee that your loose diamond will appraise for at least 200% of the purchase price, or we’ll buy it back.”
A USP isn’t just a compelling line for your home page. It decides how you place your products or business in the world.
Your products don’t need to be unique to have a strong USP. Rather, look for a spot in the market where you can plant your flag in an undiscovered land.
There are various ways in which you could sell your products, but your USP best positions your brand according to what your customers desire and what your competitors lack.
We at MADASKY, business coaching believe the problems and the solutions go hand in hand, while there is a problem, a solution is a hope that is available and accessible in abundance to all who need it. Once you have selected the strategies for your business, we will work on implementing them together and Testing and Measuring the results. Our objective will be to reduce acquisition costs and increase the lifetime values of your “A” grade clients to your business.
Reach out to us and we will help you to overcome your business challenges and grow.
MADASKY Consulting, Business Coaching, Consulting & Advising.
Visit us: www.madasky.com
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