One of the biggest mistakes a small business can make – especially a young small business – is trying to be all things to all people. This article will show you what it takes to create your own unique selling proposition (USP) in order to become successful.
You’ve probably heard the old adage “If you don’t stand for something,
then you’ll fall for anything.”
While the quote refers to politics and ethics, the same thing can be said for your small business, only it might go something like this:
“If you try to stand for everything, then you’ll fall.” Period.
From a marketing perspective, one of the biggest mistakes a small business can make – especially a young small business – is trying to be all things to all people. Think about it: If you ask your potential customers to buy from you because you’re the “best,” what exactly does that mean? The word “best” is very general, and today’s savvy consumer can smell ad speak a mile away.
However, if you ask them to buy from you because you’re cheaper than your competitors, they understand that. They know you have to back up your claim or lose their business. Or, if you tell them your company is compassionate and caring, they can easily identify that as something they need.
The point is, carving out your own niche in your market is essential if your business is to grow and thrive. You can’t be all things to all people.
However, if you can identify your Unique Selling Proposition (USP) – the one thing that sets you apart from your competitors - and thread it through all your marketing materials and customer touch points, then you’ve positioned your company for success.
So how exactly do you go about creating your USP? It will take a little effort on your part, but it will be worth it in the long run because it will put you in a power position in your market.
Recruit three to five key employees, advisors, or trusted friends who understand your business and your customer to help you build your USP.
1. Define your benefits.
Keeping your customer in mind, define the three things about your product or service that is (or should be) important to our customer.
2. Define your competitors’ benefits.
In order to be “unique” in your positioning, you need to know how your competitors position themselves. After all, your USP needs to separate you from everyone else, so don’t go anywhere near their USP.
3. Identify your customers’ needs.
It’s important to remember that your USP isn’t so much about you as it is about your customers and how it will make them feel. Think about what the “benefit” of your product/service, not the “feature.” For example, if you have more experience than your competitor, this feature might translate into the benefit of peace of mind for your customer. Keep it about your customer.
4. Identify market deficiencies.
Is there a gap of service or performance in your industry or market area that your company can uniquely fill? For instance, our local pharmacy has to compete with the big drugstore chains, so what do they do? They deliver! Consequently, they maintain a pretty brisk business.
5. Create a first-draft USP.
Once you’re through gathering all this information, it’s time to create your USP. Taking everything into consideration, loosely write your USP statement – the idea here is to just get it on paper. Of the utmost importance…focus on ONE of your benefits.
6. Refine your USP.
Now, take your first-draft USP and tweak so that it is simple, singular, and powerful. Don’t use any extraneous words. Focus all the information you have gleaned, and distill down to its essence.
7. Integrate your USP.
Use your USP in all your marketing, advertising, and branding materials. Keep in mind that a USP is different than your advertising slogan, but your USP should be the basis for it. Your USP needs to be the power behind the punch in everything you do.
How you differentiate yourself in the marketplace will ultimately determine your success or failure. Going through the process of creating a powerful, dead-on USP can be a little time-consuming, but it’s worth every second…and a whole lot more.
(c) Copyright 2008, BusinessBurrito.com. All rights reserved.
