If you’re like most business owners, you’ve heard about why having a unique selling proposition (USP) is important. However, it may be time to update your strategy to a more consumer-focused proposition that helps capture market share as consumer preferences evolve.
What is a USP?
In marketing, the unique selling proposition (or unique selling point) is the one thing that differentiates your business from competitors. It’s what makes it unique and special and helps determine your branding and marketing focus.
By knowing what makes your business unique, you can decide how to position your products, services, and brand to better captivate customers. These efforts can make your business more likely to dominate in the marketplace.
Case study: Sustaining an elder care business
Alice started her elder care business 15 years ago. At the time, she lived in a rural area with no elder care options other than traditional assisted care facilities. Alice was the first to set up care homes to provide elder care for older adults in converted private homes.
Since she had no competition, her unique selling point was easy to articulate. For older adults who wanted to live in a home, have their meals provided, and have access to round-the-clock staffing at a lower cost than assisted care facilities, Alice's business was the best option. She dominated the consumer market share in her area for 10 years.
When other elder care options began popping up, Alice saw her share of the care home pie diminish. To compensate, she marketed more aggressively and held tenaciously to the belief that she was a known entity, believing that would help her business win in the market.
She was wrong.
To be competitive and take back market share, Alice needed to update her strategy.
The stakes were high. Alice had to turn things around or her marketing message would continue getting lost in the crowd. Together, Alice created a new unique selling proposition and streamlined her marketing efforts to match what consumers were looking for.
USP should focus on the consumer experience: What will the consumer get from the product? Consumers want to understand what’s in it for them and not feel like they're just being sold to.
5 Steps to Find Your USP
If you're like most business owners, you want to spend your marketing dollars wisely, stand out from the crowd, and lead the market. That’s why it’s crucial to define your unique selling proposition in a way that inspires consumers to take action.
Here's how to upgrade your USP:
1. Identify your uniqueness.
Answer this question: What is unique or special about your business, product, or service?
Having a conversation about this with someone you trust can help spark great ideas. Being comfortable will help your creativity flow.
2. Conduct a competitive analysis.
A competitive analysis looks at other businesses in similar market categories and compares their products and services. If you don’t know how your industry is classified, use the North American Industry Classification System (NAICS) as your starting point.
Once you know your market category, research competitors who offer similar products and services and target similar customers. Explore how your competitors market their products and services.
Next, hone in on your direct competitors, the ones offering the same products and services to customers in the same market category. If you’re unsure who your direct competitors are, ask yourself: Who would my customers turn to if they didn’t buy from me?
Write down anything about your product or service that your direct competitors can’t easily duplicate, reproduce, or copy.
If you're like most business owners, you want to spend your marketing dollars wisely, stand out from the crowd, and lead the market. That’s why it’s crucial to define your unique selling proposition in a way that inspires consumers to take action.
3. Stop the scroll.
USP is about grabbing your target customer's attention. With so many consumers finding products and services online, you need to figure out a way to stop their scrolling long enough to read about your offerings.
Help get your target customer’s attention with a crisp, clear image. Create compelling content that speaks your target consumer’s language and resonates with their needs to capture their attention even longer and leverage your unique selling point.
Since you’ve already done a competitive analysis, you know how your direct competitors talk about their products and services. You’ve seen their catchwords and phrases. Now you need to develop your own attention-grabbing catchwords and phrases.
Write down the first words that you associate with your brand. Then, walk away, pause, and breathe.
Next, think from your customer's perspective. What emotional needs can your product or service help them solve? Circle or highlight the matching words or phrases you think will resonate with your customers.
4. Craft a memorable USP statement.
Combining what you learned from the previous steps, write down words and phrases that express your unique selling position. Clearly state what the benefit is to your consumer. Make your USP statement concise, to the point, and consumer-focused.
5. Track industry trends.
Many small-business owners overlook this vital step. After all, they’ve already figured out their USP, have a memorable USP statement, and know the direction of their marketing campaign. That was Alice’s viewpoint too.
Grabbing the biggest piece of the consumer market pie one year will feel good. Grabbing it for many years can give your small business financial stability and longevity.
Many tools are available to track industry trends, and you can usually start with a free trial.
The Takeaway
To remain competitive and capture the biggest piece of the consumer market pie, you need to know what's unique and memorable about your company. Follow these five steps and discover your USP to help position your small business for long-term success.
A version of this article was originally published on April 20, 2011.
Photo: Getty Images
