For a long time, business people have emphasized the role of “differentiation” in business, also known as “competitive advantage” or USP (Unique Selling Point). That’s what your competitors don’t have and why customers can only buy from you.
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In this article, I will help you understand what the USP is, how to find the USP as well as the USPs of successful businesses in the world.
What is USP?
USP stands for the first 3 letters of Unique Selling Point, which can be translated as unique selling point. USP is a factor that differentiates your product or service from your competitors, such as lowest cost, highest quality, first in the market, or some other differentiator.
Good USPs have a unique quality and can explain how that quality will benefit a customer, all with a few words that carry a memorable message. Many companies past and present use USP as their tagline, so that they can convey them to as many potential customers as possible.
Benefits of USP
USPs can generate a lot of benefits. But there are 3 outstanding benefits:
Build trust – Unique Selling Proposition earns the trust of your customers. You do this by letting your customers know what products you can offer and where you are more effective than your competition. Inform potential customers about your business – Through Unique Selling Proposition , you can let your customers know who you are. That helps you to widely publicize your business and your position in the market. Bringing your business to the top of the market – Effective Unique Selling Proposition will definitely help your business beat the competition. big and small competitors. Therefore, you can easily prove to potential customers that you are number one.
Why do I need a USP
?Do you really want to dive into sales and marketing? Surely you must understand the importance of USP. Similar to those who are just starting out in business, you may not know how important it is. But if you already know, then you don’t have to worry. You can apply the guide in your article to learn more about the USP. Take a look at the figure below to understand the importance of USP in business.
Unique Selling Point – USP must highlight a unique benefit for customers, giving them what other competitors do not have or cannot imitate, and it must be attractive to attract new customers. Eg:
Domino’s Pizza commits to deliver to customers within 30 minutes, if you exceed this time, you will receive a free cake. M&M says that their candy only melts in the mouth, not in the hand. FedEx locates them on Worldwide express delivery map with overnight delivery commitment.
Businesses should only focus on one Unique Selling Point – USP. That will help your business stand out from the competition because you’ve positioned yourself in the right place. Instead of trying to position everything, a business should focus on a unique selling point that makes up its own position.
When consulting Marketing for businesses on marketing and sales, I find that most businesses make the mistake of trying to position everything instead of a certain USP when they start a business or launch a new one. new product. They want everything to be perfect, and they want all the information to reach the customer. They want to stand out for the best quality and lowest prices and top-notch customer service and best features… and in the end customers don’t remember what you stand out for.
The main problem is:
When you try to stand out about everything, nothing will stand out.
4 steps to creating a successful and effective USP
Remember that the USP is not a tagline but a good tagline summarizes the entire USP fully in one sentence to make it impactful and digestible.
The purpose of the USP is to answer one question: “Why should a potential customer buy from you?”. A successful USP can be just a few words (like a slogan) or a paragraph. Word count doesn’t matter, as long as you capture and articulate your promise to your customers, setting you apart and creating desire.
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Step 1: Find out what customers want
First, think about what customers appreciate about your company’s products or services or your competitors. Find out the basic common ground of all suppliers in the industry and look for what makes a customer decide to buy a product or service.
You should invite people with knowledge in the industry to join the inference process to further expand the values to look for. Then talk to the sales team, the customer service team, and especially the customers.
For example, your customer is male, 22-35 years old and interested in sports shoes. Take the time to learn the habits and desires of shoe wearers sport by answering questions such as:
Under what circumstances do my customers wear sports shoes? What shirt/pants do they usually wear? Why do they choose to wear sports shoes? Under what circumstances do they usually use sports shoes: playing sports , go out with friends, travel… What is the maximum amount a customer spends on a pair of sports shoes? How long does it take them to want to buy a new pair of shoes? What are their fashion trends? ?When consulting sales, what information will my customers want to know?
These questions not only help you understand what customers need and want when buying a product, but also help you better understand the real benefits that your product brings to customers. This is what matters most and why your customers buy your product.
“Understanding the customer is the beacon for finding the USP.”
Step 2: Know Your Competitors
To beat the competition you must have a unique and perfect USP, you need to know some of the competitors in the market. That means you need to research their website, how they do business, how they take care of their customers, and countless other things. You also need to analyze your competitor’s USP and analyze how they create it. From the above research you will derive what your competitor’s USP is and how they created it.
“Know the enemy, know me, find the advantage”
Continuing the shoe sales example, you sell shoe products and your competitors are selling well because they offer the most competitive prices in the market for similar products. Customers come to them because their prices are cheap. Then, price is your USP – because this is a feature only they have that you don’t have (or you don’t do as well).
From this analysis, it is easy to see that price competition is not feasible in this case. Then, your advantage USP will probably be lifetime shoe care, waterproof, fashionable shoes… and of course, at the same time, you can price yourself in the higher segment.
Step 3: Understand Customer Motivation and Buying Behavior
You need to know what drives and drives customers. It’s not simply the traditional way of analyzing customer demographics like: age, gender, race, income, and geographic location.
For the pizzeria example, surveying to know that 75% of your customers are between the ages of 18 and 25 isn’t enough. You need to consider what motivates them to buy pizza? Taste, convenience, and more Cosmetics and alcohol companies are great examples of industries that know the value of promoting psychological orientation. People buy these products based on their desires (for beautiful, luxurious, glamorous women, etc.), not based on their needs.
Step 4: Preserve the Difference and Use:
The final step is to protect your USP. Surely, as soon as they see you promoting your USP, competitors will do their best to counterattack. If you build a great website, your competitors will respond with a better designed website. If you’ve just developed a feature for your product, your competitors will be there in a few weeks.
Thought it was done, you can safely sell effectively. Speaking of this, I would like to take the words of Uncle:
“The Hung Kings had the merit of building the country, our uncle and grandchildren must protect the country together”.
Your newly built achievements are always in the sights of competitors in the market. They can imitate and rob you of your hard work for a while. Therefore, once the USP has been identified, do not stop. What we should do now is continue to develop that USP better and better, promote it to a wider audience. Even further, your research and development of other USPs is essential to continue your market leadership position. This is really important in a market that is diluting day by day and there are so many easy to find substitutes today.
If a difference has been built, it must be protected. Only by doing so, the opponent will not be able to catch up. And when they catch up, you’ve moved to another level.
To crystallize and communicate your unique strengths, ask and answer the following questions:
What makes your product/service special? What does your product have but competitors don’t? Is that difference easy to duplicate? This power can be communicated easily. easy?
Characteristics of an effective USP
Not every entrepreneur who is new to business doesn’t know how to create an effective USP. But if you are one of them, you will have to expand your ideas. To help you, I’ve listed some characteristics of the ideal and successful USP for both large and small businesses.
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Unique and enticing Creates an instant euphoriaCompetitive hard to imitateInteresting with your potential customers.
Wallet Example: Same rice but our rice is Highland Rice – no chemical fertilizers like regular rice – This is a unique attribute that is different and stands out from other attributes and must hit the heart black (Reason to buy for health safety).