Friday, July 31, 2009

How To Define Your Unique Selling Proposition (USP)

How To Define Your Unique Selling Proposition (USP)

Defining your Unique Selling Proposition, most commonly referred to as the USP, is essential to building a marketing campaign and to illustrating to customers why you stand apart from and above the competition.

One of the first things you should do when starting a business is to define your USP: What makes your product or service stand out from the competition? What makes your product or service unique from the competition? You may run a construction business in a large city, where there are already a significant amount of other construction businesses: What does your business have to offer that the competition doesn't?

Defining your Unique Selling Proposition shouldn't be a difficult process, but it will require careful consideration.

Consider your customer's perspective

Understanding your business from your customer's perspective is essential to defining your USP. Why should your customers turn to your business rather than to the competition? Let's say you run a small mom and pop bookstore. Your prices are considerably higher than the larger chain bookstores, so what makes purchasing from your bookstore better than purchasing from a chain? Perhaps you offer first editions or you have top-notch customer service that is lacking with the competition.

Focus on the customer
Your full attention should be focused on what makes your product or service unique to your customers rather than why you think your product or service is unique. What is the unique aspect of your product or service in the eyes of your customers and potential customers, and how is it going to benefit them?

Find out why your customers choose you

What makes your customers purchase from you rather than from the competition? The easiest way to find out is to simply ask them. Offer survey cards that ask them to rate your product or service, or have an online survey on your Web site. There are a plethora of ways to find out what your customers are thinking, so be creative.

Check out the competition

If your business is still in its infancy and you haven't built a strong customer base yet, investigate your competitors to identify how you are different from them. If you're in the retail business, for example, go to your competitors' stores. If you're a writer, visit your competitions' Web sites. Knowing what your products or services offer that the competition doesn't offer is critical.

Define your USP

By now, you should really know what sets your product or service apart from the competition, so sit down and define your USP. When defining your USP, make sure that it:

Motivates your customers to buy from you
Is substantially different from your competitors' USP
Is beneficial to your customers
Provides value to your customers

Highlight your USP

Your Unique Selling Proposition is going to be a critical component of your marketing campaign. In addition, you must identify ways that you can ensure that your position in the marketplace highlights your USP.

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