Your Business’s Unique Selling Proposition: Why It’s Important, and How to Develop It (Part 1)
What makes your business unique from your competition? If you have trouble coming up with the answer, then you haven’t figured out your business’s Unique Selling Proposition (USP). A USP is what sets each business apart from the competition in its market, and defines what a company stands for, including its goals and values. In this post, we’ll explore why defining a USP is so important, and in part 2, we’ll look at how to define and develop one for your business.
Why is A Unique Selling Proposition So Important?
There are many different reasons to develop a USP, but what it comes down to is that it’s important to be known for something specific and set yourself apart from the competition by solving problems for your customers that no competitor can (or at least as well). Dawn, for example, is a dish soap that enjoys a strong following from loyal customers. Why? Because the company has positioned their products as being the best dishwashing liquid on cutting grease. They showcase this by donating bottles of Dawn to wildlife rescue groups, which use it to help animals caught in oil spills. Dawn not only showcases its USP but shows social responsibility—accomplishing an important PR goal in addition to a USP. Here are some other good reasons a USP is important to your business.
You Build a Better Relationship with Customers
In our modern economy, you have to do more than make a good product to get noticed. You have to tell a story, and you have to get your customers excited about your product or service. It’s hard to get excited about a product that’s pretty much the same as everything else out there. Sure, we all need lightbulbs, but unless there’s something special about those lightbulbs (for example, they help cut down on your carbon footprint or save you in energy costs), you’re not going to get excited about them. You’re not going to want to tell your friends about them, and you’re not going to want to engage with the company that made them. Your USP gives customers something to get excited about—something that will help you build a relationship with them and turn them into a loyal customer.
It’s Easier to Prioritize and Set Goals
Once you know what your USP is, life becomes much easier. You don’t have the time and energy to do everything, and having a USP forces you to focus on what’s most important to your business. You also can’t please everyone, so having a target market you can cater to will help you avoid trying to achieve the impossible of targeting everyone as potential customers. With this focus, it becomes much easier to prioritize your efforts and set goals for your business.
Your Opportunity for Growth is Expanded
If you’re working in a stagnant market, there’s only a certain point of growth you can expect to reach without a USP. Having a USP can help you rise to the top in these markets and disrupt them in exciting ways. You could also open up new markets for your industry, which could offer you expanded opportunities for growth.
You Have More Power Over Pricing
Pricing, of course, is all about supply and demand, as well as what the market will bear. You have a lot more control over your pricing if you’re offering something different from your competition. You have more leverage, because you’re offering customers a unique value for their money, and you won’t have to engage in pricing wars with your competitors. Whether you offer a higher-quality product, or a feature customers can’t get elsewhere, a USP gives you more control over your pricing.
The Bottom Line
The bottom line is that finding your USP is good for your bottom line. In today’s competitive business environment, you need to be able to stand out. There will be many new businesses in your niche in the future, whether your business continues to grow or not, so a USP is key for staying competitive and showing customers why they should choose your company’s product or service.