Eleven Steps To Create A Powerful USP

Having a strong USP is about doing something unique NOT just being unique.

After all, consumers couldn’t care less if you are the only company with a zebra-striped logo and with company cars that feature angel wings on them. All they care about is how well your business is going to fix their problem or fulfil their needs.

So focus on your target market, who they are, where they live, what’s important to them, what frustrates them about doing business with companies in your industry.

Then identify how your company can offer value in a way that significantly out-performs all your competitors (either in an actual or perceived way).

When it comes to their views on USPs, business owners are divided into two camps – they either feel that they don’t have anything unique to offer customers OR they feel that they offer a better quality service or product than their competitors but they have no real way of justifying that.

Regardless of where you sit, these steps will help dig out a unique selling proposition that truly sets you apart from your competitors.

The most effective way to discover what’s unique about your business is to look at your business through the eyes of your customer.

1. Identify which needs are going unmet in your industry or market.

To do this, ask yourself these questions:

What needs, or what problems, do customers have that your product or service will fulfil? (Please be as specific as you can. The more specific you are the better the result).

How specifically do your customers want their lives to be different after purchasing your product or service? (Please be as specific as you can. The more specific you are the better the result).

2. What annoys people about dealing with people in your industry?

Sometimes creating a USP that centres on customers’ key frustrations can work very well.

You see, (rightly or wrongly) consumers have a preconceived idea that when they’re going to do business with someone in a certain industry they’re going to have problems.

For instance, people often believe that if they’re buying a home, the real estate agent is going to lie to them in order to get them to sign on the dotted line.

If they’re selling, they often feel that the real estate agent is going to over-inflate the appraisal price just to get the listing, then needlessly charge them squillions in advertising to find a buyer.

With used car dealerships, people perceive they’re going to be ripped off and sold a lemon.

The first step in combating those fears is to first identify what they are. Next, develop a USP that proves that you are above board, that you do a great job, that you do care about their needs, and that you do have the expertise to deliver.

Here are some more examples (in no particular order) of frustrations that people have when dealing with certain industries:

• Mobile phone company: poor coverage.
• Real estate: told lies.
• Tradespeople: unreliable, sloppy workmanship.
• Car dealerships: sold lemons, told lies.
• Fast food restaurants: unhealthy food that tastes horrible.
• Accountants: no vision and focused on the past not the future.
• Solicitors: overcharge.
• Couriers: unreliable.

So what’s your industry reputation like (regardless of whether or not it is deserved)? If it’s quite good, you’ll probably find that another type of USP will be better suited to your business.

3. How does your business stand out from your competitors AND offer a solution that meets your customers’ needs and/or solves their frustrations in a unique and very powerful way?

To work this out, ask yourself whether you do any of the following:

• Sell your products or services for a cheaper price than anyone else (and if so how much cheaper?)
• Have a much higher quality product or service than the competition?
• Offer much better customer service or product information than anyone else, at comparable or lower prices?
• Offer a money back or replacement guarantee that is twice as long or powerful than your key competitors?
• Provide more exciting bonuses, premiums or value added gifts than anyone else?
• Have a much larger range of products?
• Have a service department that is significantly larger than what your competitors have so customers get speedier service?
• Have a trade-in program that nobody else has?
• Serve a specific niche-market and are the only ones in your industry that do that, e.g. like the Australian Pensioner’s Insurance Agency or Shannon’s examples (get a copy of my book).

Or maybe there is something else that you offer?

So how do you compare with your competition?

When describing your point-of-difference forget words like “quality,” “service,” “number one” and especially “unique”. These words are vague, empty and clichéd.

Instead, drill down further and focus on the specific benefits that you deliver, the specific ways that you offer superior quality, superior service and so on.

• Price?
• Service?
• Quality?
• Market Share?
• Size?
• Range?
• Expertise?
• Other

4. Cull

Now that you have a list of points that differentiate your business, cross out the ones that you feel aren’t of great value to your customers.

For instance, if you have a bakery and it is painted bright orange so it stands out, that probably isn’t something that is of benefit to your customers.

5. Work on Specifics

With this shortlist, spend some time fleshing out these points proving how you stand out from your competitors. Go into specifics and offer proof.
For instance, with your service, what process do you go through to give your customer fantastic results?

6. Simplify

With your shortlist in hand, now simplify it. Cut out all the fluff and redundant words that don’t contribute to the sales message. Prepare a one paragraph statement that sums up your USP.

If you’re finding it difficult to summarise your uniqueness in one paragraph try writing it in two or three paragraphs. Once you’ve done that, then edit it down to one paragraph.

7. Prove it

Now that you have made the claims about how you stand out and developed your USP now it’s important to look at how you can maximise the credibility of your USP. In other words, how can you prove those claims? One of the most powerful ways to do that is by offering a guarantee. Is it possible for you to guarantee something?

For instance …

“The cheapest prices in town or we’ll refund your money plus 10%.”
“Delivered in 30 minutes or it’s free.”

8. Create a Tagline

With that short statement, look at the individual words and see if you can reduce it to one catchy sentence that you can use for a tagline. You’ll need to cut out even more words but also see how you can replace “dull” words with spicy, crisp ones that stand out.

For instance, the word “need” is more attention grabbing than the word “require” and the word “beautiful” is much more powerful than the word “aesthetically pleasuring”.

Come up with a list of three to five.

9. Get reactions

Survey your top customers and ask them which of the taglines they prefer better.

10. Educate your team

Discuss your new USP with your team and educate them about how powerful it is as a differentiation tool.

It’s a good idea to involve them in the USP development process as well. That’s because your team members are at the coal face and liaise with customers at all different stages of the sales and fulfilment process. With that, they will often have some unique insights into how your company can stand out.

11. Promote

Once you have finalised your tagline it’s now time to get the word out about your USP. Integrate it into every marketing project of your business. Use it in your display advertising, direct mail and sales processes.

• Advertising headlines
• Business cards
• Letterhead
• Signs
• Brochures
• Elevator pitch
• On hold message
• Sales presentation
• Website
• Point of sale material
• Tagline underneath the logo
• “Why Us” statement

For more examples get a copy of my book the Marketing X Factor on the Nic Clark shop.