“With 50 other companies selling the same products and services, why should I do business with you instead of one of your competitors?”
The number of competitors you face as an online merchant is growing daily. If you can’t answer that question, it’s only a matter of time before the business closes.
If you can answer that question and answer it clearly, communicating it to your prospects in everything you do, your path to eCommerce success is paved with gold!
Your USP or Unique Selling Proposition answers the most critical question. If you’ve studied business for a long time, you’ve probably read or heard about the importance of having a strong and clear USP. However, you don’t have to do a lot of surfing online to see that few companies listen. Most know they need a PVU, they just don’t know how to develop one.
The process of developing your unique selling proposition is pretty simple (note that I didn’t say easy). I run intensive on-site PVU development workshops for my clients around the world. By taking these workshops, I have discovered 4 critical steps to developing your USP.
First, study your competition. Look for potential competitors online. Pick the first 5 to 10 and try to determine your PVU. Most will lack a clear USP as they look for some of the features or services that stand out.
Now look for the gap in your products or services. In what area of the market could we provide a better service?
Second, examine your own business. Sit back and share ideas with your staff on potential PVU concepts. Don’t judge the ideas, just write them down. To stimulate thought and ideas, ask the following questions:
- What do we do better?
- What do we do better than our competition?
- What awards have we won?
- What do our clients say about us?
- What compliments do we often get from our customers?
- What celebrities or well-known organizations endorse us? What guarantees could we get?
- What makes our product or service better than anyone else?
- What makes our business model different from the competition? How could we do it differently?
- What market category or niche could our service improve in the industry?
It also helps at this stage to interview and survey your current and past clients. Ask them why they bought from you instead of your competition. What do you want from a supplier of your product or service? What is important to them when making a purchase decision? What feature or benefits do you value the most or would like to see added to your product or service?
Third, start writing down and crystallizing your ideas. Don’t worry about length at first, just write down the key points of your PVU concept. Focus on the benefits to your customer of each concept. Develop a list of 5 to 10 possible USPs.
Show this list to your staff, friends, family, and current customers. Get their input and suggestions and use these suggestions and comments to reduce your concept of PVU to a single core differentiator concept.
Once you’ve settled on the most unique and attractive feature of your product or business, start to summarize it in a paragraph that clearly communicates and summarizes why your customers should buy from you. Use this paragraph on your website or in your printed marketing materials where you have more space to explain the unique benefits it brings to your customers. However, it is still too long for an effective catchphrase or catchphrase.
You still need to summarize your PVU in one or two focused sentences that clearly and concisely communicate the benefits of your PVU to your customers. This statement should not leave doubts in the minds of your customers about what you do and what makes you different from your competition.
This USP statement will become your motto or slogan. This process will take some time and your IP statement may require several revisions before you are comfortable with the final draft.
Fourth, integrate your USP statement into everything you do. Put it on every page of your website, on your letterhead, in all your advertising and marketing. Communicate it to your employees, managers and staff. Let it infuse your corporate culture. Every time you talk to your customers, employees or suppliers, you should mention this PVU. You can’t just lip service about your USP, you have to live and breathe it! It must become part of you.
Every product, business or service needs a USP that distinguishes it from the competition. It is up to you to discover or create this element of uniqueness. Differentiate yourself, your business and your products from your competition and watch your profits skyrocket!
Copyright 2004 Eric Graham