The natural order of business that every entrepreneur should be acclimated to is that competition is part and parcel of the business world. As such, it can be disadvantageous for new businesses that are just starting out. How do you ensure that you are able to maintain a competitive advantage in a saturated market where customers are spoilt for choice on what to buy and where to buy it? This is where having a unique selling proposition (USP) can significantly help your business.
What is USP?
Having a USP for your business can convince your potential customers that you are better than your competition. A USP should contain a distinguishing feature that enables a product or a service to stand out from other competitors in the market by focusing in and appealing to their core target audience. For example, one of the most saturated markets is the footwear market, controlled by giant brands such as Nike, Reebok, and Adidas, among others. But in what seems to be an impenetrable market, how did TOMS Shoes build a million-dollar business?
How does USP work?
From the example mentioned above, TOMS Shoes leverage the power of their USP to propel their brand to success. Besides selling shoes that are reasonably priced, comfortable, and lightweight, they developed a USP – One for One, which makes them uniquely different. In their USP, TOMS has pledged to donate a pair of shoes to a needy child every time they sell a pair of their own. This fete is summed up in their tag: One for One. This method was hugely successful, and most retailers began to launch similar models that tie consumerism with a charitable act.
How you can set up your USP
1. Know the uniqueness of your product
Take a look and reflect on what makes your product unique. You should consider it based on your customers’ point-of-view so you are able to understand where they are coming from. Find out what your customers may be looking for, what they need, how your product can solve their needs, and why someone will opt for your product instead of your competition.
2. Narrow down your customer base
The reality is, you can’t please everyone. Find the people who are most likely to benefit from your product and focus on their specific needs. Your services and/or products may become redundant, obsolete, and irrelevant if you present to uninterested people who may not see the needs to use your product. Figure out your demographics and who you are appealing to. Once you have identified your target audience, focus your marketing efforts towards them and aim to build a sense of loyalty in them.
3. Fill in the missing gaps in the market
Take the time to consider what your competition is doing – it can help you identify what is working and abandon what may not work. It can also help you identify the gaps that have been left by your competitions. While researching your competition, check their customer service, product availability, price, and the incentive that they give their customers.
4. Show how you solve a problem in society
One thing that can complete your USP is to convey a significant messaging of how you can solve a particular problem. This can make customers relate well with your company and trust your products. With consumers becoming savvier than ever, they are also more engaged and are making purchases based on their personal values too. When the message of your brand can align with the passions of your consumers, you can make the biggest impact in how they shop.
A unique selling proposition is a powerful antidote to what may seem like an impenetrable competition in a saturated market. With adequate market research and proper planning, you can push your business to greater heights with just the power of words.
Seek the help of expertise in your business journey. Outsourcing your functions like accounting bookkeeping services to a firm like Ackenting Group can help your business focus on providing what is essential to your customers. We aim to provide your business with a serviced financial platform so that you can be prepared for any situation and continue providing a unique selling proposition to your targeted customers. We also offer SME accounting services in Singapore among our wide range of business solutions, with financial solutions to aid you every step of the way.
If you require any assistance on accounting services, feel free to drop us an email at email@example.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.