Offering something unique and filling a void in a market will almost always lead to business success. When considering a new business venture, it is critical to assess the competitive landscape thoroughly to identify opportunities that will capture customer segments that are not as heavily targeted. Opportunities to create a sustainable, successful business may not be readily apparent, especially in markets that are saturated with competitors offering similar or identical services. Unfortunately, failure to understand the nature of excessive competition within the marketplace can be a death sentence for the overly eager entrepreneur before even opened their doors. A fledgling business owner with nonexistent or stagnated growth may ask, “What can/should I do to attract customers and show them that I am different and better than the rest?” In this week’s blog, we go back to business basics to solve this dilemma.
One of the core tenets of a business is the unique selling proposition. This is the one “thing” that signifies your business offer, differentiates you from the competition, and constructs the framework for strong brand growth. Don’t blindly enter the market and expect the customers to flock to your doors, despite offering a similar spectrum of products or services as the local competition. Instead, formulate your unique selling position and market it. A USP can be something as simple as your specific location, expertise, inventory of exclusive products, or regular sales specials. Attempts to satisfy each and every potential customer risks the chance of pleasing no one at all – one must design and tailor his or her business’s USP to its target audience that values the products or services the most. If customers cannot pinpoint what is unique about your business, they will have virtually no reason to choose it over your competitors.
Courtesy of B2B Marketing, we echo five main actions that firms can employ to further their USP:
- Use customer segmentation to identify your target audience: think about what the customer wants, identify their common desires, and offer products and services that satisfy those specific desires to ensure customer loyalty.
- Identify key purchasing drivers: the stereotypical example here is price, however, this is incorrect. According to B2B Marketing, only 20% of any B2B market prioritizes price over all other factors. Instead, focus on product or service quality, customer service, or company culture.
- Position against the competition: in successfully analyzing the market and discovering its gaps left by the competitors, one can leverage his or her business’s strengths in catering to customers ignored by these gaps.
- Be concise and memorable: use a single sentence, or phrase, in describing your USP if at all possible.
- Continue to hone and reinforce your USP as your business grows: do not focus merely on sales or customer-facing efforts. Imbue your USP throughout your organization – it need be embedded within the company’s identity to truly become memorable and lead to success.
Want to learn more about Acara’s business consulting services and advice? Reach out to Colleen Acunzo, Managing Partner, 203-488-0028 x305 or email at firstname.lastname@example.org for more information.