Must you have a USP or unique selling proposition to succeed in business and to win orders?
The answer really depends on the competitive situation your business has and how well informed your customers are.
Let me explain.
What Is A USP?
Your USP is a short statement or phrase that explains why customers should buy from you rather than your competition.
>>> What is a USP?
Interestingly, the place where it is effective is in the mind of your customers.
This means that your business may have a compelling USP but you don’t recognise it or reinforce it in your marketing although your customers know why they buy from you rather than your competitors.
Other times your customers may not have a good reason to buy from you or whatever the reason was, it has gone.
You’re benefiting from convenience, a low price or apathy (often called customer inertia) but you risk losing this business without any notice. You customers have little loyalty and therefore, your sales can be taken away by a better positioned competitor.
You Can Have Sales Without A USP
I’d like to image that a water pipe has burst in your house and before you turned the stopcock off, water had started coming through your kitchen ceiling.
You need a plumber urgently.
You look at Yellow Pages (or on the Internet).
There is a list of emergency plumbers all offering 24/7 service in your area.
Each says just about the same thing.
You must make a decision because of the urgency of the problem.
You can’t make a rational decision. There is no difference based on the marketing you see.
You pick a number at random. You call but you’re told that they can’t get a plumber out for four hours.
You need the water back on in your house before that so you decline.
You pick another number at random to call.
You ask “Can you get a plumber out to me in two hours or less?”
“Sure.” says the reassuring voice on the telephone. You agree and wait.
Three hours later you call again.
You’re told that the plumber has been delayed but has just left their last call and he is on his way.
90 minutes later you call again because the plumber hasn’t appeared.
You’re angry.
The voice apologises and offers to cancel although you’re told again that the plumber is on his way and should be with you in 30 minutes.
Do you cancel and go back to the end of the queue with someone else or do you stick and wait?
When Is Differentiation Important To You?
Differentiation is much less important when:
- The problem is urgent. You can’t afford to procrastinate so no matter how much you dislike it, you are forced to make a decision.
- The problem is trivial. I don’t care about paper-clips much although I notice that the last box I bought are bright colours rather than plain metal. I suspect it was all the store had.
Even then convenience and speed can be used as differentiators if price isn’t the ruling factor. When solutions are urgent or trivial, the buyer doesn’t have either the time or the inclination to shop around. In these situations, good enough really is good enough.
When I used to work in an office, my choice of where to get lunch varied. Sometimes near and quick were the important criteria. Other times I wanted to stretch my legs and give my mind a break.
Try To Understand Your Own Purchasing Decisions And Patterns
Every time you buy something for your business or personally, stop to ask yourself why.
- Why did you choose that supplier?
- Why did you choose that product?
You’ll see that sometimes price and convenience rule. Other times you’ll be surprised at how you accept that some things are different or better.
As you understand your own decisions, you will gain more insight into how your customers make their decisions.
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