How Competitive Analysis Can Help You Create a Killer USP
Competition can be tough. Because of this, it is important that your business stands out from competitors and gets the attention of your target audience. Luckily, just like people, every business is unique. Even businesses with similar products or services and target audiences have unique differences that set them apart from competitors. Sometimes, however, businesses don’t look into these differences and take advantage of them. That’s where competitive analysis and USPs come into play.
Defining Competitive Analysis and USPs
Conducting a competitive analysis is a crucial part of your company’s marketing plan.
Conducting a competitive analysis is a crucial part of your company’s marketing plan. This analysis consists of identifying your competitors and evaluating their strategies to determine their strengths and weaknesses relative to your own product or service. This is important to analyze because it will allow you to understand how the product or service you are providing stands out from theirs, and which points to highlight in your USP.
So, what is a USP? Also known as unique selling proposition, it is essentially a summary of what makes your business valuable and unique in the eyes of your target audience. Your USP is a statement of advantages you provide your customers that differentiates your brand from others. In order to effectively develop your USP, it is essential to understand your competition. Thus, conducting a competitive analysis is the best place to start.
Creating a Killer USP
Creating a USP starts with not only understanding your business, but all of the businesses you consider as direct competitors. In order to develop a killer USP, you need to ask yourself the following questions: What is unique about what I’m offering? How does my product solve a problem or fill a need? How is my product different from similar ones? In order to find the answers to these questions, your business will need to conduct a competitive analysis, as well as a SWOT analysis to better understand what you bring to the table and how it can be effectively communicated to your target audience.
Competitive analyses allow you to learn what your competitors are doing and the methods they use to convey their message to consumers. It’s important to understand how competitors use these methods to highlight their strengths because it will allow your business to effectively plan USP strategies relative to your own strengths. Because every business is unique, your strengths are bound to be different. By knowing how rival businesses highlight their strengths, you can pick up insight on best USP practices.
So, what’s the secret of crafting a killer USP? According to EDC, there’s a few core steps you can follow to create an effective message:
- Clearly communicate what you are offering (summary)
- Differentiate yourself from competitors (features)
- Identify the value you provide to your customers (benefits)
- Prove your claims (testimonials and case studies)
Once you have identified your value proposition, you can use it to clearly illustrate your sales proposition. By communicating your USP in a clear and concise way, your business will not only be able to catch the attention of your target market, but create effective marketing materials that further instill the value consumers will get out of your product or service. This in turn, will help you create a broad, loyal consumer base.
“ONE OF THE BIGGEST MISTAKES YOU CAN MAKE WITH YOUR USP IS TRYING TO FILL ALL NEEDS FOR ALL CONSUMERS. “
When thinking about how you want to formulate your USP, it is important to take note of common mistakes as well. One of the biggest mistakes you can make with your USP is trying to fill all needs for all consumers. You can’t be everybody’s everything, therefore, it’s important to correctly identify your value proposition, as well as the audience you are trying to reach, so you can be one thing to one type of person. With the help of a competitive analysis and understanding the value your product or service provides, you will be able to create a killer USP that attracts people to your brand, not your competitor’s.