Are you satisfied with the success of your online business? Or is there an opportunity to capture a greater share of the market, sell more, work less, and realise a greater profit? Chances are there is always room for growth.
One way to stay ahead of your online competition is by promoting the difference between your company and all the others, otherwise known as your unique selling proposition.
The Unique Selling Proposition
To best understand the concept of a unique selling proposition (USP), focus on the word ‘unique’. What can you do for a customer that the competition can’t? Two companies can sell the same type of widgets for a comparable price. But what is the unique benefit or advantage that your business provides?
Think of the USP in terms of both subjective and objective factors. Things like price, quality, brand, functionality, size of inventory, range of offerings – these are all objective and things that you can easily change. If your widgets are priced over those of a competing company, for instance, then you can find another source that allows you to buy them cheaper, or perhaps develop a more favourable contract with the current vendor by buying in greater bulk. If this is your main focus, then your USP could be that you sell the cheapest widgets available, guaranteed. Maybe you don’t want to be the cheapest, though. If you want to be known as the “best” widgets, then that should be your unique selling proposition.
The subjective factors are a bit harder to define and change but for many consumers, they are more important. These USPs might be the level of customer service, a liberal return policy, technical support after the sale, superior industry knowledge, friendly employees, etc. In this case, your USP might be that the company’s sales staff are the friendliest, most knowledgeable in the industry. Truly, the value of online customer service cannot be overrated and this is a good factor to highlight.
The Market Niche
Closely related to the USP is the niche – but they are not the same things. The USP tells a potential customer what to expect when doing business with you; the niche defines the unique products or services your company offers.
The best niches are those that revolve around a need that is underserved, or not addressed enough (or at all) in the current marketplace. Going through the steps of creating a marketing plan will help you realise which niche may prove most profitable. If there are already 1,000 other companies online that offer one type of widget, then adding your company to that number is unlikely to result in success. But offer a more specialised widget, or one that has greater overall functionality, and you could find a very profitable market niche.
Practical Use
When you have defined a USP and market niche relevant to your business and its goals, capitalise on them. Include the one most important thing that sets your company apart from the rest is your business tagline, your advertising, marketing materials, mission statement, and of course, on your website pages (within the About Us and FAQ pages in particular).
Remember that in order to be successful within your niche and promoting your USP, you must deliver anything you promise. If you wish to focus on always providing widgets for the lowest price, then make a commitment to honour a lower price your customer may find elsewhere.
When your marketing efforts help you prove that your company is perceived as different from (and better than) other companies, you will stay ahead of your online competition and your reputation and sales should soar.
See you at the top of Google!
Sean Rasmussen
SEO Australia Pacific
AussieSEO.com © 2007 - 2010
Great blog. Lots of useful advice
Great blog about staying ahead of your opposition. The Unique Selling Proposition is something I hadn’t thought of before. I knew about Market Niches but your points made me think more about it. Delivering what you promise is what everyone wants from people you do business with.
.-= Tania Shipman´s last blog ..Internet Marketing Competition – Win Cash and Prizes =-.
This blog is great in the way it really opens your mind to all the different ways you can gain the advantage over your competitors. Thanks Sean
Really liked your message here.
One of my High School teachers, Mr Peter, was most pedantic about the word UNIQUE ! He insisted that an object was either unique or NOT unique – in other words it couldn’t be more or less unique than some other item.
I’ve been aware of the USP [ unique selling proposition ] for quite a few years having done several sales courses way back when……..
Best illustration I can recall is when I flew the Red Baron open cockpit seaplane which carried 2 passengers at the same time. As far as I know, it was the only open cockpit aircraft in Australia in which a couple could share the open cockpit environment. That really had a USP and we played on that fact for the whole 8 years. Very successful operation. We delivered lots of thrills and got lots of smiles. See it at http://www.squidoo.com/funwithseaplanes2
Universal Wealth Creation also has a USP in the incredibly high standard of Customer Service offered by all the staff members. Makes one wish to do more business with them.
Cheers
Harry
.-= Harry Lynn´s last blog ..SEAN RASMUSSEN’S ” LEARN AND EARN ” COMPETITION. =-.
Thanks Sean,
You have given me something to think about. In order to be ahead of your competition you need to offer something unique. That the price, quality and demand are all very important but also that it might not be in the product itself that is unique but how you can stand out from the crowd can be in offering outstanding customer service, reliability and delivering what is promised.
.-= Bev Langford´s last blog ..Internet Marketing Competition – Win Cash and Prizes – Learn and Earn Free =-.
Exactly right Bev. Your uniqueness does not have to be a physical thing. In fact in my retail experience I have had customers tell me that they would rather come to me and pay a few dollars more because they felt more comfortable in my store than the chain stores and that I gave better service.
I definitely have something to think about now with determining the USP for my business and finding a Market Niche for my jewelry. There is a lot of competition in my market.
Oh widgets… everyone seems to have a widget for sale and it’s up to us to realize it’s not the best price that keeps us coming back, it may be the best colour, selection or simply the best customer service. Do the widgets come from a reliable source or did we just stumble upon another person/company selling what everyone wants?
Sean sells great widgets which have long term effects for everyone involved and I keep coming back for more
.-= Sarah Butland´s last blog ..The Magic of Believing Review =-.
People in business often mistakenly think by simply making their product the cheapest, they will automatically get the customers, but personally, I feel customer service is more important then price. I think giving A1 customer service will definately help you to stay ahead of your competition.
.-= Jackie Stenhouse´s last blog ..Falling Pregnant =-.
Being able to spot if a niche, that is not being well catered for, would certainly be a very profitable skill to process.
I agree with you where you say to clearly define what your Unique Selling Proposition, so the customer has clear expectations. And it is also therefore very important to ensure you consistently deliver upon your UPS.
Also good customer service is something that can really separate any business from the crowd, much of big business these days seem to have lost focus on this area, which I believe leaves the door wide open for small business.
.-= Cade´s last blog ..Learn & Earn from Aussie Internet Marketer Sean Rasmussen for free. =-.
Sean, this is a post which has come at a good time for me. I am looking for a new profitable market niche and this information about the concept of unique selling proposition is very useful.
.-= Melanie Braggs´s last blog ..Building Chicken Coops =-.
Glad the article is beneficial to you Melanie. Happy researching
Great blog, I will have to read it again because there is so much to take in! I will definately have to join twitter, I can see how that spreads the word much faster. I also noticed Sean’s followers on twitter increased from 58,000 on fistful of dollars to 71,297 on the video for a few dollars more!!
Hi Sean,
Very handy information on staying ahead of the competition. I’m inclined to favour the money back guarantee as a big decider when I am making an online purchase.
If I see a competitor has the same widget at a cheaper price but has no statement about a money-back-guarantee than I will always pay a little bit more to have peace of mind in case something goes wrong and I need a refund.
Very handy information here, Sean. Thank-you.
.-= Jill Brown´s last blog ..Common Law Marriage – What is Common Law Marriage? =-.
I agree Jill, some form of money back guarantee is important, and is one of the areas you can stay ahead of the competition. If you have a great product, there’s no need to be worried about providing too many refunds anyway
After running my retail store for 6 years I know that offering a refund is a great way of giving people the reassurance to buy from you. It takes away any risk from them. Be aware though that there will always be a small percentage of people who will take unreasonable advantage of your refund policy. My advice when it comes to online sales is to not get too hung up about it and just smile nicely and process the refund. Sometimes even the most habitual “buy and refund” customers will actually buy something and keep it.
A great post. We all need to have a USP but it’s not the be all and end all. You can have the best web-site in your niche and a really compelling USP but unless you can get traffic to your site then all your efforts are not going to come to much in terms of sales. I trust that Sean will provide us with some insightful training to help us all get great traffic coming our way with their paypal password ready.
This reads a bit like something you would find in a standard (offline) Marketing textbook. Pretty standard sort of things to do when you are trying to differentiate your product. The problem is that many people don’t remember these things and it was nice for us to get a reminder. Thanks.
.-= Lincoln´s last blog ..Olympic Park =-.
Delivering your promise, as Tania said is key. As it is vital that you are your word. As with anything else your reputation will soon build, and online it will build more rapidly than ever, and you want it to be anything than bad so better deliver on your promises! It is definately a good thing in business to have an advantage over your competitors! thats what will define you as sucessful !
Sean, it’s evident that you have ethics and integrity behind what you deliver, making commitments to honour our words and promises.. that’s awesome, and it shows with all the goodwill you’ve created.
Love what you say about Unique Selling Proposition. A key component of a successful marketing campaign. Like making a chocolate cake without chocolate, we would only have a cake – its the chocolate that makes it unique! Look forward to more info while I re-read this. Loving it!
Ahh Tara, while scrolling through the comments I read the word Chocolate and had to stop in my tracks to read the rest of the comment
It does become really important as you begin to grow to ensure that you develop your own USP. As you say, we all need to be unique and that shouldn’t be too difficult as that is a personal trait that we all carry.
.-= Cemil´s last blog ..Scribe SEO Plugin – Making SEO Easy =-.
Hi Cemil,
Glad you like the chocolate cake analogy, it speaks to me too!.
You are SO are right, we ARE all unique, its just finding out out way to convey that to others, which happens along the way as we continue our journey.
I have noticed that even some companies that may have been around for a while still miss the point made in this post; the Unique Point of Difference I agree is vital if you want to stay in your customers mind. If there isn’t anything unique about your business, why would the customer choose you!
The same applies to internet marketing
.-= David Pearse´s last blog ..Learn Internet Marketing For Free!!! =-.
That true David. I am doing a short social media course and its one of the first things we learnt in the marketing component. Perhaps big businesses need to go back to basics!
Thanks for this Sean. I guess the take home message is to have at least the perception that you have a USP.
.-= Anthony The Travel Tart´s last blog ..Become Vampire – Or At Least Kill One Yourself With A True Blood Stake in New Zealand =-.
Hi Sean,
It’s not easy staying ahead of the competition. One of my other big mistakes has been to not adequately define my unique selling proposition. I still don’t have the answer to this one.
I don’t think it’s enough to have the cheapest product, or the best iron clad money back guarantee, or the best customer service. A lot of businesses will offer this. So I’m still looking for my unique selling proposition.
.-= Jazz Salinger´s last blog ..Learn and Earn – It’s a Marathon Not a Sprint =-.
I am amazed how similar online marketing is to the classical offline marketing.
In both cases you need a good quality product, a unique selling point to stand out from the crowd, and its best to establish yourself as the leader in a niche. But it seems like a lot of marketers online seem to forget or ignore that it is that way.
Thanks for pointing out the importance of these “classics”!
.-= Renee´s last blog ..Self Improvement Books – What Are Your Favourites =-.
Hi Sean,
I can see your meaning on feeling secure enough not to be worried about refunds. You Walk The Talk by giving quality info here.
Hey Sean I love the image with the red guy on top of all the others lol,
I think using a USP is a great way to combat your competition as long as you can always to back your claims.
I really feel that it is important to deliver what you say you will & inspire trust in your customers : )
Unique Selling Proposition – now I’ll spend all night thinking about what mine might be!
But I truly think that integrity and being true to your word are right there at the top of the list…….. which is why Sean has such a successful business. People trust him and he is true to his word.
If that is the only “tip” that helps you stay ahead of the competition, you’re halfway there!
Cath
Hi Cath,
I’m still having trouble working out what my unique selling proposition is. The things I think I do well are the same areas that other people also excel in.
I don’t know if being honest and full of integrity; or offering excellence in customer service or the lowest price product is enough anymore. There are a lot of businesses that offer the same thing. So, I’m still looking for that something special.
.-= Jazz Salinger´s last blog ..Finding Your Passion =-.
A lot of us have the same talents, skills, long term goals, etc but it’s how we use them that makes our unique selling proposition. Don’t underestimate your ability just because someone else is doing the same thing. Finetune it to make yours stand out while the others are just sitting back taking it easy.
Hard work can make any mediocre skill shine and your common talent can outshine us all. I know you know this because you’re so greatly in the lead again!
.-= Sarah Butland´s last blog ..A House of Straw =-.
I agree Sarah. If the comp points score is any indication, Jazz will be very successful with her online ventures.
Jazz, those qualities you mention in the last paragraph are still requisite anyway aren’t they. Without them a USP is hardly worth having.
Like you, I am having trouble seeing how to create my USP – and I think it I in the niche aspect where I have to find that unique perspective that I can promote.
Jazz, Sarah and Peter,
You are all right. Integrity and striving for excellence are cornerstones of any Unique Selling Proposition, but they are not always followed.
Persistence is another key factor…and Jazz, Sarah and Peter….you all have that as well.
One step at a time always gets you there in the end (and I know you are all on the right track).
Jazz, your position in this competition already sets you aside from others, so that perseverance is definitely working for you.
One idea I have thought about is not to spread yourself too thin (ie: you may have heaps of passions, but find one to concentrate on initially, build your online presence, then move to the others.)
The other thing to remember is that sometimes you think you are doing something everyone else is doing, but from an outsider’s point of view, you may actually be doing it better than you think.
I also think your USP evolves with time as well and you kind of settle into a niche area that is unique for you. Opportuntity will reveal itself.
Cheers Cath
Thanks fro that reply Cath. I wish spreading myself too thinly was also a diet mechanism! LOL.
Your point about doing better than we think is probably quite true at times – and getting objective reviews could be one way to find out – although revenue showing up is probably the best indicator!
You’re absolutely right. Spreading ourselves thin means there’s no substance left to ground us in a wind storm. We always need to keep our feet on the ground even when reaching for the stars.
Our Unique Selling Proposition is often something we don’t see but that we are offering the world. I know I can count on Jazz to put forth tremendous amounts of effort and wisdom in whatever the task and would hire her in a second.
.-= Sarah Butland´s last blog ..A House of Straw =-.
Reflecting on yesterday’s webinar makes me think that our USP is also closely tied to how we choose to market – reviewing, niches or product focus – and then establishing a strong mark in one of them