Business, Business Management, Entrepreneurship, SME businesses

What is Your Selling Point?

As a business leader or entrepreneur, you are in business to make money. Since most industries are made up of different competitors, what then differentiates your business? Why should customers buy from you and not from your competitors. This is your unique value proposition or your unique selling proposition (USP).

The unique value proposition of your business can be easily defined around any of the following areas:

a)    Excellent Customer Experience: The ability to steadily create an excellent customer experience, serves as a strong value proposition. Customers keep coming back and are willing to pay even more compared to your competitors because of the experience. A great example is – It is known worldwide for its excellent customer service including 24/7 call times, 365-day return policy, free shipping and returns etc. all to give the customer a “WOW” experience.

b)    Low Pricing: Lowering your prices compared to other competitors can also serve as your unique value proposition. Certain brands like Shoprite with its tag “lowest prices you can trust” and Walmart’s “Everyday low price” have built a unique value proposition using the low pricing technique.

c)    Convenience: This type of value proposition emphasizes convenience where other competitors offer a difficult method/product in the market. Customers continually opt for your product/service because of the convenience it offers. For example, ride hailing apps like Uber, Bolt etc. offer a super convenient and affordable service to consumers when compared with the existing yellow cabs.

d)    Unique Products & Services: This value proposition strategy is driven by innovation; it clearly introduces a new or better product/service into an existing market. For instance, fintechs offer better ways to carry out financial services using technology. Savings, investments, lending etc. have been completely transformed compared to the regular services offered by traditional banks.

It is important for businesses to be able to clearly define their unique value proposition and communicate this clearly to the customer with the ultimate aim to grow revenue and increase market share.

So, what is your business or team’s unique selling point?

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