Knowing your business’s unique selling proposition is important for any small business, especially when it comes to small business marketing.

Years ago, as director of a Women’s Business Center, a client came in to tell me about her fantastic business idea. Let’s call her Nancy. As was my custom, upon first meeting a client proposing a new business, I asked one simple question: Why? Nancy looked at me like I had three heads.  She had just told me her fantastic business idea—she wanted to open a restaurant. 

Nancy: “I make great food.  My food is delicious.  That is why I am opening a restaurant.”   

Me: “Do you eat at any local restaurants?  If so, which ones?” 

Nancy (a bit agitated): “Of course, I do.  I like [fill in the blank].” 

Me: “Do they have good food?” 

Nancy: “Of course!  That is why I eat there.” 

Me: “So why are people going to choose your good food over the other good food that is available to them?” 

Nancy (a bit deflated): “I don’t know.” 

Food being “good” was not unique.  Good food was not enough of a distinction to set Nancy apart from all the competitors.  I had to educate Nancy on what a unique selling proposition (USP) means. 

{{cta('e648a635-e962-49dc-83c5-fe53062f6ec0','justifycenter')}}What is a unique selling proposition (USP)?   

In a nutshell, a USP is a differentiator.  It is the very attribute that is going to set apart your product or service from all your competitors.  Which always leads to the following statement: Know your why. 

“Know your why” does not mean, as Nancy initially thought, “I love cooking and serving people”.  “Know your why” means why people should choose your product or service.  Why should someone choose your “good food” over some other restaurant’s “good food”? 

So how do you differentiate in a world of “good food”?  Marketing is not about creating demand.  It is about meeting demand.  Study the market which you plan to target and find out what they demand or need.  What need is not being met?   This is where market research comes in handy. Market research includes studying industry trends, conducting focus groups, surveys, etc.  (But we will leave that for another post!) 

Marketing to prospects and clients/customers involves understanding the buyer’s journey.  Buyers have a wealth of information at the tips of their fingers (Thank you, Google!). Buyers research, compare, and review products and services before buying anything.  Now that buyers no longer primarily rely on companies or salespeople to educate, the buyer’s journey has begun before the buyer even reaches out to you (or knows about you). 

In order to reach your buyers, you need to understand your target market.  You need to understand what problem you can solve for them, and why you would be best the solution for them.  In order to be able to reach buyers at each stage of the buyer’s journey, you need to know your USP.   

The three stages of the buyer’s journey are: 

• Awareness Stage – Uh oh.  I have a problem that I would like to solve. For Nancy, it would look like: “My stomach is growling and I feel sluggish.” 
• Consideration Stage – I know what my problem is, and I must research options and solve my problem.  For Nancy it looks like: “I am hungry.  I need to eat.  I am going to Google what restaurants are near me.” 
• Decision Stage – I choose this solution for my problem.  For Nancy? Well she has decided upon Panera Bread.  

In order to guide buyers through the sales funnel, you need to be able to put yourself in your buyer’s shoes.  (We will talk about creating buyer personas in a later post.)  Often, entrepreneurs love their ideas so much, they cannot understand how others could not possibly fall in love with their ideas, too.  Alas, we don’t all think the same.  It is imperative to think about what your target market wants, not yourself.  (Unless, your target market is only you, in which case I don’t think you have a lucrative business idea.)  By focusing on what the buyer wants or needs you guide them through the sales funnel.   

{{cta('75e36e47-52fd-477c-9b05-532e4aab8980','justifycenter')}}You must also understand what motivates your buyers’ behavior and buying decisions.  In Nancy’s case, good food might not be enough of a motivator.  Perhaps, convenience is most important or good service.  (Lots of moms choose Chik-fil-a for these very reasons.)  Finally, research your competitors to know what buyers like and dislike.  The more well defined your USP is, the better you will be able to pull leads into your sales funnel. 

As Simon Senek, author of “Start Your Why”, says, “People don’t buy what you do; they buy why you do it.  And what you do simply proves what you believe.”  By focusing on the why, you inspire others.  Senek explains this well by comparing Dell and Apple.  Dell focused on the “What” they do, and by doing so, pigeonholed themselves into making computers.  However, Apple focused on the “why”, thereby diversifying into other products, like iPads and iPhones.  When Apple marketed the iPod as “1,000 songs in your pocket”, it gave people the why, which is the true USP. 

Remember what I wrote earlier, marketing is not about creating demand.  It is about meeting demand.   People wanted “a 1,000 songs in their pocket”.  People did not want an iPod.  They wanted what the iPod could deliver.  The USP was not the iPod and all its technical features.  The USP was “a 1,000 songs in their pocket”.