How To Identify Your Unique Selling Point
Differentiation enables a company to achieve a competitive advantage, however, many companies make the mistake of declaring their unique differentiator without ever gathering any competitive or market intel. Very often, what a company thinks is unique or different, in reality, really isn’t. Some companies state their unique differentiator as something simple such as quality or speed, but frankly, anyone can claim they are quick or have high quality products or services—that may not make you stand out as different or unique. So how do you create a unique differentiator that is so appealing, your customers will be willing to pay you a premium for your products or services and leave your competitors envious? Here are three ways:- Evaluate the Benefits you Offer…
- Research Your Competition…
- Identify Customer Pain Points…
Competitive Advantage vs. Unique Differentiators
By definition, a competitive advantage is what sets a company apart from its competitors; it’s a leveraged key strength. These advantages typically allow a company to achieve and maintain greater margins, better growth opportunities, and stronger customer loyalty.
It can also be what your prospects use as part of the evaluation criteria when contemplating a purchase from you. But is your competitive advantage enough to keep the customers coming?
The Differences Between a Competitive Advantage and a Unique Differentiator
Competitive advantages generate extra value because of the specific strengths or factors they deliver. The more the competitive advantage is sustained, the more difficult it is for competitors to counteract it. However, if you hold a competitive advantage, a competitor could come along at some point and match or “one-up” you, causing a shift in balance or positioning.
One way to gain a further advantage over competitors is by differentiating your product or service from theirs in a unique way. Many interpret the word “unique” to mean “being the only one.” However, there’s another definition — “the ability to be distinguished from all others of its class or type.”
Essentially, a unique differentiator is something that would be impossible, difficult, or extremely expensive for your competitors to replicate or imitate. It’s a characteristic that separates you from key competitors and gives you a perceived advantage in the eyes of your target audience and customers.
For it to succeed, your unique differentiator needs to meet three criteria.
- It must be true …
You can’t make it up.
- You have to be able to prove it…
If you can’t demonstrate it, it won’t be believed.
- It has to be something your customers and targets want …
Something that will benefit them in some way that they aren’t receiving already.
Imagine if your product or service had unique features or benefits that are so appealing, your customers choose you over your competition and are willing to pay you a premium price. Companies that are proactive in gathering insight can create this outcome.
Your Unique Differentiator Must Benefit Your Customers
A unique differentiator enables a company to achieve a competitive advantage over other companies offering similar products or services. Many companies make the mistake of declaring their unique differentiator without ever gathering any competitive or market intel.
Utilize Customer and Market Insights to Drive Your Differentiation Strategy
Many organizations fail to differentiate themselves successfully because they believe differentiation is about them when, in fact, it is all about their customer. A business can be as different as it wants, but if it’s unable to connect the dots on why that difference makes an impact on their customer’s business or operations, the value will not be perceived.
Without conducting research and understanding who your customer or target is and what their needs and challenges are, you are simply assuming and taking a risk that your unique differentiator will be meaningful and beneficial to them, that it will be a driver of growth for your organization and that it will crush your competition. This may not be true.
Your unique differentiator needs to be customer-centric which means it’s critical to put the customer at the center of the research process. Doing so will help you identify what your customer’s main challenges are and how you can uniquely solve their problem. By connecting this value to your customer or target’s challenges, your unique differentiator will become crystal clear. This is what helps differentiate your brand as the best provider of your products or services.
Find out what bottlenecks, obstacles, pain points or challenges your customers face and identify a cure that will have a major impact. By doing so, you’ll not only differentiate yourself, you’ll break barriers in your industry, drive innovation and position your company as a leader, launching you ahead of your competition for the foreseeable future.
It’s often difficult for customers to sort through the various claims made by companies to determine what actually makes one company different or better than the other. By conducting customer-centric research and concentrating on your solution to uniquely solve those identified pain points and challenges, the attention shifts to a value-based solution and helps to shape the criteria by which customers select a vendor. Things like price and competition become less of an important criteria, and if done right, solely positions you as the vendor of choice.
Customers typically don’t get excited about their purchases; they do however get excited about how it will make their lives better. This becomes the motivation behind each purchase a customer makes.
Your unique differentiator should be so compelling that your customer or target wants to buy from you on the strength of your differentiator alone!
Consider these Customer Acceleration tips that will help you make more money from your customers and make them happier in the process!
If you’d like some help with it, please reach out at (216-876-1165) we are happy to help you get started.
