Tag Archives: business

Unique Selling Proposition (USP)- Why Am I Going To Use You Instead Of Your Competitor?

USP POD WIIFM
How your POD will influence your USP for your customers WIIFM- http://www.damienfoley.wordpress.com

So you have a great business selling widgets. Now you are about to go and market your business to bring in clients. But why are people going to buy your widgets over your other competitors widgets?

This is where you need to be clear on what your unique selling proposition/point (USP) is. A USP is what makes you different from your competitors. This consists of your point of difference (POD). To do this you really need to know the product you are selling and how it meets your customers need, want or desire. This may mean you need to reassess what your actual product is. It could mean you need to refine your product. For example, you may be an accountant. But you may need to specialise in tax advice to Doctors. Or you may need to expand your product. For example, you may need to not only provide a web design business, but also provide graphic design, copy writing, SEO, Database design etc.

WIIFM

WIIFM- Whats In It For Me. This is what you are trying to answer in your USP to your customer. How are you going to solve their problem? Do they even know they have a problem? As part of your marketing, such as your elevator pitch, you may actually need to identify the problem your customers might have and how you solve it. For business, typically the WIIFM is “how are you going to add value to their business?” For customers, it is generally “how are you going to make them feel?”

Price

Now you might say “Well my widgets are cheaper”.

Well, if I buy a widget once a year and your widget is $1 and your competitor is $1.20, do I really care, for the sake of twenty cents, that you are cheaper? No.

What if your widget is $1,000 and your competitor is  $1,200? Yes, for $200 I might want to buy your widget. But what if it takes you one week to deliver my widget and your competitor delivers overnight? If I need the widget for my business that costs me $1,000 every day I don’t have the widget, is being $200 cheaper important? No.

Price alone isn’t always a unique selling proposition.

Technical Jargon

A big problem many business owners have when they explain their USP, is they use technical jargon. Remember- WIIFM above and KISS- Keep It Simple Stupid. I don’t care if your widget is made of high tensile polycarbonate. I don’t know what that is. But if you tell me it will last 5 times as long as an ordinary widget which will save my business money in down time for maintenance, or saves me time by only having to replace it once a year instead of every 2 months, now I know what you are saying!

Examples of POD’s for your USP’s

Remember, you need to provide a strong enough reason for someone to purchase your product over a competitors. List your POD’s from strongest to weakest.

  • Value- Reduce costs, increases revenue; adds value.
  • Emotions- Sell the emotion. Makes them feel good/happy; reduces stress; removes fears or concerns; people we love/care for such as family; creates attention/importance; feeling of acceptance/part of a group/ smart/  etc.
  • Time- delivery time; down time; response time; productivity; impulse buy; availability etc.
  • Quality- improved performance; reduced repeat maintenance; reduced down time; warranty or guarantee; assurance etc.
  • Legislation- meets or exceeds compliance standards; improves safety; enhances compliance or reduces legal risk; etc.
  • Social Responsibility- Community benefits; worthy cause; gives to others- school children; homeless; less fortunate; third world people; those affected by natural disasters; etc.
  • Environmental- environmentally friendly; green energy; carbon neutral; recycled/recyclable; reduces or eliminates environmental problem; etc
  • Status- Latest model; exclusivity; price etc. This is a part of emotions.
  • Add Ons- secondary features as a cars digital radio with blue tooth connectivity; Smart Phone with built in camera; bonus or discounted products as free delivery or a second one half price.

USP Examples

Different customers are going to have different needs- WIIFM, meaning you will need to identify the USP that applies to them.

IT Consultant- “We back up your files every 2 hours on local cloud servers offsite. Meaning if your computer files become corrupt, we can restore all your files within 4 hours, reducing your down time which makes you money.”

Green Grocer- “We support local farmers by buying local organic produce. This also reduces our carbon footprint from paddock to plate. Meaning you’re supporting local farmers and your family are eating healthy fresh fruit and vegetables.”

Accountant- “We specialise in medical professionals, meaning we provide you the best tax advice as a Doctor. This assures you pay only as much tax as you have to and minimises the risk of an audit.”

Cafe- “By using our app, you can order your coffee even before reaching our shop, saving time queing in line. By using our Coffee On The Go app, you also earn reward points towards your free coffee. You will also feel good knowing the coffee you’re drinking is made from coffee beans certified by the World Amnesty Against Child Labour.”

~ Damien Foley

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How To Create Your “What Do You Do?” Elevator Pitch

So what is an Elevator Pitch? Well, an Elevator Pitch is essentially your response to the age old question asked of “What do you do?” An Elevator Pitch should answer this question in a few sentences in less than a minute or two with the purpose of 1. Informing them about what you do exactly; 2. Wanting them to know more; 3. Getting potential sales leads or follow ups.

There are three different Elevator Pitches I am going to introduce you to. All of them are very simple. From these, with practice, you can then develop your own unique elevator pitch. Remember that as part of your elevator pitch, you should be introducing your Unique Selling Proposition (USP), to differentiate your business from your competitors.

Slogan or Tag Line Pitch

Geddes/Getty Pitch

Why- How- What Pitch

Mix and Match Pitch

Remember- Practice Makes Perfect

Try each of your pitches as much as possible. Use as many networking events as possible to practice each of your pitches to see what works and what doesn’t. Don’t be afraid to experiment and change your pitch. Identify what catches the interest of people and what doesn’t. What makes them want to know more? Soon, you will have your elevator pitch down and it will confidently roll off your tongue as second nature when you are asked “What do you do?”

~ Damien Foley

Brisbane Lord Mayors Economic Development Business Forum- Building an Online Presence

I am in the process of having a provisional patent done for a phone app idea I have. So this was a great event to attend to find out more about why business should have an online presence in our global online economy and what is being done in Brisbane to promote our IT innovations.

George Fidler, General Manager of Kixeye, gave his experience as a start up IT business. What I took away from George is that you have to persist. You learn more from your mistakes then you do from your successes. And as a result your mistakes make your business stronger. I agree, if you are going to make mistakes, make them early in your business life and make plenty of them. If you don’t make mistakes, then you aren’t pushing your limits! George also made reference to the book “Lean Start Up”. In talking to George after the presentation, he again gave me the advice to read this book (or listen as an audio!) for my future phone app project. He also gave me the advice to find a programmer to work on my project referencing the IT incubator, River City Labs, as a starting point.

Bob Dunne, Principal at Strateneering, gave his story of how he started capitalrater.com. He initially started with a local focus of Sydney and Brisbane but quickly expanded it to be a global provider. He doesn’t understand why anyone in business isn’t online and looking beyond their local geographical boundary. Business is made easier with the internet! I asked Bob on his advice on putting together a start up IT team and who he would bring on. He said he would bring in people he already knew, who complimented his own skills and had the ability to go into a start up business.

Kieran O’Hea, Brisbane’s Chief Digital Officer gave an interesting, but rushed, presentation on both the digital economy and Brisbane’s role in this. For Example, over 66% of people in Australia have a smart phone and use its additional features. 41% of phone users over 50 have a smart phone. Hopefully the organisers will send out his slide presentation!

At this event I met some other interesting people

Jim is the Development Executive at Scan Conversion Services. He assists organisations to convert their paper documents to an electronic document on mass. Handy if you have documents that need to be stored in electronic format.

Jeanette is a Business Development Manager from Commonwealth Bank. It was good to meet Jeanette as I want to find out more about her role on the Not For Profit Working Committee of the Institute of Chartered Accountants Australia (ICAA). Foley Business Management is a service provider to the NFP or Social Enterprise sector.

Clinton is a Patent and Trade Marks Attorney for Cullens. Clinton was incredibly helpful discussing the benefits of having a patent for IT ideas you are wanting to take to concept and then taking it to a full patent. Clinton is someone I will likely be wanting to talk to when I develop a working concept of my phone app.

To find out what other events I will be attending in the future go to my Where I Will Be page.

~ Damien Foley