Create a strong USP

Paul Hague, director at B2B International, explores how to create a winning USP for your brand

A unique selling point (USP) is the one thing that signifies your business offer, forms the foundation of a strong brand and differentiates you from your competitors. In B2B markets, most firms are aware of the importance of having a compelling USP, but according to our research, many British B2B companies struggle to define one.

A recent survey carried out by B2B International of big UK businesses – with an average turnover of £1.9bn – highlighted that large British firms only give themselves an overall score of 6.5 out of 10 on average when rating the strength of their USP. This is troubling news given that a strong USP is critical amongst overcrowded markets in particular. If your prospective customers cannot pinpoint what is distinctive about your business, they are less likely to choose you over alternative suppliers.

It’s clear that UK businesses operating in B2B markets need a helping hand. Here are five steps that firms can put in place to help develop a winning USP:

  1. Clarify what the market wants

The first step is to decipher the key purchasing drivers of potential customers and what they value above all else. Many businesses’ first thought is price, but according to our research just 20 per cent of any B2B market prioritises price over all other factors, which means that the vast majority are ‘value buyers’.

These customers are becoming increasingly more discerning, focusing on elevated needs such as service, product quality, brand and consultancy rather than price. This is a great opportunity for brands to look internally and formulate their USPs around the longer term benefits their product or service offers, then modify their communications to align with customer demands.

  1. Use segmentation to find a specific target audience

To avoid the scattergun approach, brands must then identify the audience they can satisfy the most so their USP can be tailored further. In order to find this group, more in-depth customer segmentation research is required.

When it comes to implementing this process, it’s typical for many B2B firms to start by looking at the most basic groupings of customers, for instance according to company size, geographical location or revenue. While insights can be gleaned from this approach, in many markets the needs of businesses will often crossover to the extent that it’s not enough to segment them by simple firmographic characteristics.

To find the key target audience, segmentation should be used to focus in on customer needs in more granular detail. By honing in on precise requirements, a business can achieve long-term benefits in terms of profits and customer loyalty as customers that get exactly what they want tend not to look elsewhere.

  1. Profile your competitors

Competitor positioning is just as integral as customer research when it comes to developing a strong USP. By conducting comprehensive competitor analysis, a business can understand the position of its brand within the market and identify gaps it can exploit, enabling it to strengthen the features and benefits that make its offering unique. It’s important to bear in mind that the intelligent creation of a USP is only possible when a business understands its own strengths and weaknesses, as well as those of its competitors within the wider market.

  1. Be memorable by being succinct

A USP is one of a company’s biggest assets, so a business needs it to be both concise and memorable in order that it can be communicated effectively. The best USPs are those that can be expressed in a single sentence, or even better, in just a phrase. If a business claims multiple benefits, its message can become confused, making it hard for an audience to remember or understand it.

  1. Emphasise the USP in every part of business

A USP is ultimately a business’ heartbeat. It should be deeply rooted into all aspects of a company. This means it must be embedded across marketing activity, sales and customer support services and not just in terms of the product or service. To be considered a part of the company’s identity, it must not be treated as a one-off marketing campaign or it will never be strong enough to stand out.

In conclusion, for a business to derive a successful USP it is essential to thoroughly research the market and fully understand its customer base. While in-depth research plays an important role in this, firms must act on the information extracted to create a USP that’s distinctive and memorable before success can really be achieved.

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