Competitive Analysis The Secret to Creating a USP that Sets You Apart from the Competition

Competitive Analysis - The Secret to Creating a USP that Sets You Apart from the Competition

If you’ve studied marketing at all, chances are you’ve run across the phrase Unique Selling Proposition, or USP. That’s because having a strong USP is critical to marketing your business effectively.

You see, your USP is what sets you apart from the competition.

It’s the reason why—all other things being equal—someone would choose to do business with you instead of the guy down the street. It is also the reason someone should buy your product or service over anyone else’s.

If you can’t tell your prospects why what you offer is different—or better—than the competition, they have no reason to buy from you other than price. And price is not a good differentiating factor. Because, thanks to the Internet, there is almost always someone out there who is cheaper than you.

Unfortunately, a lot of entrepreneurs don’t understand what makes a USP effective. So they end up focusing on a “USP” that isn’t really unique at all.

Let me give you an example…

I have a client who’s a chiropractor.  With six other chiropractic clinics within a two-mile radius, he really needs something to differentiate him from the doctor literally down the street.

So I scheduled a brainstorming meeting with my client and his staff to talk about what they provide that might be both different, and valuable, to his target market.

Throughout the meeting, everyone kept throwing out features like:

• Convenient hours
• In-house X-Ray machine
• Relaxed, kid-friendly atmosphere
• Treatments for infants through elderly
• Payment plans
• Emergencies seen same-day
• The staff has a pleasant, upbeat energy
• The doctor has 12 years of experience
• On-site massage therapist
• They use special exercises to strengthen and loosen your spine before adjustments

Of course, my client was positive that convenience and experience were what made him unique and worth choosing over his competition. And at first glance, it seems like could be true.

Except for one problem…

Nothing on the list was any different from what the other chiropractors were already doing and marketing. He was simply not going to stand out from the competition.

How do I know? Because I spent an hour doing a very simple competitive analysis.

I called all the other clinics in the area with a short list of questions, and took a quick look at their Websites and Yellow Pages ads. Then I compiled all the information into a basic spreadsheet.

The result?

At a glance I could tell that every single thing my client was so sure made him different, didn’t. In fact, every chiropractor I talked to offered, and advertised, the exact same services and conveniences.

What would have happened if I hadn't taken the time to survey of the competition? We would have wasted a ton of time and money on marketing that was not going to make his practice stand out from the crowd.

The bottom line is; a competitive analysis is one of the most valuable tools you can use to come up with a USP that drives effective marketing. After all, you can’t be sure what you offer is unique unless you know what everyone else is offering.

You can use this technique to discover all kinds of information that can have a tremendous impact on your marketing—and your success.

How do you do your own competitive analysis?

1. Start by creating a spreadsheet for all your data either on paper or in Excel.
2. Down the left side put the names of your competitors. If you don’t know who your competition is, do a quick search online and in your phone book.
3. Label the columns across the top with all the things you think might be part of your USP, plus columns to list their products and/or services, hours, location, specialties, guarantees, specialoffers, experience or expertise, and USP (if you can tell what it is).  
4. Visit the competition’s Websites, pick up the phone and call them with a few questions, and look at any advertising and marketing materials you can get your grubby little mitts on.

By the time you finish filling in your spreadsheet you should be able to tell at a glance what makes you different. Once you know your USP, be sure to communicate it in every piece of marketing or advertising you do. Soon you’ll become known for what makes you unique, and people will be dying to get what only you can give them.