Have you ever pondered the reasons why individuals purchase your product or service from your business? How would you respond to this question? The majority of business proprietors declare that it is due to their exceptional service. However, the issue is that their competitors also provide excellent service. ‘We offer the lowest prices’ is another typical response, but it is widely known that as soon as prices are reduced, competitors will follow suit. Consequently, it is not always feasible to have the lowest price.

Therefore, if you cannot always provide the best price and offer comparable service to your competitors, what is the reason for individuals choosing to buy from your business? The rationale behind customers choosing one supplier over another is typically not due to price alone.

Customers purchase goods or services due to real or perceived differences between suppliers. Take two businesses as an example. They both provide a product or service, potentially a range of them, at a specific quality and cost, and at a certain price. Ask yourself why you would choose to buy from one supplier over another, and the answer would usually be evident. The better price, range, service, people, or quality is the deciding factor. You select one over the other because there is a perceived difference between them, which is why you do business with that supplier. The same holds true for your customers; they buy from you based on the differences they perceive between your product or service and your competitor’s product or service. These differences can be in any area: price, service, or delivery.

Furthermore, it is essential to note the term ‘perceived.’ The differences between suppliers may or may not be significant or tangible.

If your service is identical to that of your competitors, and the price is competitive, then why would potential customers select you? And how can you ensure that they do?

We offer a step-by-step process that you may use to create a unique selling proposition for your business, one that will persuade customers to choose you over your competitors. However, be aware that it takes some concerted effort to convey to people what distinguishes your business from others.

1. In order to identify the unique selling proposition of your business, it is recommended to compile a list of distinctive attributes that you believe your business possesses and is currently being promoted. Additionally, it is advised to create a list of self-promoting characteristics of your competitors, regardless of whether they are valid or not.

Upon comparing these lists, it is possible to identify similarities and biases, thus it is suggested to ask acquaintances who are familiar with your business and employees to prepare their lists. They should also provide their opinions regarding your competitors’ businesses.

If the lists created by your acquaintances resemble those prepared by yourself and your competitors, it is likely that there are minimal differences between your business and your competitors. This poses a significant problem since customers would find it challenging to differentiate between the two businesses. In such cases, customers would rely on one decisive factor, which is price.

By relying solely on price, customers could potentially become price shoppers. Consequently, if your business does not offer any distinct aspects apart from the price, you are likely to have customers who are not loyal to your business.

Even if your business is the cheapest, it will be operating on very narrow margins, and therefore will have to produce a higher volume of sales to generate a reasonable profit level.

Given that price should not be the sole unique selling proposition, it is necessary to define what sets your business apart from the competition and how to take advantage of it to achieve success.

2. To identify the reasons why customers purchase from your business, it is suggested to create a list of ten reasons and ask your employees to do the same. It is important to take the necessary time to thoroughly consider the list of reasons. If required, professional assistance can be sought from Raffrey Consulting for this exercise, as it can be challenging.

Initially, the reasons on the list may include statements such as “we offer lower prices, better service, or a superior product range,” which is acceptable. However, it is essential to make the exercise more relevant and engaging by crossing out any items that competitors could also claim about their business. In essence, it is the perception of the customer that is critical.

Even if a competitor claims to be the cheapest or offer the best quality or service, and whether or not it is valid, if the customer believes it to be true, it must be crossed out from your list. It is common for business owners to end up with very few items remaining on their list at this stage.

If items remain on the list, it is necessary to critically assess them. Seek someone else’s opinion and remove any items that are similar to your competitors.

If no items remain on the list, do not worry. However, if some do remain, this is the beginning of a distinctive uniqueness for your business.

If nothing remains on the list, it is relatively safe to assume that there is no perceivable difference between your business and your competitors’. If coupled with the absence of differences in the product, this forces customers to make a purchasing decision based solely on price. If ‘price’ is the only item left on your list, or if you have intentionally chosen ‘price,’ ask yourself if you are the cheapest in the marketplace at all times and if you want to be known as the most affordable. If the answer to both questions is yes, it is acceptable for price to be your unique selling proposition.

However, if you are not the cheapest in the marketplace or do not want to be known as the most affordable, you will require an alternative selling proposition. It is necessary to identify what truly sets you apart, so that you do not compete on price.

3. It is advisable to revisit the reasons for establishing your business. Typically, people go into business with a passion to offer something different and usually superior to their competitors and possess the necessary skills. They identify a gap in the market and aim to provide a product or service in a unique way compared to their competitors.

If this resonates with you, it is recommended to write down why you went into business. If this is difficult, answering questions such as

• Why did I go into business?
• Why did I think my business would be better than the competition?
• Why did I think it would succeed?
• How did I intend to be different in the business?

may provide clarity.

After documenting your answers, review them to determine if there is anything unique to your business, or if it could be remarkable if implemented. Would the implementation of your original ideas differentiate your business from your competitors? If so, include the essential items you have identified in your lists from the previous exercise. Remember that they must be items that set you apart or have the potential to do so.

The outcome of this exercise should include the actual differences between your business and your competitors, as well as any differences you feel are either present or should be implemented.

4. It is essential to explore what sets your product or service apart from competitors. This could be a unique process or product with features or benefits that are not advertised by competitors. Alternatively, it could be a statement about your product or service that makes it stand out in the market.

To identify what is unique, it is necessary to evaluate internal business practices, procedures, and care. Armed with this knowledge, spend time developing your Unique Selling Proposition.

To begin, create a list of everything that makes your product or service unique or special. Include all processes, systems, materials, commitments, and investments that ensure its uniqueness. Once developed, evaluate how it can be promoted in various areas of your business.

This proposition must be incorporated into:

• Advertising, including headlines and body copy;
• Sales processes, such as the appearance and communication of sales team members, sales literature, presentation materials, and scripts;
• Telephone techniques, including enquiries, teleselling, client follow-up, and customer service;
• Customer retention and after-sales programs;
• Business systems and operating procedures;
• Documentation, including the quality of information and presentation;
• Product or service, packaging and delivery.

It is vital to promote the Unique Selling Proposition in all aspects of the business to differentiate yourself from competitors and attract customers.