What is the one compelling reason someone should use you and not your competitor? If you struggled answering that question you are putting yourself at a distinct disadvantage in your market and need to carve a ‘Niche’ for your business.
Most builders and contractors know that in order to generate the most clients, profits and sales, they must come up with their own “Unique Selling Point” (USP) and make their products or services known to their selected market. This section will show you how to come up with the most creative USP and Guarantee for your business.
Would you like to establish your name or brand and set yourself apart from the competition?
Having your own Unique Selling Point (USP) will help you set yourself apart from other businesses in your market, target your market more effectively, and create more effective marketing campaigns.
For more specifics on how we can help your business in this area, contact us direct to book in for your free “Strategy Session” with one of our expert Business Coaches. Lets talk about your business and see how we can take you to the next level.
CaseStudy:
Industry: Plumber
Challenge: Creating uniqueness or a compelling reason for your marketplace to choose you over your competitors
The Cause:
Stuart always believed the only reason his clients chose a competitor’s quote over his was price. As a result, Stuart spent a lot of his time ensuring his prices were competitive and wouldn’t come in too high. This ensured Stuart’s profits were kept to a minimum.
The business pain:
Stuart couldn’t understand why clients who knew him well would still choose to work with a ‘fly by night’ plumbing company over his, just because they came in cheaper on the quote. Stuart was running around quoting everything that came across his desk. He did big jobs, small jobs and medium jobs. Some were private jobs and others were commercial. Stuart was being all things to all people and it was costing him time, money and a lot of frustration. One day Stuart was struck with sobering realisation that the only thing he had to differentiate himself from his competitors was price. This hurt, because he knew he offered so much more, he just wasn’t saying it.
The personal pain:
Stuart had some friends who were also plumbers. One in particular was doing three or four times the revenue that Stuart’s business was doing. This was all very well but there were a few things Stuart couldn’t ignore. Firstly, his mates plumbing company started five years after his. He could remember when Craig first started out and how he had volunteered advice on getting started. That was four years ago. Last year they compared numbers over a couple of beers at the end of the financial year. Stuart was startled to find his mate’s business doing close to double the net profit percentage that he was. On top of all this, Stuart’s mate also enjoyed the privilege of an overseas trip once a year. But the thing that concerned Stuart the most was how much less his mate worked than him.
The solution:
Stuart realised something needed to change and he quickly got to work developing a compelling reason why his clients should use him as opposed to his competitors. He needed to put together the most promotable and best message possible that truthfully represented the “service” he offered. Stuart wanted to come up with something that was a true reflection of who he was and what he did.
So he set about answering the following questions to find his answer:
- List your three biggest competitors…
- What do they do well?
- What do they do poorly?
- What would the average person say about each of these competitors?
- What is ‘unique’ about them?
- What ‘guarantees’ do they have in place?
- How are these guarantees promoted?
- How ‘genuine’ are these guarantees?
- What can’t each of your competitors guarantee?
- What can they do that you can’t?
- In an ideal world, what would you like your customers to see as the main point of difference between you and your competitors?
- If there were one phrase your customers and prospects used to describe what you do now, it would be…
- Describe who the average customer is for your industry…
- Is the current market place growing or diminishing? Please explain.
- Is your typical customer different from the generic industry customer you have described?
- Describe your current average customer…
- Describe your ideal future customer…
- In what four ways do you perceive that you are genuinely different from your competitors?
- What can you do that no one else can?
- What are the five things about your product or service that you take for granted, that your customers don’t know about?
- What are three things your best customers say about you?
- What are three things your worst customers say about you?
- What are the two things that annoy your customers the most when dealing with businesses in our industry?
- What are three problems or frustrations that buying your product/service solves?
- What are the three major benefits of buying your product or service?
- What frustrations do customers experience when trying to find your product or service?
- If you were a customer, why would you dislike buying from you?
- Describe the sort of customers who dislike buying from you… and tell us why?
- Describe the sort of customers who love buying from you… and tell us why?
- If you could easily overcome any two of your customers’ frustrations, what would they be and how would you overcome them?
- What is your current written guarantee?
- How is this different from your guarantees of the past?
- How do customers react to your current guarantee?
- What three additional things will you be able to fully guarantee within the next months?
- Now take some time to complete in your own words, your own using all of the information above.
After completing the extensive list of questions Stuart eventually settled on a Unique Selling Proposition that he was happy with. He would offer his customers the following guarantee:
“We guarantee to return your call within 24hrs, show up on time and leave your place spotlessly clean or we will pay you.”
The Outcome:
Stuart’s guarantee put him in a position to compete for higher-margin jobs and gave his customers the compelling reason they needed to use him over his competitors. Stuart soon found himself in a position where he could be more selective with the type of jobs and the customers he worked with. His business finally had an identity and soon developed a solid reputation in his chosen target market.
For more specifics on how we can help your business in this area, contact us direct to book in for your free “Strategy Session” with one of our expert Business Coaches. Lets talk about your business and see how we can take you to the next level.
