Guest post by Innovate UK
Everyone knows how important a clear USP is. It’s fundamental to the success of your startup. But how do you actually define what differentiates you from the rest of the market? It’s not always as simple as it sounds. Here are four essential tips from Innovate UK to help define, communicate and utilise your unique selling point.
Find your Target
Who is your product actually aimed at? If you’re saying something along the lines of “the 18-25 age group” then you’re not focused enough. Delve into the fine details of your target audience’s lifestyle. You should be able to explain their latest trends, views, buying habits and personal beliefs – extra points if you know what they had for breakfast! Once you’ve got a tight grasp of your demographic, you can begin to understand why they would pick you over the competition. You can’t make your brand the only logical choice when you don’t understand the logic behind your consumer’s decisions.
Solve a Problem
Okay, so if your concept is to entertain people, there’s no need to solve a problem. Anything else and you need to offer genuine value to your customers. If you don’t offer a resolution or improve someone’s life somehow, you’re not likely to get much consumer interest. We’d also recommend studying the problem that you’re attempting to resolve – be sure that it’s actually a genuine issue.
Startups are renowned for finding solutions to complications which don’t exist. If you head down this route, you’ll waste a lot of time and money.
Demonstrate your Benefits
You need to understand why a customer buys your product/service. Take an in-depth look at all the benefits of your company. Note which of these benefits are targeted directly at your customer. Then understand which of these are leading the way for customer conversion. When you’ve found the reason why customers pick you over the competition, you’ve found your key USP.
Validating your idea through the acquisition of early adopters is a huge boost to your business. If you can get paying customers from day one, you’re proving there’s a demand. Once you’ve established a demand, investors begin to take interest. Don’t forget, the most common cause of startup failure is a lack of money. If you can start making income immediately, you’ve got a high chance of success.
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