using competitive research to create your unique selling proposition (USP)

Conducting Competitive Analysis to Identify Your Unique Selling Proposition

Lots of marketing gurus will tell you that it's important to differentiate your business from the competition, but do you know why?

Let me ask you this. What do you think your potential customers will use to compare you to the competition if you haven’t taken steps to make yourself stand out?

It’s one of the biggest mistakes I see businesses make.

If you don’t give them any other yardstick to use, your potential customers will default to comparing you based on price.

You are literally creating a legion of price shoppers who don't value your quality or expertise, always want the best deal, and will jump ship the moment someone else undercuts you.

You don’t ever want to be in that position and you don’t need to be. In this post, I’m going to show you how you can use competitive research to help identify your business's unique selling proposition (USP).

7 Steps to Use Competitive Research to Create a USP

1. Identify Your Competitors

Sounds obvious but start by listing direct and indirect competitors. Use tools like Google, industry reports, and social media to gather a comprehensive competitor landscape.
 To really get at this, you need to know the precise problem your clients are trying to solve. When you get clear on that, you may find some non-obvious solutions (competition) comes to mind.

2. Analyze Their Offerings

Once you have your list examine the products, services, pricing, and quality of your competitors. Look for patterns in their offerings and identify gaps your business could fill.

3. Assess Their Marketing Strategies

Study their website, social media presence, content marketing efforts, and SEO strategies. Understanding their approach to customer engagement can offer insights into market expectations and areas for differentiation.

4. Gather Customer Feedback

Customer reviews and feedback on your competitors can provide valuable insights into what customers value and what they feel is missing. This information can guide the development of your USP.

5. Monitor Market Trends

Keep an eye on industry trends and how your competitors are adapting to these trends. This will help you anticipate market shifts and align your USP accordingly.

6. Evaluate Their Strengths and Weaknesses

Use a SWOT analysis to objectively evaluate the strengths, weaknesses, opportunities, and threats of your competitors. This will help position your USP to leverage their weaknesses and your strengths.

7. Test Your Findings

Validate your competitive analysis by testing your conclusions with market research, surveys, or A/B testing to ensure your identified USP resonates with your target audience.
 Even test drive it with some of your current ideal clients and see if it resonates.

How a Fractional CMO Adds Deeper Value

A fractional Chief Marketing Officer (CMO) can significantly enhance this process with expertise in market analysis, strategy development, and execution. My expertise lies in crafting strategies that identify and capitalize on your USP, ensuring your marketing efforts are effective and efficient. Book a free strategy session, and let's talk about your business.