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To capture a larger market share and be viable, sustainable and profitable, you absolutely need to differentiate or distinguish your business, products and/or services from your competitors. In other words, you need to make your business special in the eyes of your customers and prospects.

You can do this by creating what’s called a “Unique Selling Proposition” (USP) and then effectively conveying that USP to your target market via your marketing efforts and business performance. It’s particularly crucial if you’re operating in a highly competitive market.

Your USP is a concise statement about the advantages you bring to your customers that differentiate you from your competitors. It’s also the focal point around which the success and profitability of your business is built, so you must be able to state it and fulfill it effectively.

In terms of developing your USP, start your process by asking some key questions: “What’s the one thing that makes your business unique and distinct?” “Why should people buy from you and not from your competitors?” “Do you promise great value, benefits or service?”

A USP should be stated in terms of the benefit, or benefits, you deliver to your customers. It may be a broad range of product selection, superior customer service, highest quality, best prices, etc.

When formulating and implementing your USP, it’s worth considering the following components:

• Your USP must be truly unique.
• It must be strong enough to excite your target market and get them talking about it.
• It shouldn’t be easily imitated or copied.
• It has to be credible—Anybody can claim that they provide the best service in town (“We’re The Number One Service Provider In America”). But that can be an empty promise because you can’t measure it, you can’t be held accountable and people can easily see through it. A USP like this can in fact harm your business instead of helping it.

As you formulate your USP, with the considerations above in mind, the following questions, taken from “Your Unique Selling Proposition” at the Business Owner’s Toolkit, can aid in your direction:

• What is unique about your business or brand vs. direct competitors? You’ll probably find a whole list of things that set you apart; the next questions will help you decide which of these to focus on.
• Which of these factors are most important to the buyers and end users of your business or brand?
• Which of these factors are not easily imitated by competitors?
• Which of these factors can be easily communicated and understood by buyers or end users?
• Can you construct a memorable message (USP) of these unique, meaningful qualities about your business or brand?
• Finally, how will you communicate this message (USP) to buyers and end users? Marketing tools to communicate USPs include media advertising, promotion programs (e.g., direct mail), packaging, and sales personnel.

Look at DHL’s own USP, for example: Guaranteed, on-time delivery. Depending on the circumstances and limitations involved, DHL will provide either a refund or credit of a customer’s transportation charges in the unlikely event of a missed delivery. Simple and direct, the USP’s power lies in the fact that you can actually measure it and hold DHL accountable.

The fact is that if you’re unique, you’re almost guaranteed to outperform and outdistance your competition. It’s also a fact that a “me too” business will eventually lose customers to more unique ones. The days where businesses compete on price and service alone is no longer effective because potential customers can likely get what you have to offer much cheaper and with a better service somewhere else. What you really need is to be different and unique in order to outperform your competitors. A good USP—one that’s clear and defines exactly what advantages your customers can expect from doing business with you—can drive your marketing efforts and have a profound impact on your operations.

Special thanks to Larry Lim, founder of online marketing firm, MarketingSphere.