When we embarked on this journey of the elements of the Law of Micro, Small and Medium Enterprises-MSME Success Foundations-LMSF, we looked at firstly the absolute need for a
clear business plan-CBP.
Last week in the second place, I presented the need for strong financial management and/or other systems. Both those two matters are important and yet with them in place the absence
of a unique selling proposition-USP will soon cause closure of the business! Alternatively, USP is also short for Unique Selling Point or indeed in today’s global emphasis on value, one can refer to Unique Value Proposition as a “rough equivalent” to USP!
In other words, regardless of the size of a business venture, a compelling value proposition must exist or the enterprise shuts down no sooner than it opened!
That thing or service that actually causes customers to part away with their hard-earned money again and again to create the business topline is the business model. However, in a competitive environment there must exist in a business a unique selling proposition otherwise the customer will go away to the competition!
In today’s article therefore, the subject matter is the Unique Selling Proposition.
What is this concept of unique selling proposition?
Have you ever wondered how so many micro traders simply copy what the neighbor “tantikers” (showcasing) and do the same even without confirmation that the one they are copying is actually progressing or not? I am reminded of someone who said “abena Zambia baliba bwino problem bali temwa ukuconcluda nangu tabakwete ama facts”! Well, that approach partly explains why we have very few ‘graduates from the FISP school of GRZ input support to commercial farming’.
They all want to grow maize even without surveying or researching possible alternatives that could give them a Unique Value Proposition-UVP. Building for legacy actually requires being able to differentiate one’s business from competitors with a compelling UVP. When common products or services are plentiful at the same level of quality, the chance of a downward price war that is in fact a race to the bottom are so high that the businesses involved end up bursting! That makes the case for investing in a UVP worthwhile.
As stated earlier in this article USP and UVP are used interchangeably!
Again, a USP is a specific benefit that makes a company, product or service stand out from competitors. It’s the key reason why customers should choose one business over another.
Essentially, it’s a concise statement that highlights what makes a company uniquely valuable to its target audience.
The unpacking of the USP concept would be incomplete unless there is a conversation around:
O Differentiation: a USP is all focused on identifying what makes a business offering outstanding and different from the competition.
o Benefits focus: it’s not just about listing features but rather highlighting the meaningful benefits that customers will receive!
o Customer-centric: a strong USP should resonate with what customers want and need.
o Concise and Memorable: it should be clear and easily understood statement that can be communicated in marketing materials and interactions
o It’s not just a slogan: while a USP can be incorporated into a slogan, its more than just clever wording. It’s a core message that guides the overall brand strategy.
Examples include:
I. BBC: the World’s Radio Station (they have correspondents in almost the whole world)
II. AMAZON: “Earth’s Biggest Selection” (focus on vast product range)
In effect, a USP helps businesses attract customers by clearly communicating what makes them the best choice.
In summary, it must be said that USP is a worthwhile matter to invest time in vis a vis some thought for an MSME that is building for legacy. It is important remember so far that the Law of MSME Success Foundations-LMSF must indeed include some thought on what USP will adorn a startup or one that requires revamping.
Napita mukwai!
The Author is Partner at NS-CGMA in charge of Management Accounting.Victor PM Nyasulu, CA-Zambia, FCMA, CGMA, LLB mulenjicas@gmail.com
