Tuesday, August 19, 2008

What Makes You Different? Hone Your Unique Selling Proposition (USP) or Perish

My office sells mortgages. It's not very exciting, and there are a ton of other loan officers around the country who we have to compete with. So, what do we do to be successful?

Success comes from marketing your product and service much better than your competition. Set yourself apart through your Unique Selling Proposition (USP). In our case, it's not just about selling mortgages - instead, provide a specialized loan product within the mortgage industry to insure that you can provide a service that none of your competitors can provide.

Be unique. In the mortgage industry, most of the competition will try to survive by selling low interest rates and fees. Good luck to them. Unfortunately for them, though, they don't stand out among the crowds of other loan officers who are offering the same exact thing.

Specifically, in the example of a mortgage office, you could provide a niche product such as an owner builder construction loan. Owner builders are individuals who want to build a home without a licensed general contractor. As you can imagine, this specialty product sets you apart from the standard mortgage. Simply providing construction loans is a niche within the mortgage industry. But, owner builder construction loans are an even better niche. Eliminate 99.999% of your competition by working within a very specific niche.

Then, within that specific niche, set up your USP by offering services that none of your competitors will offer. Be unique in your overall industry. And, be unique even within your niche.

But, it doesn't matter if you are selling owner builder construction loans or if you are selling pizza. You need a strong USP to help you stand out.

Two years ago, we hosted a room full of loan officers at a mortgage marketing boot camp. During that weekend I got to talk to a lot of interesting people and hear a lot about their businesses.

Something I like to do when I'm at an event like this is conduct my own "undercover market research" - which means I ask a lot of people the same question to see what the most common answers are.

One question I asked often was, "What makes YOU different from your competition?"

Or, using proper marketing mumbo jumbo, "What's your Unique Selling Proposition?"

Here were the most common answers I got:

1. "I am new to the business so I haven't got one [a USP] yet."

How can you start in any business and not have a USP? Seriously, before you even start developing or selling a product line, or building your website, or writing a single advertisement, you must be able to clearly articulate what the heck makes you different from your competition!

Having the owner builder construction loan niche is essential to my office's long term success. Having a niche in your industry will be just as essential to you.

Look around at who is doing well out there. I am willing to bet you they all have some kind of niche they work in.

2. "I have the lowest prices!" - or - "I have the best service!"

Let me blunt: neither of those USPs work.

After a number of people at the boot camp told me their USP was about price or quality, those very same people told me they wouldn't believe other loan officers who claimed those USPs! Do you think your prospects believe you?

The fact is you don't have the lowest rates or the best service. The fact is that anyone can under price you in two seconds flat if they are willing to work for nothing.

The fact is that the "best service" is a very subjective thing, and anyone can claim to have the best.

Trying to compete on rates alone immediately establishes your product or service as a commodity - something that is meant to be shopped. You'll quote your rate and the customer will immediately hang up in order to call the next guy in the phone book to get his lowest price. Then, if you are lucky, he will call you back and get you to cut some more.

Lowest rates or best service is not a USP.

If you want to be really successful, you need to stand out from the crowd by offering a USP that's truly different... something your competition just can't claim. Become the expert at a niche for your market.

Then, price shoppers go away. Rate cutting goes away. And what you are left with is a line of people seeking you out.

So, step one: get a niche.

Step two: get a real USP!

There are plenty of niches to choose from. Then, you must let the world know what makes you different from your competitors -- in ten words or less. Being an expert in a niche and having a strong USP gives your customers a powerful, compelling reason to do business with you.

That is exactly why you should want to be different!


About the Author

Chris Esposito provides owner-builder construction financing nationwide through his Owner Builder 101 program. Visit www.OwnerBuilder101.com to get all the information you need to be a successful owner-builder, saving tens of thousands on your next home. Or call Owner Builder 101 at (877) 876-3688.


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Why Do Direct Marketing?

A business will never work out if marketing will not be included in your prospect. It is just too tough to go on with the flow of the business without employing direct marketing. Not all trades flourish because costumers come to you.

There are times when you will be the one to go after these customers. Now if you are dead serious with earning profit and making your commerce work out, you will be geared towards direct marketing.

It is important that you gather your leads and once you did this, ensure that you keep them in close touch. One form of direct marketing is via direct mail.

You can encourage prospect customers to avail of your service or your goods by mailing to them directly. If you are successful in convincing them then you can be rest assured that your trade will work out well.

Honestly, your earnings largely depend on the effort you concert. Through direct marketing, you can tell your potential customers what's in store for you.

Give them news regarding what are your new services or products which they may avail of. You may likewise offer them good deals so they can be more attracted to your offer. You may wave right into their faces the possibilities of great discounts, promotions, and other freebies. Direct marketing is nonetheless your avenue of letting your customer become aware of what you can offer them.

Direct marketing may take the forms of email or snail mail. However, as per efficiency is concerned, the snail mail works the better. Due to the outbreak of the spam messages, your email can just merge with them. Or potential customers may think that yours is just another spam email. There are times when the customer may miss the chance of checking his or her email so you lessen the opportunity of counting him into your leads.

As with the snail mail as form of direct marketing, the potential customer's attention will likely be piqued as he sees the letter from you. Email may be cheaper yet it is ineffective at times.

Through mailing as a form of direct marketing, you need to secure the exact postal address of the customer. As soon as you receive responses from that customer, remember not to tire out or bore him or her by sending out numerous forms to be filled out. He or she may not have enough time to deal with this and you risk losing them from your care.

You have to work out that your information gathering scheme must become a pleasurable experience rather than a chore assigned to him or her. Always top your mails with the promotional strategies regarding your business. After all, it is your primary goal. Highlight freebies and other wonderful opportunities that will prompt the reader to give you back a nice response. It is likewise a NO NO to ask very personal questions.

It is important that you make use of a friendly tone as you converse in your letter. You must not sound bossy or else you will not win the customer. Go for repetition.

Sending out only one mail may not prove successful. There are cases when the helpers misplace the mail so the supposed to be recipient fails to recognize the letter. Likewise, always request for return responses either through phone or mail. It pays off to include some free items in the envelope as this will trigger further interest from the customers.

Direct marketing has been proven effective through all ages. Much more, today's modern era calls for a strict direct marketing stratagem for you to be able to keep in touch with the businesses' fast paces.


About the Author

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