Two key qualities characterize the environment in which modern businesses operate. One of these is the high level of competitiveness across most markets, and the other is the need to stand out from other companies in order to achieve success.
To create touchpoints that make a standout position, businesses work diligently to create their unique selling proposal. In this article, we will reveal the basics of unique selling propositions and provide valuable tips that may help you formulate your own selling strategy.
What Is a Unique Selling Proposition?
The unique selling proposition, also known as the USP, is what sets your business apart from all the other businesses on the market.
Providing unique value, such as a service that only your business offers, can be crucial in helping the customer connect with your business at a deeper level.
By defining a clear USP and marketing to the customers with that USP in mind, your business becomes the ice cream shop that sells the one delicious flavor that no other ‘ice cream shop’ offers.
Key Takeaways
A unique product or service can help you create a miniature monopoly on the market, especially when it is effectively communicated through a USP;
Your unique selling proposition should be original and impervious to those who may try to copy it;
Cultural and technological changes can make a USP obsolete;
Market research is one of the most critical components when creating a USP.
How to Define the Unique Selling Proposition?
When defining the USP, a company will go through a checklist of items that help to ensure that the proposition will be compelling.
Here are a few examples of important items that make a persuasive statement.
1. Customer motivations
An effective USP considers the motivations of the customer. Knowing what inspires your target audience when picking a product or service is vital to creating a good USP.
Consider the priorities of your potential customers and whether their primary motivator is convenience, price, or something else entirely.
2. Business slogan
The USP is more than a slogan. Although a tagline is a good way to communicate your USP, the intended message behind the catchphrase truly sets your business apart.
Additionally, your company’s main message should be the meaning behind the slogan and the standard set throughout all interactions between the customer and your business. These include checkout, your return policy, your customer support, additional services, and other benefits.
3. Originality
For some, it may go without saying, but this is an important point to remember. The USP of your business must be original.
This does not only mean that you should avoid copying other businesses’ USPs. It also points toward the responsibility you have to analyze the USPs of other companies and make sure yours is truly unique.
Adapt to the environment in which your enterprise operates by creating a unique offer that cannot be found anywhere else!
Why Is a Unique Selling Proposition Important?
A well-defined and strong USP is an essential asset in differentiating your business from others on the market, but it also brings several other benefits.
1. Easy to remember
A good USP will help shape your marketing goals and remain memorable in the minds of your customers.
On top of its importance for differentiating the business, your USP can help customers find it easier to recall the brand identity, the product, and the message behind it. If you’ve done your homework and this is a message that the customers identify with on a personal level, you’ve just succeeded.
2. The shelf life of an USP
It is a common practice to base a proposition on a specific benefit your business brings to the potential customer. While there is nothing inherently wrong with this tactic, you should be mindful of the shelf life of your USP.
Choosing the wrong message, which is subject to cultural or technological change, can quickly make your USP irrelevant.
While you may benefit from a certain USP in the short term, consider the changes that could come soon. Make sure those are independent of how the public perceives your USP.
Benefits
- Clear differentiation from competitors
- Improved brand recognition and recall
- Enhanced customer connection and loyalty
- Effective in guiding marketing and messaging
- Higher potential for customer engagement and conversions
Challenges
- Requires thorough research and analysis
- Crafting a compelling and original USP can be challenging
- Adaptability needed to respond to changing market dynamics
- May need periodic updates to remain relevant
- Overemphasis on USP might overshadow other aspects of the business
What Are The Best Unique Selling Proposition Strategies?
Now that we have a good idea of a USP let’s look at a couple of the best strategies to help achieve your marketing goals. The main objectives of most USP strategies are outshining the competition and winning over their customers.
1. Outpace the competition
Researching your competition is one of the most important elements of creating your USP. By clearly understanding what your competitors offer and how they communicate their selling propositions, you may see holes that your USP can fill.
2. Keep it relevant
A good USP is focused and relevant to the customer. It is not a long-winded explanation of all the advantages your business offers compared to everyone else.
By keeping your USP short and to the point, your brand will be remembered, and the customers will appreciate your direct and honest message.
Additional Tips & Tricks
- Make more than one USP. When deciding which one to go with, use the input of the types of people you consider as potential buyer persona. Testing your USP beforehand can save you a bunch of money and time;
- “Expect More. Pay Less” is considered to be one of the best USPs thanks to the highly relatable core values that it communicates;
- Use your unique selling point as the main impetus for your marketing efforts – content marketing, lead generation, and social media marketing.
Unique Selling Proposition FAQs
After brainstorming several ideas, it is often wise to listen to input from outsiders such as your colleagues. Additionally, think about both the strengths and weaknesses of your brand or business and how each USP makes the brand appear to the public.
It is important to put yourself in your customers’ shoes as often as possible. Think not only about the benefits your business offers but how those benefits relate to your customers’ problems.
Ikea describes its USP as “To create a better everyday life for as many as possible”. The positive message combined with the value IKEA provides through products that promote comfort and a better everyday life makes this USP highly effective.
The best way to protect against copycats is to create a product or service that surpasses others on the market in terms of value for money. It is also wise to think about how easy it is for others to copy your USP when you are creating it, and to pick something best suited to your own venture.
