In today’s economic climate, it is essential that companies are able to hit the ground running, rather than spending their first few months playing catch up.
Competition is the natural order in business, especially in a connected world we live in where it is not just your local competitors that you need to worry about. Customers are overwhelmed with options in the market, and they want to quickly understand what makes one product/serviceor brand different from another. Knowing the right way to position yourself and your products can mean the difference between standing out and blending in. To bring in customers, you have to stand out and show them why they should choose your business over your competition. It is no good telling the customers that our quality is better than the competition and hope that will captivate the customer.
This is why it is important for all entrepreneurs to understand how to identify aunique selling proposition (USP)to help guide your branding and marketing decisions.
'USP' stands for Unique Selling Proposition or Unique Selling Point sometimes known as a Unique Value Proposition. It is the thing that differentiates a product or service from its competitors. Unique Selling Points tend to revolve around price, quality and or service. This is because these three things are what customers value most.
It is a short statement that describes;
- The benefits of what your business does or offers
- How your business solves the problems or needs of your customers
- What sets your business and offerings apart from your competitors
In short, it is the unique value that you offer in the market and to your customer base.
This simple concept forms the foundation for a company’s existence. It defines what your brand stands for, how you canposition yourself in the market place, and why your customers should choose you over your competitors. Your unique selling point is the heartbeat of your organisation i.e. the thing that sets you apart from the others, and highlights the heart and soul of your company.
In mature markets, everything you can think of is probably being sold right now. What is more is that in the internet age, consumers have more freedom, choice and are more informed than ever before. They tend to research before making any purchases. Even new innovations in design are quickly copied leading to hundreds if not millions of competitors all looking for that same market and that same sale.
In this world of cut throat competition, a company needs to differentiate its products and services to sell.
You may have heard the saying “it is a jungle out there” and never more so these days in business which is why you need to determine if your Unique Selling Proposition (USP) is strong, clear and effective.
So, trying to sell your product in a world filled with billions of items and services plus savvy informed buyers is, if nothing else, frightening for any young business. But there is hope; by usingclever marketing, finding your originality and delivering on your unique selling point (USP).
Going into business without a USP is a gamble. If you don’t have a clear vision of what makes you unique, you are less likely to stand out from the competition and your product/service is likely to sink into the shadows struggling to compete in the marketplace. It also does not leave an ever lasting impression in the minds of your prospects. It will also be difficult to actually define, let alone communicate, one aspect which makes your brand special. If you are entering a crowded industry, things become even more difficult in terms of business.
However, the great news is that your product/service already has a USP without you realising it. It is now your job to define and implement it into your marketing message so that your target audience knows exactly what you are offering, how they will benefit and most importantly why they should to your company/business rather than the competition.
So, what is your Unique Selling Point(USP)?
When you first start your business, it is tempting to try and stand for everything. After all, what’s more loveable than a brand that speaks to everyone?
Unfortunately, though you might like the idea of being an all-purpose company, the truth is that when you attempt to be everything to everyone, you end up appealing to no-one. That is where a unique selling point comes in handy. It’s the individual stamp that you can put on your business, to tell a specific audiencethe definitive thing that you do best out of the competing crowd.
What you are trying to achieve with your Unique Selling Proposition is to stand out from your competition in a way that is specific, tangible and of value to your target segments.
A unique selling proposition is something you will need to establish at the beginning of your branding experience, before you start considering things like websites and marketing. This is because your USP contains all the things that you will need to embrace in your advertising efforts.
For example, your USP should help you answer the following questions:
- What is your product or service, and why is it different to whatever is currently on the market?
- Who is your target customer, and what is their specific pain point that you are hoping to address with your services/products?
- How can what you offer improve someone's life?
- What are you offering that the competition is not?
- Why should they purchase your service or product and not the competition?
- Why would the prospective customers need your product/service?
Evaluating your product from a third person perspective, your business and your offer from a third person perspective is very important.
USP - Unique Selling Point/Proposition
A USP is what businesses need to have when they are wading through the vast marketing quagmires and trying to get their great product and or service to the right customer(s). Having a fantastic and attractive USP is essential for your business because without it, your business is likely to in the very competitive world.
But what does a USP do? A USP helps you look at what it is that makes you and your business remarkable and original. By employing tactics thathelp you discover your USP, you will understand what it takes to get the must needed edge over your competitors.
Having a unique selling point is telling your customer you have something they want that no other competitor can offer. It can attract new customers by separating you from the rest of the pack.
Examples of Unique selling Point(USP's)
Starbucks unique selling point
Starbucks is known for its commitment totailor made high qualitycoffee, “We’ll always make it right”.
The unique selling proposition for Starbucksis simple enough: “Love your beverage or let us know. We’ll always make it right”. Starting off as a small coffee shop in Washington, Starbucks had a long way to go in order to become one of the most recognised brands in the world. However, they managed to accomplish their goals by choosing an important unique selling point.
Starbucks don’t define themselves as the cheapest, most luxurious coffee around. Instead, they focus on drilling down into the ultimate desire of all coffee connoisseurs – finding their perfect beverage. Yes, Starbucks source high-quality beans, and they are known for their luxury. However, the main driver behind their success is the fact that they make your drink to your standards. No exceptions.
Apple unique selling point
Apple earns their reputation as a cutting-edge industry innovator. Without these characteristics the business would be just another competitor in the marketplace. Apple is perceived as a high quality product manufacturer. The Quality acts as its USP hence enabling the company to charge a premium price for its products.
FedEx unique selling point
The famous FedEx’s slogan; “When it absolutely, positively has to be there overnight.”
Although the company no longer uses the slogan: “When it absolutely, positively has to be there overnight”, it was that phrase that made the company one of the most appealing package delivery forces in the world.
When you are looking for someone to help transport letters or products around the world, you don’t need a courier with the best packaging or the most interesting logo. You need a brand that gets the job done quickly and securely. While FedEx’s current slogan is not quite as effective, their USP remains the same.
Tesco unique selling point
Known for being the largest retailer in the United Kingdom, and the third largest in the world, Tesco earned their recognitionnot by promising the cheapest prices, or the widest selection of products. Instead, they focused on creating “value” for customers by promising to “treat people the way we like to be treated.”
Customers love Tesco because they do their best to deliver exceptional experiences – no matter what. From their customer service efforts, to their vast range of varied products, Tesco stand out for their devotion to their consumers above all else. Although the company has evolved with the years, its USP holds strong, hence the slogan: “every little helps”.
Uber's unique selling point
The unique value proposition of Uber is “Always get the ride you want.” With this statement, the user gets a clear understanding of the business’ services without actually having to go through any web pages. Their statement is clean, unique, and shows you what the business stands for.
Zappos unique selling point
Zappos is yet another company with an exceptional unique selling proposition. Over the years, they have earned their reputation for being the most customer-friendly, convenient online store for anyone who wants to buy a great pair of shoes. They partlyearned their brand loyaltyby offering freebies like free returns and shipping. But it’s their USP that prompted them to take that focus in the first place.
Zappos didn’t want to be known as just the cheapest source of online shoes. They also wanted their customers to see them as the friendliest, most convenient place to shop online. The brand began by making their return policy incredibly simple, and focused on delivering customer service that removes some of the fear and uncertainty involved with buying clothing online.
Amazon unique selling point
Amazon’s value proposition varies from service to service. However, the value proposition of Amazon’s Kindle stands out, “Easy to read on the go.” The simple statement does not require any addition because you understand the benefits of the service, what the service is, and why you should get it.
Duolingo unique selling point
The value proposition of Duolingo is “Learn a Language for Free. Forever.” With this statement, the user gets a clear understanding of the benefits of using their service. The word “free” grabs the attention of the user while the word “forever” encourages engagement.
AirBnB's Unique Selling Point
Airbnb differs from its competitors by being more than just a space for classified advertisem*nts. The website facilitates the entire process of listing AirBnB properties and booking and handles all financial transactions. This means that payments are made on time and are secure. For example, an AirBnB guest has to be checked in for 24 hours before the host is paid. It is free to list a property, and the commission is only charged when a transaction goes through. The website also offers a review system that allows actual users to write reviews. This helps make reviews more accurate. Another aspect is the extensive network globally which helps international travellers and hosts to connect with each other easily.
Other examples:
- Southwest airline claims to be the lowest priced airline, in this case its cheapest fares are its USP.
- Dominos Pizza's USP, is its 30 minutes delivery policy.
So a great USP can be derived from looking at thecore valuesof your company and discovering what it is that makes yours so unique.
Why do you need a USP?
It is more likely that many of your prospective customers have difficulty deciding which option in your industry is the one that deserves their time, money and trust.
This selection can be a daunting process for customers that don’t have the experience to know what separates one competitor from another.
That’s why it isyourjob(as the business owner or management) to assist them by making your unique selling proposition obvious, different and memorable enough that they can see exactlywhat your business has to offer that the other competitors do not.
“Differentiation is one of the most important strategic and tactical activities in which companies must constantly engage.”
Unless you have developed a completely new product, you definitely have competition.You need to give your potential customer a reason to choose you over the competition.Having a USP will give direction for your marketing which will increase your sales.
A USP also creates and defines your niche or your audience. For example British supermarket chains all sell food. But when you have a closer look, Waitrose doesn’t quite compare to Lidl, or Tesco or Sainsbury's, right? That is because every single one of them has claimed a niche for themselves, along with a suitable USP.
Waitrose is the up-market, high-quality version of a supermarket for people with higher income and foodie genes. They don’t have the Royal Warrant for no reason and their slogan ‘Out of the Ordinary’ fits the bill perfectly.
Lidl, on the other hand, chose the opposite end of the price scale and claims to be the place ‘Where Quality Costs Less’.
So your unique selling proposition is all about your positioning in the marketplace, defining how you do business and with whom.
To address the question, Why do you need a USP?
Imagine you gone to at a networking event. You have been to several similar events and you have met your share of, let’s say, photographers there. Their respective ‘elevator pitches’ have been fairly straightforward: I take photos, I do weddings or headshots for your website, whatever you need. But what if one of the photographers said: "I specialise in food photography"?
He or she might not get the job for your niece’s 10th birthday party. But he is memorable, more so than the other non-descript photographers. He just established himself as an expert in his niche area instead of doing a little bit of everything. So when you next talk to a restaurant or cafe owner who needs a new website with lots of photos of their fantastic food, who will you think of?
By defining your niche, you position your small business among your competitors. It makes it easier for people to remember who you are and helps you target exactly the right people for your small business.
It also gives you an expert status because your clients feel like they are in good hands. They are not just hiring anyone, they are hiring a specialist for what they want.
How to figure out what your USP is
Before you can decide what makes your product special or different, you need to know what else your prospective customers have to choose from. That means conducting anin-depth competitor analysisfor each of the major players in your industry. Ask yourself which products exist that could fill the same gaps as yours, and what USPs your competitors have. To learn as much as possible, check out your competitor’s marketing materials, websites and product descriptions.
Understand your target market
Who is your exact target market and why did or would they purchase your product or service? If you haven’t asked your customers this in the past or your customer data doesn’t answer this, then one way to do this is with a survey of your customers. Another way is to read through your online reviews (both good and bad), take note of why people choose you.
Remember that you cannot appeal to everyone. Getting one personto connect strongly with your business is better than five people whose feelings are neutral. This is because the one person is already sold.Finding yourUSP leads you to your ideal customer.
First of all, have a look at your competition;
- How are they representing themselves on- and offline?
- Do they communicate a slogan or a specific USP in their marketing material?
- Who are they targeting?
- What do they offer and at what price?
This way you know what choice your potential customer is confronted with when looking for the service you and your competition offer. And showsgaps in the market you can use to set yourself apart. Sometimes simply having a USP no matter what kind, can set you favourably apart from other businesses.
Define Your Audience
“Know your audience - know what they care about, know what matters to them and what makes a difference to their lives. Only that way will you understand which are the problems that are worth solving, where you can make a difference and where you can truly do something new and innovative.” – Mark Johnson, Head of Digital Marketing at KTN.
You need to have a heightened understanding of your target audience. You should know their views, beliefs and buying habits inside out. When you reach an appreciation of this, you will learn the key points that will lead them to pick you over the competition. This is also going to be very helpful when it comes to actually marketing your product or service. After all, you need to be sure your ideal demographic is actually receptive to your brand communication.
Define your target groups
Have a look at yourtarget groups:
- Who do you want to do business with?
- Who will benefit from your service or product?
- What do they need and want?
- How do they use your product or service?
At this point, it is very important that you don’t describe who you can do business with but who youwantto do business with. Of course, if you just started your small business you want to get as many clients as possible without being particularly picky. But defining your ideal customerwill save you a lot of time and money in the long run.
Analyse your products and services
Now have a closer look at what you are offering:
- Are you cheaper or more expensive than your competitors?
- Is there anything you offer that they don’t?
- Or the other way around?
- How do you deliver your service or product?
Make a list of yourproduct features and benefits. The features describe what your product or service does (for example your alarm clocks wake your customers up at a time of their choice), the benefit is what they get from it (in this case being woken up reliably, on time and never be late to work).
Solve a Real Problem in the market
“For many technology based companies, it is critical to avoid focusing on the development of the technical solution before first getting a real in-depth understanding of the problem to be solved. Talk to customers.Reduce their problem statements to simple jargon free language. Test the problem from different stakeholder perspectives and quantify the potential impact.” – Darren Ragheb, Head of Business Development at Centre for Process Innovation.
If your business is to entertain your customer, you don't need to worry about this. For every other concept,you need to solve a problem. This doesn’t have to be obvious but it does need to actually exist. Your product or service should improve our quality of life, save us time or simply educate us. Don’t be tempted to fall into the trap of coming up with a solution for a problem which does not exist.
Demonstrate Unique Benefits
“What is the real problem?Who is feeling the pain enough to pay you to solve it?” – Mike Pitts, Head of Urban Living & Built Environment at Innovate UK.
Have you got some sparkly benefits that you have been working on? Are any of them specifically aimed at your target audience? Which of those stand out above the competition? If you have come through with an answer to all three questions, you are the owner of an effective USP. If you are stuck on your benefits,ask for customer reviews. This is a powerful tool which could change your understanding of what makes your brand unique.
What is your competitive advantage?
Write a list of all the things that you do well in. Research your competitors and see whether they are meeting the customer needs. Are you doing anything better? Can you do what they are doing better?
Make the statement
Turn what you believe is your USP into a statement. Write it in different ways. You could also give each idea an image to help bring the concept to life.
When you make a statement, make sure that you can back it up. When you say that you have the best Italian food in town, the first question that will pop into people’s mind is “Why?” Make sure that you can back it up with Awards or Reviews. Some people will check. If you say that you have great service but all your reviews say that your wait staff are rude, then your statement loses credibility.
Describe your values
Think about your values and strengths:
- What is important to you?
- How do you want to be perceived in the market?
- What do you want to stand for?
- Have you e.g. always been a promoter for a healthy lifestyle or saving the environment?
Then make sure your marketing, products and services reflect that – using your business’s USP. For example, if you are a plumber and you have never been late in your whole life, for what it is worth, shout about it. Many people will love you for it.
Push your message
You should always be reminding customers of your USP and showing them examples of how you are achieving this. Whenever you are investing in any form of marketing (website, logo, slogan etc), ask yourself ‘does this clearly communicate my USP?’
StillStuck?
Think a little broader – What are you (and your competitors) not delivering for customers?Is there something about the industry that all customers have an issue with?
SMALL BUSINESS
If you are a small business with only one main service or product, you only need to come up with one USP that can be articulated into a short paragraph. So it may be easier than you think in defining your unique slant.
Try the following:
- Understanding what they want:By understanding what satisfaction the customer gets from a product or service and finding out why that particular thing is beneficial to them, will help you in delivering your USP.
- Compare yourself to the competitors:Comparing your competitors’ product or service with your own project’s strengths and weaknesses will help you discover what gaps may be in the market.
Offers and benefits:Show your customer how your product will offer something the others don’t offer and listing the benefits of these offers will attract customers who may need specific solutions to their own problems. (Think about cold medicine adverts, offering pain relief for colds.)
- Promise:What is your unique promise? Is it ‘full refund if not completely satisfied,’ or is it ‘lose ten pounds or win a pizza’. Creating a promise that best suits your audience and your business, that no other competitor can guarantee, will help you make a great USP.
Another great question to ask in defining your Unique Selling Proposition is: what is theonething that if you could guarantee would make you the market leader? It is an excellent question and one that goes to the heart of finessing your USP.
What makes a great unique selling proposition(USP)?
Your unique selling point is the ingredient that makes selling your product, or identifying your brand easier. While yourcontent marketing strategy, your advertising campaigns, and your brand building efforts will all go some way towards ensuring the success of your company, it’s your USP that gives these elements the weight they need to truly have an impact.
As capturing the attention of banner-blind customers becomes increasingly difficult, your unique selling proposition is the element that captures the hearts and memories of your audience. It combines with your personality, your marketing solutions, andyour brand image, to create something timeless and inherently persuasive.
Three simple tips that could not only simplify your value proposition, but help you to discover the best way of communicating with your audience;
Your unique selling point should define:
i)A brand that solves problems
If you want to be successful in business, it all starts with understanding one simple secret; customers don’t want to buy your products per se. What consumers want, is an opportunity to make their lives better, to solve their problems or achieve an essential goal. This could be as simple as buying a sandwich because you are hungry, or a set of tools to fix a sink.Getting your customer engagedwith your brand, means discovering their pain points, and finding a way to manage them.
An example of the cosmetics industry for example. Companies like Lo'Real and Max Factor don’t simply sell hair and makeup products – they offer lifestyle ideals: style, confidence, and glamour. In a problem-solving context, cosmetics companies are telling people they can address their self-esteem issues by buying specific products.
To create a USP with clout, start by examining your customer profiles, and thinking about how you can market your products in a way that shows those specific people you understand, and can fix their problems. Remember, the more you canadjust your voice and brandto the preferences of your audience, the more powerful your brand becomes.
ii)An irresistible product or service
Once you know your customers and the precise problems they face, you will need to decide why they should choose your business over your competitors. For some brands, this will mean considering yourmarketing mix, including the product, price, place, and promotion of your company. Most brands will situate their unique selling proposition around one of the “P’s” of exceptional marketing.
For instance, as we mentioned above, Zappos focuses on the “People” with its USP. The company has designed a solution that makes purchasing footwear online simpler for its customers. Other brands will concentrate on “Place”, identifying their business as a “local” source of assistance, or a company that sources parts and materials from a specific place. Perhaps the most challenging “P” to address is “Price”. If you make your value proposition all about being the least expensive option on the market, you could risk losing your customers the moment someone finds a way to offer your product for less than you.
No matter which “P” you target, you should always make sure that you are making a clear promise to your customers. Guarantee something that only you can offer, and make sure that you stick to that promise in everything you do. FedEx guarantees it can get a package to its destination overnight – and that’s what it does. Any failure to meet your promise could damage your reputation forever.
iii)A clear elevator pitch
When you have decided who your perfect customer is, how your business can solve their problems, and why they should choose you over the competition, you will need to establish how you are going to embed your USP into your marketing.
Is your USP truly unique?
Part of having a trulyunique selling point(USP) is being exactly that; unique. Creating a product or service that has no real originality or value for your customers will quickly drive them away when another similar product comes around. As you will quickly realise, you cannot pull the wool over people’s/customers eyes for very long before they lose trust or value appreciation for your products and go somewhere else.
Creating a benefit
The true meaning of having a USP is not about creating gimmicks to lure customers away from competitors. Instead it is about creating an original way that customers will really benefit from your business.
Whether you want to drive more traffic to your website, or generate sales for your company, the best way to deliver a truly unique selling point is to create something that you believe is remarkable enough that you would want it for yourself.
It is with this mindset that will separate you from the others. The belief that you are doing something that is so authentic and inspiring it will naturally draw others with similar minds too.
Other practical ways of judging whether your unique selling point is original, is by looking at best practice in the business world:
Example
One example of best practice in discovering whether your product has that definitive edge is by looking at most successful innovative organisations out there. Take Twitter for example; Twitter a social media platform, saw a gap in a fledgling digital market that was different from other social media platforms such as Facebook, Instagram, YouTube and or Myspace.
Twitter developers saw a niche; their members could have their voices heard in quick snappy sentences, and so they fashioned the term 'micro-blogging'. By looking at their market,understanding who their audience was, and seeing what their competitors were not offering, Twitter creators unleashed a true a modern digital service that caused a global storm.
They saw a gap in the market and did something quite remarkable; gave people what they didn’t know they wanted and sold it to them as if they needed it.
How would I identify the right customer for my business?
Finding the right customer for your business can be tricky. The problem being that you cannot sell to everyone, yet you do not want to alienate potential customers.
One of the most essential things to do when building a marketing campaign is to know exactly who your user is.Whether you are selling online or offline, through whatever medium, one of the most important factors is defining exactly who you are selling to. To do this you must first refine your product/service (what is your USP?) and offer solutions to customer needs.
Identifying your target market
Successful SMEs know that their market is limited. They have to determine who exactly their target is and drive all marketing efforts towards that audience. In short, they have become specialists in their own field and attracted customers who will benefit most from their unique selling point (USP).
Identifyingwho your target market isrequires an objective analysis of your business, refining your sales pitch and finding that specific audience.
Becoming a niche
No business no matter how large can be ‘all things to all people’. All great businesses have a particular sales audience and benefit from selling to a limited scope. Finding this scope requires you to refine what it is you are actually selling, and becoming a specialist. You must examine your market place and look for unmet needs. Even if you are selling the most basic services or products you must find out what makes you different and show your customers how they will benefit from your products or services.
Marketing research
Discovering who is buying what and where, can save you a lot of hassle, especially if you have created a product that simply nobody wants. More optimistically, it will show you if there is a demand before you begin your marketing strategy. Research can take time and energy out of your business momentum, but without it, you are simply spending time and money based on guess work.
Marketing your market
Having a specific target group through the use of profiling will help you understand how to market your product. Different target markets require different marketing. A great example is looking at the different ways marketers sell men and women bathroom products. See the differences? Your ideal customer(s) will respond to different mediums and content.
It’s time to uncover your USP
Your unique selling point definition is the navigation that steers your company towards its individual goals. Your value proposition will guide you into the waiting arms of your target audience, help you to choose a voice and marketing strategy that speaks their language, and ensure you make the right decisions about future growth.
At the same time, your USP helps you to hone in on the primary reasonwhy your brand exists. This should help to give you the foundation you need to improve on what you do best. With a unique selling proposition in mind, you can consistently adjust your advertisem*nts, design elements, and branding efforts to create a unified and unforgettable experience for your customers.
Since a strong unique selling point has the power to make or break your business in competitive industries, it’s not a simple thing to find. In fact, some businesses spend months, or years looking for theirs. However, if you can find the right USP, then you can make that feature the cornerstone of your brand and marketing strategy, ensuring that you can speak directly to your customers rather than becoming another voice clamouring for attention in the market.
All the best brands are unique, so what makes your company special?
CONCLUSION
A unique selling proposition, which defines your company’s unique position in the marketplace, is an often overlooked but is a very important element of creating a business that customers love. A strong unique selling proposition lets you stand apart from competitors and actively focuses your energy on creating things that cater to your ideal group of customers.
Finding your unique selling point will take a lot of time and research but without it, you are just selling another unremarkable commodity.
Modern customers are overwhelmed with constant marketing and advertising messages, combined with the clutter of overflowing email inboxes. If you cannot tell them quickly and effectively what makes you better than your competitors, then there is a good chance you will lose their attention and or interest. Of course pinpointing your unique selling point definition is going to take some creativity and a lot of soul searching.
In a nutshell, your USP is what your business stands for.
It’s a simple statement that explains to the consumer how your product is different from those of your competitors and how this difference makes your product the best solution to their problem.
It is a common mistake for businesses to try to be everything to everybody: We are the cheapest! The best! The easiest! Have the best quality!
This overzealous need to appeal to as many customers on as many levels possible is doomed to fail for one simple reason: when you try to be known for everything, you end up being remembered for nothing.
It’s time to uncover your USP
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