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USP stands for unique selling proposition. In simplest terms, it communicates to your customers what makes your product better than similar items sold by competitors. A unique selling proposition for business owners is advertising a product not with exaggerated praise, but with an eye on specific benefits the customer needs and wants. What makes a USP challenging to design is that it has to be something your competitor cannot claim about their products. A recent example of USP is Tide's advertising campaign, which compares its concentrated formula to competitors' watered-down products.
We have already touched on crafting a unique selling proposition for business use, but it bears repeating that a value proposition is different. A USP must be:
In contrast, a value proposition is broader and focuses on the overall value a product offers its customers. Value propositions include multiple product benefits, expected outcomes, and what makes them solutions customers are looking for. It answers the question of why customers buy a specific product. Your USP answers why purchasing it from you is the best course of action.
Sticking with our USP example, the value proposition would tell customers that buying laundry detergent is necessary for clean clothes; the USP tells them that buying this company's product gives them a better value and works better than competing detergents because of its concentration.
Now that we have defined what a unique selling proposition is and does, it is time to put one together. What does this look like?
Who is your customer? You may have already done so when creating your customer persona to identify needs, pain points, and behaviors. Effective sales techniques all but require that you make this ideal buyer before you can market to them. To craft a unique selling proposition, you need to define the persona further to highlight what matters most to them.
It should be easy to figure out your closest competitor's value proposition. However, do you know their USP? The goal here is to look for a weak spot, which is something they cannot claim about their product that you can. In situations where products are similar, look for a claim the competitor has not yet made, even if they could. If you make the claim first, it is yours.
You know what makes the customer tick and what the competition brings to the table. How can you position your brand or product as the one the customer should choose? Tide made the point by focusing on value; its product is more concentrated than other brands. Does your product have a value-based USP?
If not, look for other differentiators. For example, if you produce a software product, is it customized for a specific user demographic? Does your product have a unique feature? In the 1980s, Trill (a parakeet food maker) advertised its bird seed product to contain Iodine S11, which its competitors did not claim.
Another differentiator is your warranty or service guarantee. How does it differ from anything your competitors advertise? Costco is famous for its generous return policy. It is so renowned, in fact, that this policy has become the feature of social media memes.
A USP statement should be short and memorable. Some companies use it in their jingle. If I were to say, "Melts in your mouth, not in your hand," you would know instantly that I am talking about M&Ms. Your USP must be just as memorable.
You love it; your staff loves it. But will your customers love it, too? Testing your USP is as critical as creating it in the first place. Does it achieve what you expect it to? You have different options for testing your USP in marketing campaigns.
Remember to be in close touch with your sales department. A unique selling proposition for business success will reduce the speed at which customers move through the sales funnel. The USP is not hitting the mark if there is no difference in purchase conversions or lead generation rates.
What happens when your testing reveals that there is room for improvement? Rather than looking for a new unique selling proposition, rework how you incorporate it in your marketing message. It may fail to resonate with customers because it is unclear, too long, or too broad. While there are no one-size-fits-all USP templates for small businesses, you could take some general steps.
It is interesting to note that the memorable USP examples we have mentioned thus far do not give any insight into the many scrapped statements, ideas, or results. That said, there are some USP mistakes you can avoid from the get-go.
If your statement involves terms like "good," "great," or "fair," it is too generic. Your competitor may claim something similar about their product. You are looking for the one thing that makes you so different that it is unique to your product.
The USP sounds like a new advertising intern wrote it. Filled with buzzwords, industry jargon, and hyperbole, it is a statement that goes on and on. If it does not fit into one short sentence, consider rewriting it.
Your customers will not believe it if it sounds too good to be true. More importantly, it may open the door to negative press because your product could not live up to its claims. Is your product "the best in the country" or the "least expensive" a customer may find? Avoid hyperbole. Remember that your proof point should be tangible.
You got hung up on a unique feature. However, you fail to translate it into a benefit that your customer receives. Tide focuses on having a higher concentration of soap in its product; the benefit is that the customer has to use less detergent to do laundry. If Tide had just stopped mentioning its unique feature, many customers—but not all—could have taken the next logical step to recognizing the potential for savings.
You address all your customers' pain points. However, it is impossible to please each member of your customer demographic. Go back to your perfect customer persona and take it from there. M&Ms is focused on not melting in the customers' hands; it does not address other pain points like making calorie counting easy, being small enough to pack as a snack, or appealing with various pretty colors.
So far, we have discussed what works and what does not, and how to pinpoint possible differentiators. For small business owners looking to position their brand in a competitive field, we recommend some easy USP brainstorming exercises. You can do them with your staff or just by yourself.
Begin by drafting an "only (name of product)" statement. Only XYZ detergent does well in cold water. Only XYZ software creates hyper-local SEO. Only XYZ energy drink has a full money-back guarantee. The goal is for you to draft a sentence that you feel confident only your product can deliver.
Now, connect the statement to your consumer persona's number one pain point. What do your customers want more than anything? What frustrates them? Use a list of your product's features to address the pain points and sources of frustration. After connecting pain points to features, spell out the benefit outcome. For example, "Only XYZ detergent operates a 24/7 stain removal hotline to help with laundry questions in real time."
If you are still uncertain that your USP is as unique as it should be, look at what the competition is putting together. Notice their top ten claims, and recognize where statements are so generic that they apply to any product in that category. For example, if their detergent "gets clothes clean," it's nothing new or unique. Every laundry detergent ad says that. Look for features of your product that are not mentioned by the competition. They may be the brand differentiation you need.
Spend a few days on these exercises. When you walk away from the computer, your mind continues working and may present you with a solution.
You are still not done when you have found that unique selling proposition that encapsulates your branding and puts you in clear competition with other companies and brands. Market shift, products improve, language changes, and customer expectations evolve. Do not view your USP as written in stone. Instead, consider refining it proactively.
It is interesting to note that most companies revisit their USP at least once a year in the general course of business. Of course, significant market shifts or events affecting your products may require you to do so sooner.
If it sounds like writing a USP is a tall order, consider that staying on top of changing market conditions is just as critical. This is where E-Marketing Associates truly shines. With an innovative newsletter for business growth, you stay in the know and are at the forefront of changes as they occur. Of course, this friendly group of experts will also assist you with your website design, Google Business Profile, and social media management.
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