What is a Unique Selling Proposition (USP)?
The distinguishing factor that attracts the customers and makes the product or service stand out from the competitors is called the Unique Selling Proposition or USP. It is a unique point associated with the product like a differentiating feature, capability, cost, or some other customer-centric aspect that accounts for its selling potential. Thus USP is also known as the Unique Selling Point.
In a highly competitive market, it is of utmost importance to know your own brand and product, and also analyze the competitor’s product as well. Now point out and advertise those aspects of your product that are better and more beneficial to the customer. The unique selling proposition is the one aspect or factor that is considered to be the most unique and beneficial, the one where the other brands aren’t as good as your brand. You need to pinpoint, advertise and celebrate this USP in all the marketing activities.
USP aids both the sales and profit margins. A tempting USP garners more numbers on sales and also lures the customer to buy a product of your brand even at a higher rate.
For example, if you need a phone that has an excellent camera then the brand whose USP is a high-quality camera will be the one you’ll prefer over other less expensive ones with a comparatively poor camera.
How to create a Unique Selling Proposition for your brand?
First of all, step back and look into all the aspects of your product, brand, or service.
User research will be beneficial to understand the customer perspective and estimate their desires and expectations with the brand’s service.
Questions to be addressed
You can start formulating the USP for your product by addressing the following questions-
- What is the target segment?
- Which problems of the customer can be solved by our product?
- In what ways our product is better or unique against the competing products? Or how can our product be different from the other products?
- How do the customers weigh these differences, does it incline them towards purchasing our product?
- What catches the customer’s eye while selecting from a lot of products of type from different brands?
So now that you have listed up all the fundamental questions that form the crux of your USP, proceed to address these questions.
Mark out all the differentiators of the brand, product, or services offered, do a thorough research of the competing players in the market and find the link between the unique factors associated with your product and the customer’s needs and expectations.
The final Unique Selling Proposition
So basically after all the questions, once you are done with figuring out what your product is, what uniqueness it has got and how will it impact the customer, the last thing that remains is to modify and mold all the insights gained into one single sentence which describes the most unique and most potent selling point about the product.
This has to be minimal but expressive and very much communicative. Something that the customer connects with easily and finds valuable and different compared to all other brand’s products. Other than unique The USP shall also be the most long-lasting aspect of the product because it drives the marketing strategies and plays a critical role in building up the brand’s image.
Examples of Unique Selling Proposition
“When it absolutely, positively has to be there overnight”. FedEx’s marketing tactics put the spotlight on its expertise in overnight air freight and package tracking and also highlighted the fact that it was the first in the business to do this.
Though Domino’s runs dine-in restaurants, its USP relies more on the home delivery aspect of the service. “Fresh, hot pizza delivered in 30 minutes or less, guaranteed.” Domino’s advertises this claim and promises to not charge for the order if it’s not delivered in 30 minutes. This feature is highlighted and talked about more than the quality of pizzas it delivers.
The uniqueness of Airbnb’s service lies in the point that it offers you to find unique holiday rentals, cabins, and unique homes that are made possible by hosts. This way the customer gets to have an experience different and more absorbed into the vacation destination as compared to the experience of a hotel.
How does USP benefits the business?
The fundamental benefit of a USP is that in a competitive market it helps you to convince the people to buy your product by explaining to them what’s different about it and how it is beneficial to them. Having said that, let’s break down the impacts of a good USP on the business.
- Your target market identifies the product with its USP and the USP instantly conveys what is the most unique benefit that can be leveraged by the customer.
- Increase in sales. A USP that hits on target gives lead to the brand over competitors and thus helps in expansion and sales growth.
- Helps in building and retaining a loyal base of customers.
- Supports the sales and marketing strategies.
The USP of the brand, product, or service is the most distinguishing factor that attracts the customers and makes the product or service stand out from the competitors.
The major factors that set apart a brand in the market include- user comfort, user’s dependability, quality of product, quality of customer service, emotional connection between the brand or product and the customer, creativity in the design, and marketing of the product.
The USP is the most special benefit a business offer to the customer, which any other brand cannot offer. Thus the most basic and important benefit is that it helps to race ahead in the competitive market. It helps in branding and marketing, and sales, and market growth.