What is USP, and why does a business need it?

A unique selling proposition (USP) helps a brand stand out among competitors, attract the attention of the target audience, and stay afloat, or even capture a good piece of the market cake.

What is a Unique Selling Proposition?

A unique selling proposition or USP is a feature or advantage that distinguishes a product or service from others in your niche. A USP defines why customers should choose your products or services over your competitors. 

The advantage can be not only a certain function or the product itself, but also the terms of sale, price, specific customer service, innovation, quality, etc. 

Appearance of TMP

The first mention of USP belongs to Rosser Reeves, a world-famous American advertiser, author of slogans and images for M&M's, Colgate, etc. In the 60s of the last century, Reeves spread the idea that advertising should reveal the uniqueness of a product and its special characteristics. 

Until then, the market was monopolistic, and none of the producers bothered to take into account the needs of consumers, as is the case now, in the era of capitalism. Consequently, they did not offer a better and better product because there was no competition. 

Reeves, in particular, advocated hard selling and argued that it was not necessary to offer your customers something super new. 

What should be the USP?

Show the benefits of the product, give benefits, jump above your head — today the market dictates new rules. 

However, to exist in today's market conditions, brands need only to be: 

• specific and understandable for the buyer: the USP should contain strong arguments in favor of the product (or artificially created ones) and the promised "candy" (benefit) for the consumer,

• vivid and strong: a unique offer aims to attract potential consumers, so it must capture their attention and play on their emotions.

How to create a USP?

To create a unique selling proposition, follow these 7 steps. 

1. Study the market and competitors

Find out what your competitors are doing, what their USPs are, what their shortcomings are, and how you can turn them into opportunities. Conducting a detailed competitive analysis will help you identify not only your competitors' strengths and weaknesses, but also understand your own.

2. Analyze your customers

Identify who your target audience is, what their needs, wants, and values are. For whom is your selling proposition and product intended? 

For example, the USP for a baby clothes store should not be built around the needs of schoolchildren. It would be more appropriate to target advertising to parents of children from 0.

Determine what is important to your audience when buying a product or service. For example, when visiting a new beauty salon, a client may not be afraid of the high price of services, but rather of the level of professionalism of the masters.

Build your USP around the solutions you can provide to your target audience, not just the features of your product. You'll hit the mark if you tell customers how your product or service will help them solve their problem. 

For example, how your detergent will remove old stains and protect your clothes, saving you money.

At this stage, it is important to analyze all possible triggers and objections of customers, what stops them from buying from you, what inspires them, is your offer relevant and understandable to them?

Identify your own uniqueness

We can reassure you: 90% of all trademarks and brands in a particular niche produce non-unique products.

Most well-known and lesser-known brands, such as food or cosmetics, copy each other and differ only in their logo or slogan.

However, it can be seen that worthy companies have been working for years to build their own recognition, not so much by improving or highlighting their product, but by creating a unique service for their customers by providing them with special service conditions. 

Make a list of your target audience's needs and do them — a list of all the benefits of buying from you, even the most insignificant ones. Review them, select the most important ones, and create your unique offer. 

If your product is not a Tesla, develop a regular business proposal and think about the following questions:

• What exactly can you offer your customer? This can be a discount or a gift for regular customers, a bonus compliment in each parcel from a certain order amount. 

Banal offers such as free delivery from a certain order amount will not affect loyalty, as most brands offer such a USP. 

• How will the customer benefit from your offer and product? Include specifics in your USP: what advantage will you give to a certain group of your target audience? 

"Quality repairs without remodeling" is a vague benefit. It is better to emphasize the materials and the price of the repair: "Repair of a house, apartment, cottage — from $100. We work only with proven materials from German manufacturers..." (list of manufacturers).

This way, your customers will be able to "try on" your competitive advantage and decide whether to order your services or look further. 

Or another example:

"Orthopedic child seat with an anatomical backrest, adjustable seat depth and nylon wheels that lock with the child's weight. A removable cover as a gift! For the third child, the chair is half price!"

See how many benefits for the customer and, perhaps, unique differences there are — not so much in the product itself (who doesn't make orthopedic chairs with seat depth adjustment now?), but in additional bonuses for the buyer, such as a free cover and a third chair with a 50% discount. 

• Is the benefit clear to the target audience?

Sometimes there is a benefit, but it is so complicated that the buyer does not immediately understand what it is about. 

For example, the advertisement says that the slimming product will help women lose 5 to 10 kg of weight, without any food restrictions: you can continue to eat your favorite cakes, drink lattes, and lose weight!

But everyone understands that it is impossible to lose weight on pills alone without adjusting your diet. 

• What can you offer that your competitors cannot?

After analyzing your own advantages, discard those that have already been implemented by competitors and try to create your own offer that is not yet on the market. 

Make a promise to the client

It is not always possible to formulate a clear benefit for the client or add some kind of bonus. Some people have something really different from others. In this case, promise the customer that your product can fix their problem.

For example: "The robot vacuum cleaner can handle the finest dust, in the most inaccessible places, on flat surfaces."

This way, you can immediately warn an attentive buyer that your robot vacuum cleaner will not jump over interior thresholds or swallow a piece of pizza from the floor.

Or:

"Ariel will wash even what others cannot." This USP does not mean that this powder is the best available, but it will cope with difficult tasks better than others.

However, keep in mind that customers recognize a lie in a second, and you can launder your reputation for years. Every word in your USP must be true. Don't build your business on deception.

Formulate a proposal

Formulate a short, clear statement that will "catch the ear" and best convey the value of your brand. Experienced marketers say that 10 words are enough to formulate a USP.

Make sure that your offer meets the real needs and expectations of customers and can be successfully implemented in the brand's marketing strategy.

Test your USP

Once you have formulated a unique customer proposition, it should be included in all marketing materials and customer communications. After all, the regularity of using the new USP determines its success and impact on potential customers.

To test the effectiveness of your benefits, conduct a user survey on their satisfaction with the product or service, and compare sales periods before and after the creation of the USP. 

By the way, Torgsoft allows you to do this using the menu item Analysis — Quantitative analysis of sales. Create a survey form in the menu: Marketing — Customer survey system. 

You can test different variants of your USP by advertising on the Internet and sending out newsletters. In the Torgsoft program, the additional option Mass SMS and e-mail distribution will help you send messages to the selected customer base. 

Examples of successful USP

Apple: "Think different" — emphasis on innovation and difference from other computers and gadgets.

Nike: "Just do it" is an inspiration for achieving sports goals.

Comet: "Cleans stains that others can't handle" — the emphasis is on the fact that this product works better with the problem than others.

Amazon: "Earth's most customer-centric company" — focus on customer convenience and satisfaction.

Tesla: "To accelerate the world's transition to sustainable energy" — support for sustainable technologies and the transition to electric transportation.

Among Ukrainian brands, the following successful USPs can be distinguished: