Unique Selling Proposition
Every business has, or can develop a unique selling proposition. First you need to identify the features of your product or service. Then convert the features into benefits that the customer will recognise, and finally to identify which benefits you are going to use to develop your USP.
Stand out from the crowd
'USP' means unique selling proposition. It is one of the basics of effective marketing and business that has stood the test of time.
A USP can help customers by saving them time when they are considering buying a product or service. By stating simply and clearly why your product or service is different, it will stand out from the competition. You can use a different USP for every product or service within your range. Alternatively, you may decide to use a company-related USP, such as high levels of customer care and service.
USP is essential in business
Every business needs a USP for its products and services. To stand out in today's crowded market place you must be either better or cheaper than your competitors.
The process of identifying a USP helps you to focus on the key benefits that help to sell your products or services and contribute to your profits. You can also use your USP to provide a focus for, and therefore improve the effectiveness of, your promotion and sales activities.
If you want to see examples of USPs in practice, then advertising is a good place to look. Advertising agencies have limited space to convey all the features and benefits of a particular product or service. So, in just a few words, they seek to communicate how the company is different and what customers can expect when they buy the product or service.
A thought... if you find that your customers are switching to competitors or buying purely on price:
- Have you identified the USPs for your products and services?
- If so, are you communicating your USPs clearly to customers?
Making it work for your business
One of the advantages of USPs is that it is a very easy concept to understand. You just need to concentrate on making it work for your business.
Before you start to use it, it helps to know:
- The features of the product or service you wish to promote.
- How and why the customer uses the product or service.
- Features of your competitors product or service.
You may already have this information from your own experience, from your sales team or from past market research. If not, call a few customers and get their help - most customers are happy to tell you why they bought your service or product. Make sure that they are representative of all your target customers and encourage them to give you an unbiased view.
When finances allow, this information should be verified through market research, whether you carry this out yourself or use outside help.
Define your USP
Here are some steps to work through to define a USP for one of your products or services.
- Start with the product or service that you most want to succeed, or has the greatest potential or provides the largest contribution to your profits.
- List all the main features of the product or service. Features describe what your product or service does. Your list should include features such as quality, service, delivery, price, and functional or technical characteristics.
- Convert each feature into one or more benefits. While features describe what your product or service does, a benefit describes what customer need it fulfils. Converting features into benefits is very important because customers buy benefits, not features. Some benefits will be more important to the customer than others. Make a list of benefits and rank them in priority order.
- Consider each benefit in turn and indicate whether this benefit is: Standard to all competing suppliers' products or services. Something that is different and special to you, these are candidates for your USP.
- If all your benefits are rated as standard then this indicates that there are no obvious differences between your products or services and those of your competitors. In this case there are two things you can do.
- Consider how your company scores against your competitors on those benefits that the customer considers to be most important. Look for those benefits which you rate highly, and shows the biggest difference between you and the competition. This analysis will reveal whether you have particular strength that may be exploited in a similar way to a USP.
- Consider how you could develop your product or service features to deliver new customer benefits that are not provided by other suppliers.
- Repeat this process for all other major products or services, and when you have done this, think about your promotional activities.
Now consider your message?
When you have defined a USP for each of the products or services you are considering, then you should decide what your message should be and how to communicate it to your target audience.
