A unique selling proposition (USP) is the foundation of an effective and strong marketing strategy. In a rapidly expanding global marketplace, it is increasingly important for companies to have a compelling unique selling proposition that stands out from their competitors and indicates what they have unique to offer their ideal customers.

Developing a well-thought-out unique selling proposition is often an integral part of a company’s branding strategy. It helps focus your marketing strategy and influence messaging, branding, copywriting, and other marketing initiatives. Therefore, knowing how to develop a unique selling proposition (USP) is critical to guiding your branding and marketing strategy and decisions.

In this article, we’ll look at seven steps to develop a unique selling proposition for your business.

What Is a Unique Selling Proposition (USP)?

The Unique Selling Proposition, or USP, is a marketing concept that refers to what differentiates your product or service and makes your company better than the competition for consumers.

Entrepreneur.com defines Unique Selling Proposition as :

“The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition”

A compelling unique selling proposition highlights your specific advantages that determine your product or service’s position in the marketplace and should serve to reinforce your brand image.

It is what defines your company’s unique position in the marketplace, and is an important element in creating buying power and a company that customers truly love. A unique selling proposition helps customers overwhelmed by offers to quickly understand what differentiates your product or brand from others.

Your USP should be the cornerstone of your business development and marketing strategy, your competitive advantage, the specificity of what you can offer that your competitors cannot, the reason why customers buy from you. It streamlines the sales strategy and allows you to focus on the benefits your product or service can bring to your market.

A unique selling proposition is a statement that you will build into your products or services, your brand, the experience you provide, and any other touchpoints your customers have with your company. Your unique selling proposition should be what you offer that no one else does in your market, whether it’s higher quality, lower price, better customer experience, or new technological innovation.

Specific sales offers, such as a discount, 24/7 customer service, free shipping, etc., can be a unique selling proposition, provided that other companies in your industry cannot offer such deals.  If your USP is exactly matched by another supplier’s product or service, there is no longer any reason to buy from one particular company, and the product is not unique.

However, if a superior product and exceptional service are the basis for your company’s growth, it is possible to use this differentiation as a competitive advantage to set yourself apart. Even if this superior quality and exceptional service exclude some of your potential customers, it is a competitive advantage that contributes to the growth of your business.

Why Is It Important to Have a Unique Selling Proposition?

A compelling unique selling proposition can make a difference in competitive markets and in your niche industry. A compelling selling proposition will help customers quickly understand what your company offers and why they should choose you over the competition.

In addition, your unique selling proposition can be an effective tool to help you remain memorable and form a positive impression in the eyes of your consumers and can even have the greatest influence on sales. A well-developed unique selling proposition can help you attract and retain customers and reduce churn.

If you fail to define your USP, you will have a hard job convincing potential customers to buy from you rather than your competitors. Companies need to communicate the key features of their products through all marketing materials so that these benefits are easily recognizable to customers. 

Your product features must be memorable so that customers recognize and remember those specific features. In essence, your USP should communicate to your audience that your product has superior value and that this value is only available if they buy from your brand.

Every product description and advertising activity should communicate the USP of your product or service. So it’s critical that you leverage your unique selling proposition and make it the cornerstone of your overall marketing strategy.

How to Develop a Compelling Unique Business Proposition?

There are a number of ways to get the word out about your product or service, even if you manufacture or sell a common product or service. When formulating your product’s USP, it’s important to implement these key elements:

– It must be difficult to imitate.

– It must be easy to understand.

A product’s unique selling proposition is designed to appeal to a specific audience. The best unique selling propositions directly address a specific need of a company’s ideal customer.

The goal of a USP is to present compelling arguments that make you different and desirable so that a potential customer will buy from you. A successful unique selling proposition can consist of a few words like a slogan or an entire paragraph.

1. Develop Your USP by Identifying Your Target Audience  

Before you can begin to consider the qualities that set your business apart from similar businesses, you need to know almost everything about your ideal customer. Finding your unique selling proposition starts with careful market research. The first step in building a strong connection with your customers is to understand what interests them and what makes them choose your brand over your competitors.

Without this knowledge, it’s impossible to understand what matters to your target audience and put it forward in your marketing materials. Your unique selling proposition must be truly unique and focused on what your customers value.

The word “unique” won’t have much value if it’s not something your target customers value. It’s not necessarily what you’re selling that needs to be unique, but you do need to differentiate yourself around something that your target audience cares about, so that the message you choose to focus on can’t be used by your competitors, or your message won’t be as effective.

Your unique selling proposition must be compelling enough to capture your target audience’s interest and entice them to talk about it, and ultimately buy it. Think about what customers like about your product or service, and those of your competitors.

Look behind the core elements that are similar to all vendors in the industry and consider the criteria customers use to decide which product or service to buy. By involving knowledgeable people in the process, you will improve the range of characteristics you identify.

 Try to see things from the customer’s perspective, then make your best guess. There are many different selling features, such as price, convenience, quality, speed, selection, usability, reliability, cleanliness, customer service, warranty, customization, originality, and specialization, etc., that can influence your customers’ decisions and keep them coming back.

Choose the one that will be the focal point of your statement and work on that aspect. To embody and communicate your unique strengths, ask yourself the following questions:

What is your customers’ problem? What is the question they are looking to answer?

What have you created to solve their problem?

What factors drive their buying decisions?

Can this strength be easily communicated?

How will your customers’ lives be improved by using your product or service?

What is your guarantee?

What do you want them to do after reading your USP? 

When the social, financial, and psychological characteristics of your target audience are known, it is possible to determine how your product’s features can be a solution to the target audience’s problems. Customers must ultimately be influenced in some way to buy the advertised product.

read more:

20 Effective Strategies to Grow Your Online Business 

15 Steps to Building a Successful Brand for your online business

2. Consider Your Unique Selling Proposition from a Problem-Solving Perspective

To create a compelling unique selling proposition, once you’ve looked at your ideal customer’s profile, you need to market your products in a way that shows them that you can meet their needs and solve their problems. To ensure that your USP can meet their needs, ask yourself the following questions:

If your potential customers choose your products, how will their lives be improved?

What makes your company so different that potential customers should choose your products or services?

The answers to these questions should form the basis of your branding strategy.

3. Determine Your Competitive Advantage

A well-developed unique selling proposition defines a company’s product or service and gives it an edge over the competition. In order for you to stand out from the competition by showing your unique selling proposition, you must know who your competitors are and what their strengths are. 

Identify your competitors and see what needs they are meeting. Look for gaps where you can potentially present your brand differently. Can products in the same industry be positioned very differently to provide value to your target audience?

If you want to hold a strong position in a market, you need to deliver on your promises in order to build a strong foundation and penetrate the market. You need to be able to identify some aspects where you think your company is really good.

In your unique selling proposition, you need to clearly characterize your product or service, allowing you to grow your business through a loyal market. Your USP is the big reveal that best repositions your brand based on what your customers are interested in and what your competitors are not.

Compare your unique insights to your audience’s needs.

Are there customer needs that have not been met?

Is there an aspect of your business that is different from what others are offering?

How are you “better” than your competitors?

Do you see any pain points that you can address that your competitors have not?

Instead, look for an area of the market where you can wear your own colors and is relatively untouched by competition.

Why do your current customers choose your company over your competitors?

What is unique about your product or service that your competitors do not offer?

How easy is it for your competitors to replicate?

4. Examine Trends in Your Industry

At the same time, constantly monitor current trends and new opportunities that may affect customer perception of your USP. Think about the key trends in your industry and the most important issues, to find the needs that no one is addressing and determine if you can extend your advantage to those areas.

5. Develop a Sales Pitch with Your Unique Selling Proposition

After determining who your ideal customer is and explaining how your company can solve their problems, you need to tell them why they should choose you over the competition. However, with your USP, just like with advertising, you have very little time to express all of this in order to capture the consumer’s attention and convince them.

Your USP should be almost immediately obvious and provide an excellent summary of what makes your company different with an emphasis on qualities and values so that you can use it as the basis for your marketing efforts. 

6. Write Your Unique Selling Proposition 

Once you have a vague idea of what your USP is, it can be helpful to express it in the form of a positioning statement. Write your compelling unique selling proposition that expresses your unique selling strategy and then integrates that into different areas of your business, your brand name, your content, your ads on different social media channels to reinforce the idea with your customers.

All of your marketing efforts, as well as specific differentiators that can be emphasized, should be aligned and help clarify your unique selling proposition for your audience.

7. Maintain Your Unique Selling Proposition 

Differentiating isn’t just about finding your USP, it’s also about aligning your business to deliver on its promise and ensuring that you’re bringing stated value in your UPS and results to your customers. In addition, you need to prevent your USP from being imitated by your competitors by constantly improving and investing in it.  

Conclusion

I hope the points listed in this article will help you develop a unique selling proposition to strengthen your brand image and make your advertising more effective and personalized. A clear and crisp USP can become the foundation of your company’s marketing strategy.

Using a unique selling proposition (USP) by highlighting your unique benefits will greatly improve the effectiveness of your promotional and sales activities. But this requires a good understanding of the specific needs and interests of your target market customers, changing trends, your competitors, and your industry.

Correctly communicating your unique selling proposition is also essential to convince your customers that only your company can meet their demand, which helps solidify your product or service’s position in the marketplace so that your customers will want to continue paying for it.