USP stands for Unique Selling Proposition and is one of the most important concepts within the marketing theory and practice. It has been defined as they key feature or the perceived benefit that differentiates a product from other competitors. In other words it is what your business stands out for.
Why is it important?
As the competition keeps growing and the marketplace is getting saturated, the Unique Selling Proposition concept is becoming more and more important. A strong USP will make your company competitive among other market participants, and unless you find a feature that differentiates your firm in this chaotic business landscape then you cannot gain competitive advantage.
How to uncover your USP
- Think from the consumer’s point of view: A lot of times businesses forget to think what the end consumer needs. Yet it is one of the most important steps. Take a step back and reflect on your customer needs and how you can satisfy them
- Check what is trending in the industry: Subsequently, it is equally important to check what is available in the industry and analyze your competition.
- Reflect upon your strengths and weaknesses: After seeing what going on in the marketplace, it is time to assess your current situation. What is your strength as a company? How would you define your capabilities?
- Define your USP: Going through the steps above you should by now have a clear picture of what is going around in the marketplace, as well as where your internal business strengths lie. Integrate the two and your USP should start to make sense now.
- Tell it to your customer: The last step is the most important one. In this phase, you need to show your customer how you will solve his problem. You need to show him what your USP is and support it with 360 marketing activities:
Types of USP
Often businesses establish their claim on the product or service offered. On these grounds, firm can base their claim on quality and therefore support that their product is superior against competitors.
On the contrary, businesses can instead base their unique selling proposition on their price. Basing your USP on price doesn’t necessarily mean that you compromise on quality – instead you can just choose to emphasize on value.
Although product and price are the main sources of your unique selling proposition, there are also other features and factors you could base your USP on. One example is customer service which may include having 24/7 customer support, refund policies and help lines. Other factors that could be the source of your USP are range of products, online presence and delivery.
So, is USP that important?
Yes it is. A USP is the reason people will choose you rather than someone else. It is what wins the customer, either from an impulse purchase or a long term relationship. You should take the time to consider what your customer needs and what differentiates you from the crowded marketplace. Only then, you can enjoy the perks of a competitive advantage.