What is a Unique Selling Point? – Unique selling points are selling points that are unique and different from the products/services offered by competitors. Learn what a unique selling point is and its strategy for business growth here!
- What is a Unique Selling Point?
- Why is a Unique Selling Point Important for Business?
- Effective Unique Selling Point Criteria
- Tips for Determining Business Unique Selling Points
- How to Communicate a Unique Selling Point
What is a Unique Selling Point?
A unique Selling Proposition or Unique Selling Point (USP) is the value that differentiates the product/service from competitors in its class. This includes the features, usability, taste, facilities, services, technology, quality, or other values of the product/service that are superior and unique to those of other competitors.
It is said to be a USP if a product/service has differentiating factors, such as the cheapest price, the best quality, advantages, pioneers of products in that category, legendary products, and something that your brand has but your competitors don’t have.
The concept of a unique selling point (USP) was first introduced by Rosser Reeves of the legendary advertising agency named Ted Bates in the 1940s.
According to Rosser Reeves, a product/service with a USP will provide an extra surprise to the marketing campaign that encourages target consumers to be aware of the product’s existence, connect, and use it.
Why is a Unique Selling Point Important for Business?
Check what are the functions of determining the following unique selling proposition :
1. Increase Sales
Many competitors are offering the same product or service category. Consumers are faced with many choices that make them confused.
A brand with a unique selling point means that it will be more prominent and easily recognized by consumers because it has advantages. USP helps consumers to make purchasing decisions and generate sales.
2. Determining the Brand Position in the Market
You can tell the core of the company with the USP, namely:
- The added value is offered in the product or service offered.
- What problems can be solved with the product or service?
This will also be in line with the company’s vision and mission.
3. Differentiate with Competitors
You have to spread the values of the company’s unique selling proposition. For example, about specific benefits or superior features that competitors do not have.
All of these advantages are the company’s USP that will make it different from its competitors.
- 13 Business Analysis Techniques and Their Importance for Business
- What is Brand Positioning? Definition, Function, Strategy, Examples, etc
- What Is Revenue Stream? Types, Examples, and Importance for Business
- What is Crowdsourcing? Definition, Benefits, Types, Examples & more
- Balanced Scorecard: Definition, Concept, and Perspective in 2022
4. Facilitate communication to target consumers
The marketing strategy will be carried out by communicating for whom this product/service was created and what is different from competitors. Highlight the advantages and disadvantages of products/services with other alternatives.
5. Instilling Consumer Trust
Consumers tend to be more confident and choose better and superior products. That reason motivates buyers to buy the product even though it may be more expensive than competitors’ products.
6. Forming a Marketing Strategy
Establishing a focused and opinionated USP will also help you design an appropriate and effective marketing strategy.
This will affect how you package your message, brand image, copywriting, branding, and other marketing-related decisions.
Effective Unique Selling Point Criteria
What makes your brand different from the competition? Not only must it be unique, but it must be more valuable and strong.
An attractive and effective USP must meet the following criteria:
- Assertive. It has to be more memorable than just the phrase “we sell high-quality products”.
- Focus on what consumers value. Products must meet or even exceed consumer expectations.
- More than just a slogan. A slogan is a way to spread the USP, but a slogan must also be able to convey the company’s message and focus on a point that competitors do not have.
What is Not Included in Unique Selling Point
This specific marketing strategy is not a USP:
- Discount a few percent.
- Free postage.
- 24/7 customer service.
- Cashback percentage.
- Strong return policy.
- “Our products are better”, “we provide better customer service”, “we have more experience”.
These are not unique factors or effective differentiators because your competitors can copy the strategy easily, even more than what you can offer.
Tips for Determining Business Unique Selling Points
Here are the steps to identify and define the USP of your product:
If you have a team, invite them to brainstorm together. Ask them what stands out or differentiates this business from competitors in its class.
The brainstorming session can go on many times to gather all the ideas. You can also involve your customers and ask their opinion.
2. Identify Target Consumers
A mistake that often occurs in businesses is promoting products/services without understanding the target consumers and what they need.
You need to identify who this product/service was created for. The rest, identify the target audience based on age, location, gender, income level, buyer persona, and other similar characteristics.
3. Competitor Analysis
Part of market research is to list competitors, what are their advantages, how they promote their products, prices, looks, weaknesses, and all the details.
You can check directly by trying the product, viewing social media pages and websites, marketing materials, and conducting surveys. Until you get a clear picture of your competitors.
4. Make a List of Strengths and Advantages
List all the strengths and weaknesses of your brand:
- What makes this product better?
- Is the selling price competitive?
- Is the target audience easy to get this product?
- What are the salient features of this product?
- What benefits or uses in this product are superior?
The point is that once you have identified the strengths of your product/service, you can market it to attract the interest and attention of your target audience.
5. Understand Weaknesses
Identifying product/service weaknesses is important so you don’t mention them in your marketing campaign. Every product has weaknesses and needs evaluation to improve its quality later.
6. Understand What Makes Your Product Unique
Having found the advantages and disadvantages of the brand, now you are looking for what makes it unique and different from competitors.
Something that does not exist in competitors but is needed or wanted by the target market. For example, your product focuses on:
- Healthy lifestyle campaign. If it’s a health product or supports a healthy lifestyle.
- Supports the welfare of nature, for example, by using environmentally friendly packaging.
- Classy and prestigious. Consumers who use your brand will be considered classy because the brand emphasizes luxury and exclusivity.
- Cool, playful, and young. When this product is designed specifically for enthusiastic young people.
7. Translate USP to Proper Copywriting
How all the USPs thought out can be translated into short clear and compelling phrases. This can be reinforced with the choice of fonts, color schemes, logos, and other parts of the brand identity.
How to Communicate a Unique Selling Point
There are many ways companies can communicate their USP to their target audience with these methods:
- Advertisement. In many available media: print media, radio, TV, etc.
- Social media. The company or brand has official social media to convey any campaign. This can be helped by being paid to promote with influencers and so on.
- Content Marketing. Creating viral or personalized content to convey USP and other company campaigns.
- Search Marketing. Improve website SEO and ranking on search engines like Google, to increase brand visibility and communicate USP and other messages/campaigns.
- Digital Marketing. The company has an online store or digital business. Presenting the USP as a tagline on the website page. Can also be distributed via online advertising.