The Unique Selling Proposition (USP), sometimes called the Unique Selling Point, is the single feature or benefit your product, service or brand provides that makes it different and better than others in the market and therefore most appealing to a sizable segment of the buyers.
You cannot overstate its importance. A business must communicate something specific to their consumers for them to be interested in purchasing. Lacking a USP leads to a business seen as average in the market, without a genuine reason to be chosen among its competitors. It may excel at many things and even offer more than the competition. But without focus, the consumer will never know and will choose to purchase the competition.
The USP also focusses the energy of the organization in continuing to become better at this single, valuable offering, thus protecting it from others who will try to offer this benefit. Organizations without a well defined USP often chase many buyers with different needs and end working harder and having little payoff.
Let’s take apart the important parts of this definition.
Single feature – What makes the business different? What specific product feature or attribute does a product have that makes it appealing?
Single benefit – What important problem does the business solve better than others? How does the consumer feel after you have solved their problem?
Don’t confuse features and benefits. They are different. Several definitions of USP use these terms interchangeably. They are not the same.
For example Walmart had a slogan for years, “Always low Prices”. That is a feature of their offering. They changed their slogan to “Save money, Live Better”. Those are 2 benefits. They needed the change when their feature was no longer unique. Other retailers beat them at specific prices (e.g. dollar stores).
Benefits come in many forms. Most consumers are looking for a specific end benefit to them. Convenience, trust, dependability, affordability work well.
But in a crowded marketplace it is best to be as specific as possible.
A simple example for a sandwich shop with low prices:
- Feature – our sub shop is the home of the $4 foot long sub sandwich
- Benefit – you get the best value for your money.
- Tells people that the quality may suffer, but you can afford to get more for your family to eat,
However, if you have the best subs in town, consumers will be willing to at least consider paying a bit more than they should.
- Feature Voted the best tasting sub sandwiches in the greater Philadelphia area.
- Benefit – uncompromising taste
Offering many features and benefits might feel good to the business owner, but it leads to confusion for your customers. For example, a pizza shop may say they have the best pizza in town, at the lowest cost, delivered to you fast. Who are they appealing to? The consumer will doubt they have the best pizza if it is the lowest price. Also, price conscious shoppers will doubt they have the lowest cost if you say you have the best product. Also, great tasting pizza freshly made, which takes time. Fastest pizza to your door suggest otherwise. These three features together end up not appealing to anyone very well.
Unique among your competitors
Don’t be generic and don’t offer what others already offer in the market. Ask whether the USP differs from others and solves a need. Stating features such as “fast and friendly service” are generic to most services, for example. Better to say “on time or it is on us”. Most services won’t and cannot be so specific. USP should state a benefit that your competitors do not perform well. Many businesses compete in markets with many competitors because there is already an established market with willing buyers.
In the market in which you compete
The market should be defined in a way that make sense for your business. Consider a geographical market. For example a local car dealership or restaurant are competing for a broad group of people in a limited area. However, an on-line service with a national or global potential consumers should define their market based on the consumer group they want to attract. In business to business selling, the market is specific buyers at prospective organizations.
One Good Example of a well built USP is Sweetwater Music
From personal experience, I will focus on a company called Sweetwater Music. (I have no vested interest in promoting them.). They compete in a crowded online space selling musical equipment and pro audio (speaker systems, recording equipment and software and stage equipment).
My hobby is playing guitar and singing in a small local rock band as well as at my church. I look for gear that will fit my need as an active guitar player in different performing situations. There are many ways to buy musical and pro audio gear. Everything from Amazon to giant retailers like Guitar Center and Sam Ash. All have similar prices, and massive selections of products and fast shipping. It’s the baseline of competing in that category. I have purchased something over the years from most of them.
There are differences among retailers based on exactly what I want. I am looking for the right gear tailored to my needs. I am unfamiliar with a lot of the most recent technology and find myself wanting to try new things for the situations where I play. I am afraid that I will buy the wrong equipment that doesn’t fit the playing situation or will be overly complicated to use.
The distinguishing feature of Sweetwater Music for me is the sales engineer. Once you’ve made a purchase, a sales engineer will call to see if the gear is working. No matter how big or small. I bought a small clip for my iPad that I mount on my microphone stand. A small $30 purchase. The day after it arrived, a sales engineer called to see how it was working and talk about what I was using it for. Another time, an engineer called to let me know the product I ordered was going to be delayed a few days and after some discussion, he informed me that there was a better and more inexpensive package available. This guy is on my phone now. But I buy only from Sweetwater Music. Will I pay more than other places, probably not since all retailers are offering items at similar prices, but its not the reason I buy from them.
Here is my take on their specific USP:
- Feature – Sales engineers with extensive knowledge and following up.
- Benefit – Purchase with confidence – I am not buying the wrong gear.
Here is the statement on their website which I think sums up their USP well:
“Since 1979, we’ve turned millions of music makers like you into friends by delivering uncommon service and unparalleled expertise. Our dedication has helped Sweetwater become the #1 online retailer of pro audio and music instruments in the United States.”
To build your USP, focus on answering:
- Who is your target market – the person who you want to connect with?
- Who is your competition – where do they excel?
- What is the Consumer issue when shopping in this category? What makes it hard to purchase items in the category?
- What is the single functional attribute you provide?
- What is the emotional benefit of this single attribute you provide?
