GETTING STARTED
What is a USP? and why your business needs it?
5 min. read
Jan 24, 2023
Business is getting competitive, it’s always been competitive but it’s more so now than ever. So, every consumer very often asks- why this product? Why buy this over that?
That's where your USP (Unique Selling Proposition) comes in - a well-defined and effectively communicated USP can be the key to differentiating your business from competitors and attracting and retaining customers. It works to align your marketing goals towards a focus that successfully sets your products apart in your industry landscape.
But what exactly is a USP, and why is it so crucial for businesses in 2023?
In this article, we'll explore the concept of a USP, how to define it, and how businesses can use it to their advantage in the coming years.
That's where your USP (Unique Selling Proposition) comes in - a well-defined and effectively communicated USP can be the key to differentiating your business from competitors and attracting and retaining customers. It works to align your marketing goals towards a focus that successfully sets your products apart in your industry landscape.
But what exactly is a USP, and why is it so crucial for businesses in 2023?
In this article, we'll explore the concept of a USP, how to define it, and how businesses can use it to their advantage in the coming years.
What as a USP?
USP stands for Unique Selling Proposition, it’s a statement that communicates what sets a business apart from its competitors and why customers should choose it over other options.
It is a clear and concise message highlighting the unique benefits that a product or service offers. It has often been used as a marketing tool to attract new customers and differentiate a business from its competitors.
A USP is not the tagline of the company but the tagline encapsulates the USP of a company.
It is a clear and concise message highlighting the unique benefits that a product or service offers. It has often been used as a marketing tool to attract new customers and differentiate a business from its competitors.
A USP is not the tagline of the company but the tagline encapsulates the USP of a company.
How to define your USP?
Your USP is what makes your product or service unique and valuable to your target audience, and it's the key to standing out in a crowded market. But how do you define your USP?
It all starts with understanding the product and the need gap that it fills. By identifying what sets your product apart and the specific need that it meets, you can create a compelling USP that resonates with your target audience and drives sales.
Below are some steps you can take to define your USP:
It all starts with understanding the product and the need gap that it fills. By identifying what sets your product apart and the specific need that it meets, you can create a compelling USP that resonates with your target audience and drives sales.
Below are some steps you can take to define your USP:
- Identify your target audience: Define your target audience and understand their needs, pain points, and desires. Conduct market research, survey your existing customers, and analyze your competitors to gain insights into what your target audience wants and what they're missing from existing solutions.
- Analyze your competition: Study your competitors to identify what they're doing well and where they fall short. Look for gaps in the market that you can fill or areas where you can offer unique value that keeps you apart from the competition. A good example of this could be a product variant you offer that no one else does.
- Define your unique benefits: Identify the unique benefits that your product or service offers that your competitors can't match. Consider the features, functionality, quality, pricing, convenience, or other factors that make your product or service stand out.
Types of USP propositions
Businesses can use various types of USP propositions to their advantage.
For price-sensitive customers, offering products or services at a lower price than competitors can be a powerful draw. Alternatively, a quality-based USP can appeal to customers willing to pay more for superior products or services.
Convenience-based USPs that offer faster or more convenient solutions can appeal to busy customers who value time. For businesses that pride themselves on innovation, a unique and innovative USP can help them stand out.
One type of USP proposition is a product-based USP, which focuses on the unique features or benefits of the product itself. This type of USP is often based on an underserved need in the market that the product meets.
Finally, exceptional customer service or support can be a crucial differentiator in a highly competitive market.
For price-sensitive customers, offering products or services at a lower price than competitors can be a powerful draw. Alternatively, a quality-based USP can appeal to customers willing to pay more for superior products or services.
Convenience-based USPs that offer faster or more convenient solutions can appeal to busy customers who value time. For businesses that pride themselves on innovation, a unique and innovative USP can help them stand out.
One type of USP proposition is a product-based USP, which focuses on the unique features or benefits of the product itself. This type of USP is often based on an underserved need in the market that the product meets.
Finally, exceptional customer service or support can be a crucial differentiator in a highly competitive market.
Examples of USPs
Here is a curated list of examples of USPs:
- DeBeers: "Luxury and status forever" – DeBeers USP is their monopoly on offering the highest quality diamonds across the world, and the long-lasting nature of a diamond.
- FedEx: "When it absolutely, positively has to be there overnight" - FedEx's USP is its fast and reliable delivery service, which appeals to customers who need time-sensitive shipments. The current slogan that Fedex uses is “The world on time”, echoing their USP.
- Airbnb: "The ability to provide travelers with a unique and more personalized experience" - Airbnb's USP is its platform that allows individuals to rent out their homes or apartments to travelers, offering unique and personalized accommodations at competitive prices.
- Colgate: “Improve mouth health in 2 weeks”- Colgate’s USP is offering its consumers the ability to improve their mouth health in an affordable way in just 2 weeks.
- Head & Shoulders: “Clinically proven to improve your hair”- Head & Shoulders heavily relies on their clinically proven products to market their brand. This shows their USP of being a product that is scientifically
- Bombay shaving company: “Comfortable grooming for all men”- A company founded on a mission to provide luxurious and comfortable grooming for men, their USP is based on focusing on an ignored segment in the grooming and beauty market.
- Mamaearth: “Toxin free and chemical free products” – A business that has focused on selling organic and toxin free products to their customers. The business has leaned into this narrative to push out its marketing strategy
Wrapping Up
A USP is a crucial factor in distinguishing your business from competitors and attracting customers. In 2023, having well-defined and online selling USPs will be more critical than ever in a competitive business environment. It's essential to identify your unique strengths and benefits and use them to create targeted marketing strategies to engage your target audience and drive conversions
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