A unique selling point (USP) sets you apart from
your competitors and gives people a reason to do business with you. It’s a
winning differentiator that makes you the stand-out option.
In this post, we’re going to uncover why a
defined USP is key to success, how to create one, and how you can use social
proof to make your USP even more compelling and impactful.
What’s a USP?
A unique selling point, sometimes called a unique
selling proposition, is a short statement that tells the world why your company
is different and better than your competitors. The most effective USPs are
memorable, concise, and showcase the unique value that your customers can only
get if they buy from you.
Some of the world’s most well-known brands have
built their success on the back of a strong USP.
FedEx – “When it absolutely, positively has to be there overnight.”
The FedEx USP showcases two benefits in a short
and snappy slogan. You know your package will be delivered, and it will get
there fast. When FedEx started using the USP in the early 70s, it had a fleet
of 20 aircraft. Today, FedEx has the 4th largest fleet globally, generating
over $79 billion in revenue in 2020.
Domino’s – “You get fresh, hot pizza delivered to your door in 30 minutes or
less, or it’s free.”
Domino’s famous USP was developed on a key
understanding of the value it offers. Domino’s is not just a company that makes
pizzas. It’s a pizza delivery company.
Its customers want reliability and speed. The USP
highlights both of these benefits in a memorable and explicit guarantee. When
Domino’s introduced the USP in 1979, it had 287 stores globally. When Domino’s
changed the USP in 1989, the number of stores had increased to over 5,000.
Why Do You Need a USP
Creating a USP is one of the most important steps
in growing your business. It underpins all your marketing and sales initiatives
and is key to positioning your brand in the market.
Differentiators
A clear USP shows how your brand is different and
why your potential customers should choose you when making a purchase. Without
a USP, choosing between different products and services becomes arbitrary, and
the lowest-priced product usually gets the sale.
Customer Loyalty
When you deliver on the value you promise in your
USP, you increase the chances of a customer buying from you again. Each time
you deliver on the USP, the positive experience strengthens customer retention,
encourages brand advocacy, and inspires positive word of mouth.
Alignment
A strong USP is a foundation for your marketing
and sales initiatives. It shows that you believe in your product or service.
This makes it easier for your sales team to highlight your value and provides a
framework for your marketing team to ensure consistent messaging across your
digital campaigns and channels.
Define Your USP
We’ve covered why a USP is so important. But how
do you create one?
Market research is a vital first step. You can
only create a winning differentiator when you know the value you provide and
what your competitors offer.
We can break down market research into two
categories:
1.
Internal
What Value
Do You Provide?
Step into your customers’ shoes and think about
how your product or service helps them overcome the challenges they face.
The value you provide comes from the benefits
that your customers get by purchasing from you. Create a list of the top five
benefits you provide and why your solutions are important to your customers.
What Makes
You Different?
What can you offer that your customers can’t get
elsewhere?
Make a list of the things that make you different
from your competitors. Your product may be more reliable, cheaper, or have more
features. If you make your products from sustainable materials, you can
highlight your environmental credentials as a key differentiator.
It’s not just the features of your product or
service. A differentiator can be anything from customer service and price point
to innovation and branding.
2.
External
What Are
Your Competitors Not Offering?
You can’t highlight how your business is
different if you don’t know what’s already out there. Make a list of your
competitors, their USPs, and how they position themselves in the market.
Is there a gap you can target that your
competitors are failing to meet?
Take a deep dive into your competitors and how
they are perceived by your potential customers. You may find that a competitor
positions their product or service as the most reliable but fails to fulfill
that promise. If you can better meet those needs, you can position your company
as a more attractive option.
What Are
Your Customers’ Pain Points?
People don’t buy products and services. They buy
solutions to problems.
You need a deep understanding of your customers
and the problems they want to solve. Pain points are the symptoms of those
problems, and they can be a good starting point for your USP.
How does your product solve a problem and improve
the lives of your customers?
By highlighting a pain point in your USP, you can
show how you understand your customers’ needs and how your product or service
offers a solution.
For a more detailed guide on creating a USP,
check out our post 8 Steps Between You and an INCREDIBLE Unique Selling
Proposition.
Social Proof
Once you have your USP, it’s vital to deliver on
the promise you make. If you claim to be the fastest, make sure you are faster
than your competitors.
You can make your USP more compelling and
impactful by backing up your claims with social proof, including:
- Encouraging customers to leave
reviews on your website.
- Asking your followers to leave
reviews on your social media pages.
- Creating case studies showing how
your company has helped clients.
- Consider using video testimonials
on your site and social channels.
Using social proof to support your USP can be a
powerful driver for conversions – 84% of people trust user reviews as much as a
personal recommendation, and testimonials can increase average revenue per site
visitor by up to 62%.
The Power of Your USP
A clear USP helps you position your brand and
influence how your customers view your products and services. In an age where
somebody can pick up their smartphone and find ten companies like yours, a
winning differentiator is vital for cutting through the noise and getting
noticed.
If you need some help defining your USP,
differentiating your brand, or getting found by your ideal customers, it might
be helpful to have an expert
by your side.