What is a Unique Selling Proposition (USP)?
A Unique Selling Proposition (USP) is a marketing term that enables a company to persuade customers that its products or services have greater benefits and give better value than those of competitors. In effect, a USP gives companies a chance to “toot their own horns” about what makes their products or services special.
How a Unique Selling Proposition (USP) Works
It distinguishes a company's brand from its competitors
A Unique Selling Proposition (USP) gives companies the opportunity to feature their best attributes. It also declares what companies stand for by highlighting their special position in the marketplace. USP features all the benefits that make a company stand out over its competitors. By clearly showing what a company stands for, it increases opportunities for higher profits, a stronger customer base and an easier, more convincing way to sell both products and services.
It helps customers make better buying decisions
With a good USP, customers fully understand why your products or services are superior to your competitors'. For example, if you are promoting the highest quality fences for homeowners, your customers might be open to discounts but these customers are really shopping for the great quality for which your company is known. Customers with less expensive homes may seek cheaper fences elsewhere because saving money is the highest priority. On the other hand, your customers know that by paying more for a quality fence in the short term, they will save money in the long term because the fences will be more durable and require fewer repairs or replacements. By highlighting your unique selling position as making and promoting fences constructed of the highest quality materials; customers understand the value you offer.
It encourages customer loyalty
A successful unique selling proposition develops customer loyalty because it enhances good feelings and positive outcomes about your products and services. Should a problem arise, customers may give a company leniency because the company has demonstrated a strong commitment to keeping the customer happy by addressing any areas where the brand falls short. This loyalty drives deep customer satisfaction, higher revenue and more referrals.
Why a Unique Selling Proposition is Important
It helps your company break through the clutter
Amid all the social platforms and media outlets for selling products and services; it's easy for a company's distinctiveness to get lost in the noise. USP helps a company define itself by helping the public focus on the value of a company's goods and services over that of its competitors. USP answers the fundamental question, why is the business special?
It is supported by good customer research
By conducting thorough research on your target market, you can find out what products and services your audience really wants. The research should bear up under close examination by the customer as to why your company has lower prices, provides a better return policy or has better quality products. Once you know what is important to your target market; you can assemble a marketing plan that shows why your company provides the best value to the customer.
Its products and services must be flexible
.Things change. Successful businesses are adaptable to changes in technology and popular culture. If your USP is only based on current conditions, your company may not be able to weather the bad things that may occur outside of your control. A good USP helps a company's brand stand the test of time.