USP means a Unique Selling Proposition

Posted on 09 June 2010

Why you need a USP

USP means a Unique Selling Proposition - it is one of the basics of effective marketing that has stood the test of time. It is more than "good service" or "good price" - it's all about knowing what it is that makes you different and special… and being able to specifically explain it to your customers. This is your Unique Selling Proposition - the thing that sets you apart from your competitors.

Every business needs a USP for its products and services. To stand out from the crowd you must be either in some way better, more attractive or cheaper than your competition.

So, what makes a successful USP?

A successful USP should be:

• Truly unique
• Exciting to your target market
• Something that will get people talking
• Something that cannot easily be copied

In a mature market this can be very difficult as most angles have already been covered. For owner managers of small operations it may come down to the individual involved - you may need to develop your own personal brand. Clarity on the following may assist you in identifying your own personal USP:

• Outline the specific problem you solve
• The type of clients you provide solutions for (your target market)
• What the results will look like (the benefits the client will get by working with you)

Most business people are aware of the concept of USP's, the difficulty lies in clearly identifying it and making it work consistently for your business.

Here are some of steps to help you define a USP for one of your products or services.

• List all the main features of the product or service. Your list should include features such as quality; service; delivery; price and functional or technical characteristics.

• Convert features into benefits - people buy benefits not features.

• Use a simple technique for converting features into benefits by using the words "which means that..." Therefore what the feature "means" to the customer is the benefit they will derive from it.

• Rank your benefits list in order of importance to the particular situation and prospect.

• Is the benefit unique within your industry? If there are no obvious differences between you and your competitors you can do the following.
-- Consider how your company scores against your competitors on those benefits that the customer considers to be most important. This analysis will reveal whether you have particular strengths that may be exploited in a similar way to a USP.
-- Consider how you can develop your product or service to deliver new benefits that are not provided by your competitors.

When you have defined a USP for each of your products or services you should decide how to effectively communicate it - both to your team and to your target audience. Integrate your USP as a prominent and consistent theme in all your marketing and sales efforts.

If you've not identified your USP - do it now!

Paul Doyle

Ology Business Coach

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