Identifying and focusing on the unique benefits is crucial to stand out from the competitors. However, every market is rapidly getting crowded with new players most of which have similar offerings. Even if it is getting harder and harder to achieve, you must find an aspect of your business that is superior to your competitors to survive. You can make use of a simple framework called the Unique Selling Proposition (USP), also known as Unique Selling Point.
What is the Unique Selling Proposition (USP)?
USP is what differentiates your business from your competitors. It points out the benefits that no player but your business can offer to customers (see the figure below).
The idea was originally developed in the 1930s by Rosser Reeves, an American advertising executive, who emphasized the importance of delivering your unique selling proposition to your customers. Since then, the approach has been widely used by marketers.
Your USP could be based on several factors such as quality, price, functionality, durability, etc. For instance, you might be offering the lowest price or the highest quality within your industry.
Even though the idea might seem easy, it can be difficult to identify and uncover your USP in the first place. To figure out what your USP is, the best way is thinking from the perspective of your customers. Elaborating on these three points will give you an idea:
- Using Empathy Mapping for putting yourself in your customers’ shoes.
- Understanding why your customers prefer your product/service to your competitors’.
- Discovering what motivates your customers when making buying decisions.
You can see our previous articles which will help you define USP:
- Six Paths Framework to achieve customer insight
- Customer Journey to relieve your customers’ pains
- Buyer Persona to picture your ideal customer
- Perceptual Mapping to visualize your competitive position
Why is Unique Selling Proposition Important?
Identifying the USP provides you with a clear definition of your positioning within the industry. Furthermore, it specifically states the aspect of your product/service that is meeting the needs of your customers better than any of your competitors.
By doing so, you will be making the buying decision process easier for your customer because they will exactly know what you are offering.
Besides, after identifying your USP, you can focus your efforts and resources on things that are more likely to bring returns.
Finally, it is beneficial in making all employees have a shared goal by explicitly communicating the aspect of your business everyone should focus on.
Conclusion
To triumph in an environment where there are numerous competitors and many products or services that are almost homogeneous, your product or service needs to have a feature that differentiates it from your competitors. Identifying a USP will enable you to achieve this. After identifying your USP, you should devote your efforts to build on this point.
Contact us to determine where your competitive advantage lies and how to exploit it.
