May 22, 2021
Unique selling proposition: Why you need one for your business
Maybe you started your business to do more of what you love doing. Maybe it’s because you want the freedom to earn as much as you can and on your terms. Or, it might be a combination these. Whatever the reason, to succeed you’ve got to create a unique selling proposition – or USP – that will make you stand out among a sea of competitors.
What is a unique selling proposition? It’s the distinct, appealing value proposition that leverages your strengths and sets you apart as different. For example, the tagline, “the milk chocolate that melts in your mouth, not in your hand” tells you exactly why M&Ms is a unique (and preferred) choice among all the other packages of candy on display.
Here’s another: years ago, FedEx presented its USP through the slogan, “The World on Time.” But then they swapped it to: “When it absolutely, positively has to be there overnight,” which is a much more precise and compelling proposition for consumers.
When I’ve asked business owners, “What is your business’s unique selling proposition?” it always concerns me when they say, “I don’t know.” Or, when they offer a non-descript version of what they offer and that doesn’t suggest anything unique. “Just buy from me” isn’t a unique selling proposition!
The bottom line is if you don’t identify exactly what it is that you do or sell that is superior to your competition, your customers won’t have any motivation to buy your product or service.
How to create a unique selling proposition
Figuring out your unique selling proposition can feel like you’re trying to grasp thin air. Stay with me here. There are ways to figure it out.
- As with the few examples above, study how other businesses set themselves apart, particularly your competitors (who, by the way, may be struggling with nailing down their USP!)
- Ask fellow business owners what primary advantage they believe they offer over their competitors’.
- Ask fellow business owners who are acquainted with your business what they perceive your primary advantage to be over your competitors’. The answers may surprise you – and provide valuable insight into how you need to structure or restructure your USP.
- Think about what you do, what your competitors do (and don’t do) and how you can do it better.
- Think about the one need, niche, or gap that you do or can consistently fill.
Ways to differentiate with a unique selling proposition
Your unique selling proposition needs to create both real and perceived advantages in the eyes of your customers. To help get you started, think about whether you want to position yourself as offering:
- the best or broadest selection
- the lowest price
- fast service
- quality at an affordable price
- convenience
- personalized service
- top-of-the-line products or services
- solving a unique problem
- ongoing reliable support or education
- a unique guarantee or skill set
Your unique selling proposition could focus on just one of these or comprise a combination of any of the above. What matters is that your USP clearly differentiates you from your competitors and that you can consistently fulfill the promise you’re making.
Clarity is key in your unique selling proposition
Refining and finalizing your unique selling proposition can take time. Here’s something I recommend: write your USP down in one paragraph. Then refine that paragraph again and again, removing or clarifying anything that feels vague.
For example, the word “quality” means different things to different people. Edit out anything that feels “fuzzy” or too general. Keep refining until you get a statement that’s clear, crisp, and representative of the very best promise you can offer your customers.
Your unique selling proposition should have a sense of immediacy and absolute clarity. Anyone who encounters your USP should immediately understand the promise you will follow through on if they buy your product or service (think back again to M&Ms and FedEx).
Get the word out about your unique selling proposition
Now that you have a unique selling proposition, you need to communicate it – everywhere!
Every single piece of marketing you put out there must include your USP in some form. Your USP also can be communicated through a tagline that shows up in all of your marketing. If you’re tagline is short, it could even be incorporated into your logo.
Marketing content, sales calls or presentations, short elevator speeches, and advertising in any form all present opportunities to reinforce your unique selling proposition. Always show customers why it’s in their best interest to take advantage of your USP (instead of your competitors’).
Sometimes the story behind your brand can be integrated with your unique selling proposition. Is there a life or professional experience or problem that motivated you to start your business? Use that in your proposition!
How a unique selling proposition impacts your business
Even if you’ve been in business for awhile and have been operating without a clear unique selling proposition, it’s never too late to start. Once you go through the process of clarifying how your product or service is clearly different from your competitors, your business will grow more quickly.
Remember that an effective USP isn’t going to resonate with everyone. It will, however, attract customers who really want what you offer.
An effective unique selling proposition makes sales easier because it puts you on your customer’s side. What you sell is appealing and exciting to the audience who connects with your USP.
Think about how you felt when you found a product or service that you were excited to buy because you knew it was finally going to solve a problem for you. That’s the feeling your USP should create in your ideal customers. Happy, excited customers return to buy more and refer others to you.
If you don’t have a unique selling proposition already, create one! And if you do have one, take a critical look to see if it’s working as hard as it can for you. If not, get to work revising it. With a powerful USP that you use everywhere and with a commitment to consistently live up to its promise, you position yourself to level up for success!
Do you have questions about how you can succeed in your business and accelerate your journey toward reaching your goals? I invite you to learn more about From Startup to Success coaching packages. Begin with a no-cost 30-minute consultation to discuss where you are with your business and where you want to go.
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