USP (Unique Selling Proposition)

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What is a USP

What is a USP (Unique Selling Proposition)?

Definition: A USP is the key factor or characteristic that differentiates a company from its competitors. Online and offline retailers strive to clearly communicate their USP to shoppers in marketing campaigns, product descriptions, and all other customer touchpoints.


Three types of USP's that make a company stand out

Companies want to sell their products or services as the all-around best option, but ultimately most proposals fall into one of three categories. Keep in mind that companies are not limited to just one of these, although it can be difficult to effectively communicate multiple proposals at once.

Each type of offering is focused on a different value, and what is important to customers should determine which offerings a company focuses on. Establishing a buyer persona helps uncover which offerings are effective.


1. products

Establishes the company's claim as a provider of a product or service that is superior to the services of its competitors. For example, a company that sells rare used books may differentiate itself by offering unique, desirable products that cannot be found elsewhere.

Target value: Quality


2. prices

Cost plays a role in every purchase decision, but it is often the key selling point when selling to comparison shoppers. Price-based offers do not diminish their quality, but emphasize value. This appeals to customers who are looking for a reason to spend less.

Target value: Affordability


3. support

Some customers are looking for security and reliability when they make a purchase. Product and price clearly matter, but what can really sell them is reliable support. This includes return policies, technical help lines, extensive online resources, or a combination of these factors. A support-based offering is the sale of an assurance that the customer will be taken care of no matter what. Support is especially important for merchants who maintain an ongoing relationship with their customers, such as those with subscription services.

Target value: Social connections


How to define your Unique Selling Proposition

The process of determining a clear value proposition depends on a company's situation.


1. innovative or emerging companies

New businesses need to establish their unique selling proposition as early as possible - and communicate this to customers as soon as a connection is made. Making a good first impression and demonstrating your USP as soon as a shopper lands on your website or views a marketing asset is critical to capturing their interest.


2. established business

Companies with proven experience have a slight advantage, as they have easier access to Social Proof points such as testimonials and customer reviews. As companies collect more data about who their customers are and what's important to them, it's entirely possible to tailor a unique selling proposition to the results.

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What does U.S.P. mean? arrow icon in accordion
U.S.P. stands for Unique Selling Proposition and literally means unique selling point. It is a feature or special factor that sets a company or product apart from the competition and makes it a preferred choice.
When was U.S.P. developed? arrow icon in accordion
U.S.P. was originally developed in 1935 by Rosser Reeves, an American advertising executive.
Why should a company have a U.S.P.? arrow icon in accordion
A company should have a U.S.P. to stand out from the competition and create a unique position in the market. This can help a company attract new customers and strengthen its brand.
Where is a U.S.P. used? arrow icon in accordion
A U.S.P. is usually used in advertising to promote and persuade customers. It can also serve as the basis for developing products and services to meet the needs of customers.
What are some examples of U.S.P.? arrow icon in accordion
Some examples of U.S.P. are "cheapest price", "highest quality" and "best customer service".
What is an effective U.S.P.? arrow icon in accordion
An effective U.S.P. is a factor that makes the company attractive and unique to customers. It must be demonstrable, relevant and credible.
How is a U.S.P. developed? arrow icon in accordion
A U.S.P. can be developed in several ways, including market analysis, customer surveys, SWOT analysis, and competitor analysis. These methods can help identify the needs of the target audience and the factors that make the company unique.
How is a U.S.P. communicated? arrow icon in accordion
A U.S.P. is usually communicated using advertising copy, ads, videos, brochures, and other promotional materials. It can also be used in corporate presentations and materials to reinforce the brand's image.
Can U.S.P.s be changed? arrow icon in accordion
U.S.P.s can be changed over time to meet new market demands. However, it is important that this is carefully and strategically planned so that the U.S.P. remains relevant and credible.
Can U.S.P.s be protected? arrow icon in accordion
Yes, U.S.P.s can be registered as trademarks or patents to protect against imitation by other companies. The use of a copyright or trade name can also protect a company from imitation.

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