USP (unique selling proposition)

What is a Unique Selling Proposition (USP)?

A Unique Selling Proposition (USP) is a key and advantageous promise that you make to your customers, which your competitors cannot or can hardly replicate. A well-formulated USP helps answer the important question: why should customers choose you? For example, the USP of the Patreon service lies in providing a steady income for creatives through a community of fans.

Why does a business need a USP?

A Unique Selling Proposition allows a company to focus on its key advantages. All marketing communications are built around the USP, helping to stand out against competitors and attract more customers. Additionally, the USP serves as a vector for further development, which the company should strive for to meet its promised commitments. Let’s explore the key aspects related to the importance of a USP.

Defining a Development Strategy

The USP helps choose the most promising direction for business development. For example, Domino’s focused not on the taste of their pizza but on delivery speed, claiming, “We will deliver hot fresh pizza to your door in 30 minutes — or it’s free!” This promise became the foundation of their business model and led to the establishment of small kitchens near residential areas to meet delivery times.

Brand Positioning

A clearly formulated USP helps a business emphasize its strengths when interacting with its audience. This increases brand recall and contributes to sales growth. For instance, Colgate's advertisement in 1948 claimed that their toothpaste “refreshes breath while you brush,” helping the company stand out in the market.

Effectiveness of Marketing Communications

The USP helps focus marketing efforts on the main aspects, making them more effective. Companies can use the USP formulations across various channels, from outdoor advertising to social media. For example, Death Wish Coffee uses the USP “The strongest coffee in the world” across all its platforms, creating a unified and powerful image.

How to formulate a good USP?

To create a compelling USP, it should be:

• Specific, without generalizations;
• Beneficial for customers;
• Unique, different from competitors' offerings.

Here’s a brief four-step guide to formulating a Unique Selling Proposition:

1. Study the audience and competitors. This will help you focus on customer needs and find gaps in their positioning.
2. Make a list of your advantages. Consider all details: unique product quality, outstanding service, or access to a community.
3. Match audience needs with your advantages. Formulate a short text that reflects the essence of your USP.
4. Condense the text into 1-2 short phrases. Ensure that it does not echo competitors' messages and is memorable.

Examples of Quality USPs

The best way to understand how to create a good Unique Selling Proposition is to be inspired by examples from successful companies. Here are a few striking USPs:

• Saddleback Leather: “They will fight over them after your death” — emphasizes the durability of its products.
• VkusVill: “Here, healthy is delicious” — breaks the myth that healthy food cannot be tasty.
• SoundCloud Repost: “Make a living from your music” — focuses on supporting musicians in their careers.
• Signal: “Everything you’ve been waiting for from a messenger, with a focus on privacy” — stands out from competitors due to its security.

These examples show how a well-formulated USP can help companies stand out in the market and attract customers.