Why Your Business Needs A Unique Selling Proposition
In today’s competitive market, having something that sets your business apart is essential. Defining your company’s Unique Selling Proposition (USP) is key to marketing your business and distinguishing yourself from your competitors.
What Is A Unique Selling Proposition?
A Unique Selling Proposition (USP) is an idea or feature of a business that is provided as a reason why your product or service is different and better than that provided by your competition.
Examples Of Unique Selling Propositions
A great example of a Unique Selling Proposition was Domino’s 30 minute guarantee. This promise stated that if a pizza wasn’t delivered in 30 minutes or less the pizza was free. Domino’s didn’t promise to deliver the best tasting pizza, the healthiest pizza or the one with the most toppings. They instead focused on having the fastest delivered pizzas.
Toms Shoes is another company with a great Unique Selling Proposition. You can purchase shoes on Amazon, ASOS, eBay and from hundreds of other websites. With so many options standing out can be incredibly difficult. Tom Shoes has achieved this by giving a new pair of shoes to a child in need for every pair that you purchase.
Why You Need A Unique Selling Proposition
A USP is critical for sustaining healthy profit margins. In the example above Domino’s did not need to provide the cheapest pizzas and Tom’s doesn’t have to stock the cheapest shoes. If they have a strong USP they can charge premium prices for their products without necessarily losing customers.
A USP is also critical for marketing and branding a business. A USP is a way of immediately showing customers why a business is different to their competitors and a better choice to do business with.
Having a Unique Selling Proposition also allows a business to develop customer loyalty and increase retention. When a business provides something that is unique and of value, customers will not be able to get it elsewhere.
Losing Your Unique Selling Proposition
One of the dangers of a unique selling proposition is when you lose it. Recently Walmart has started to experience this problem. In the past their USP was that they had the lowest priced products. But, with the proliferation of Dollar Stores this is often no longer the case. Many of their bargain shoppers are now switching from Walmart to the Dollar Stores. Because Walmart has primarily distinguished itself on price, if it loses this USP, much of the value in shopping there is gone.
How To Create A Unique Selling Proposition
In order to create a unique selling proposition a business must understand what motivate their customers to buy. It is a mistake to assume that customers always buy on price. As the Tom’s example illustrate successful businesses can be built even on altruistic motivations. Some of the factors that might motivate a customer to buy include desire for status, convenience, and atmosphere that’s compatible with their existing values and service.
Understanding what makes a customer come back time and time again is the secret to developing a great unique selling proposition.
A unique selling proposition doesn’t mean that you must have a unique product. You don’t even need to have the best product. McDonald’s doesn’t make the world’s best hamburgers but they are still an incredibly successful business. What you do need to have is a way of providing unique value that customers simply can’t get anywhere else.