What is a unique selling point? Put simply, your business model could be lacking clarity and sense of direction without a clear focus on unique selling points. Read on and we’ll explain how to make sure you aren’t falling into this trap.

Distinguishing your brand from the rest is crucial. This is where understanding your unique selling point (USP) comes into play. A USP not only sets your product or service apart from its competitors but also becomes the cornerstone of effective marketing strategies.

In this comprehensive guide, we delve into the meaning of a unique selling point, exploring its vital role in differentiating your brand, attracting and retaining customers, and ultimately driving success. Whether you are a seasoned business owner or an entrepreneur, mastering the art of your USP is an essential step in carving out your niche in the marketplace.

In short, it explains what a particular product can offer that other products from competitors cannot.

What Is a Unique Selling Point?

The USP must be something that is meaningful or important to consumers. Marketers use unique and competitive selling points to attract clients and to build their brands.

What is a unique selling point featured

Marketers understand that it is not possible to convince other people to sell their products before you have convinced yourself. This is especially so when you are dealing with products and services that are highly competitive.

It is almost impossible to find a business whose products or services are completely unique. Therefore, it’s important to convince prospective customers that they should choose your products over competitors’.

In other words, you need to know what sets your product apart.

Just because the market for whatever products you are selling is crowded doesn’t mean you can’t have unique services or products.

By pointing out the specific features that make your products special, you increase the chances of attracting clients.

What is a unique selling point venn diagram
Your unique selling point should differentiate your products from your competitors. Image credit: TractionWise

How to Use Your USP to Your Advantage

You need to find a unique selling point that can work well to your advantage. To do so, it is important to analyse the unique selling points of competitors and to understand what clients want. Look at what they sell beyond their specific products.

One beauty products company, for example, could claim to be selling confidence.

A car dealership could claim to sell luxury or class. It is important to find out exactly what competing businesses claim to sell and tailor your own unique selling point to be competitive.

Your unique selling point could be based on the four Ps of marketing. These are:

  • Product features,
  • Product pricing,
  • Placement (location and areas of distribution)
  • Promotional strategy.

Any of these could be used to give a business advantage to competitors.

This does not mean that a business needs to use all the four Ps of marketing to have a successful unique selling point.

They may choose to use just one or two which will still work just as well. Some generic USP examples may include – ‘Highest quality in the market’, or ‘Lowest price in the market.’

Why Is Having a USP Important?

There are many benefits to figuring out your unique selling point early on. Every day wasted without something that sets you apart from competition means less customers. Less customers means less revenue, and eventually failure.

In the end, everyone wants to see their ideas through to success while making a lot of money in the process, and a unique selling point will do just that.

Here are some of the key ways that having a clear USP can boost your revenue.

1. Focus Leads to Excellence

When someone is feeling ill, they don’t just go to any doctor and get the treatment they need. They usually go to a hospital, then see a specialist. If a patient requires surgery, it has to be a specialist in a specific field according to the patient’s needs.

Why is that? Because the human body is a complex system, and to perfect a practice you need to focus on as small an area as possible. The same rules apply to business.

The more closely your product and messaging align with your customers needs, the easier you’ll find it to shift units.

2. Use Your USP to Inspire Trust

Not only is having a unique selling point better for you, it also inspires customers to trust you more. The average person knows that no one can do everything at once.

If you claim to have the best in everything, then chances are you’re probably lying as far as they’re concerned. This doesn’t mean you can’t be known for more than one thing. Pizza Hut for example, aside from pizza, are known for their breadsticks, and chicken wings.

However, they stay true to their core product – pizza.

What is a unique selling point good and bad examples
The strongest USPs are often the most tailored to your customers’ core problems. Image credit: FireFlies.ai

3. Attracting More Customers

You might be thinking that appealing to a larger crowd with different needs is better. If you shoot at more targets, you’re more likely to hit something, right?


It’s much better to focus your efforts on one target and hitting that bullseye. When you’re running a business, it’s just the same, you want to strike gold. You want to be the best at what you do.

After you’ve made your name as a leader and specialist, opportunities to hit more targets will present themselves. Eventually, it’s much more profitable and effective to attract more customers in a single segment.

How To Find Your Unique Selling Point

A good unique selling point can help companies to make clear their unique position. It makes it easy for customers to understand what a business is about and to differentiate it from competitors since it is a part of their brand.

A unique selling point basically tells you everything that a business believes in and hopes to achieve in just a single sentence.

Since there are usually many similar products in the market, it is easier for customers to pick one whose unique selling point meets their needs. For the employees of a business, it makes it clear what exactly they are working towards.

There may be absolutely nothing special about the business you offer but a good unique selling point may make all the difference.

Consider the following steps to come up with a good unique selling point.

Stand In Your Customer’s Shoes

It’s common for marketers to get so caught up in their strategies that they end up forgetting whose needs they are trying to meet. Just because you love something about a product or service does not mean your customers will.

It’s important to take some time and study the needs and expectations of your customers.

Put yourself in their shoes.

The first step is to write a brief description of your target market. A good way to do this is using representative buyer personas. Write down what problem your products hope to solve and why they should choose them over competitors.

If, for example, you are trying to sell beauty products for women, you would need to ask, ‘What kind of women am I targeting?’

Why would someone want to buy beauty products? What do they expect from my products? And what exactly are they hoping to accomplish?

What are my competitors offering that I’m not? What are they not offering that I can offer? How can my USP be helpful?

Do not just make assumptions. Conduct a market survey and find out what you need to do. Once you know the specific things that your customers want, you can come up with a unique
selling point that appeal to them

Find Out What Your Customers Like About Your Product

You need to know what competitive advantage your products have over those of competitors.

Get this information from your loyal customer. The beauty products entrepreneur, for example, may find that their products are less expensive or maybe they are milder to the skin.

By knowing what makes your products unique, you get your unique selling point. It may also help you to improve on areas that aren’t doing very well.

You may also ask your customers to list the features that are most important to them, and design your offering around this.

Learn The Buying Behavior Of Your Customers

You need to know what motivates your customers’ buying behavior. Do not just assume that it is the traditional demographic factors like age, sex, or income. It is usually a lot more than that.

Still in the beauty products company, an entrepreneur may know that 80% of their clients are aged between 16 to 35.

However, that does not explain why certain people buy the specific beauty products that they do. They could be motivated by other factors such as glamour and peer influence. People do not always buy what they need.

These days, people often buy into a lifestyle or a set of brand values.

Once you understand what makes people buy what they buy, you can come up with a unique selling point that attracts them.

What is a Unique Selling Point? USP Marketing

USP marketing is more than coming up with a line to describe what you offer. There are various steps that you can take to make it more successful.

They include the following;

Understand Your Target Market

As with all marketing techniques, you need to conduct research on your target market first. Find out what they need, what inspires them to buy the products and services that they do and observe them for patterns.

After all, if you don’t know what you’re aiming for, you’re wasting your time.

If you know your audience well, then you are better suited to cater for their needs. If you are just starting out your business and you do not have many clients to research on, you can conduct a research on other buyers within your target market.

Make Your USP Compelling

Your USP will probably be your first way to communicate with clients. Make it unique to your business. Do not try to copy other businesses, especially competitors as you may just end up confusing prospective customers.

You need to find out what exactly makes your business special and focus on it.

Do not make it a broad, boring line. Saying ‘Good beauty products,’ for example, isn’t enough. You need to be more specific. You can say, ‘ We sell the best quality makeup with a sun protection factor of at least 30’.

Ensure that it fills gaps left by competitors, and that it is convincing. Your unique selling point should be the first thing that your customers remember about you. It doesn’t necessarily have to be your slogan.

It just needs to help you increase profits and keep your employees motivated.

Emotional Selling Proposition Or Unique Selling Proposition?

Your emotional selling proposition, (ESP) refers to the specific feelings that consumers associate with certain products. A certain car, for example, could be associated with luxury. Marketing communication that uses ESPs puts more focus on emotions than logic.

For example, a beauty company using emotional selling propositions would use phrases such as, ‘Feel confident.’ Marketers understand that most people base their purchases on both logic and emotions.

An ESP can be used to make potential customers feel valued, special, trendy, and beautiful or like they belong and therefore convince them into making purchases.

Entrepreneurs need to learn how to use both ESPs and USPs because they are both important. It is no longer enough to just be different from other companies. You need to also add an emotional touch to what you need.

People tend to buy from businesses and companies that they can connect with.

No matter how logical your explanations may be, most customers are not going to buy from you if they do not feel a connection. It is the connection that helps them develop trust and loyalty to your company.

Why Should You Develop an ESP?

It is not possible to deliver effective communications to customers without a good emotion selling proposition. Only a good ESP can help adjust the attitudes and demands of customers.

Since most people’s emotions determine their actions and buying behavior, ESPs can target them. It should address authority figures, psychological triggers, risk aversion, rewards for using certain products and security. People tend to spend more money when they are happy.

If your business offers services that can make people happy, then you can make more sales. Such services include; convenience, a sense of accomplishment, friendliness, variety and discounts.

Common USP Mistakes to Avoid: A Deeper Dive

1. Generic Statements:

  • Instead of: “We offer the best quality products and services.”
  • Why it’s bad: This statement is vague and applies to almost any business. It doesn’t tell your audience what makes you unique or why they should choose you.
  • Better alternative: “We handcraft unique, locally-sourced jewelry using traditional techniques, offering timeless pieces that celebrate individuality.” This is specific, highlights a differentiating factor, and appeals to a specific audience.

2. Focusing on Features, Not Benefits:

  • Instead of: “Our software has 20 different features.”
  • Why it’s bad: Features are technical descriptions, not benefits. They tell what something does, not why it matters.
  • Better alternative: “Our software simplifies your workday by automating repetitive tasks, saving you time and reducing stress, so you can focus on what matters most.” This emphasizes the benefit of the features (saved time and reduced stress) and connects it to the audience’s desire for efficiency and well-being.

3. Making Unsubstantiated Claims:

  • Instead of: “We’re the #1 rated company in our industry.”
  • Why it’s bad: This claim needs verification. Without proof, it lacks credibility and could backfire.
  • Better alternative: “Independent reviewers consistently rank us among the top 5 companies for customer satisfaction, highlighting our commitment to exceptional service.” This uses data and mentions “customer satisfaction,” a benefit relevant to the audience.

4. Not Targeting a Specific Audience:

  • Instead of: “We offer solutions for everyone.”
  • Why it’s bad: A mass-market approach ignores specific needs and preferences, making your message less impactful.
  • Better alternative: “We empower busy entrepreneurs with time-saving marketing tools designed to help them launch and grow their businesses quickly and efficiently.” This clearly defines the target audience (busy entrepreneurs) and mentions relevant benefits (saving time and growing businesses).

Additional Mistakes:

  • Using jargon or overly technical language: Keep your USP clear and understandable to your target audience.
  • Focusing on internal metrics: Highlight benefits customers care about, not internal achievements.
  • Making negative comparisons to competitors: Focus on your own strengths and avoid negativity.
  • Changing your USP frequently: Consistency is key to building brand recognition.

Remember, your USP is a concise statement that defines your unique value proposition. Avoid these common mistakes to craft a memorable and effective USP that resonates with your target audience and sets you apart from the competition.

Testing and Refining Your USP: A Continuous Journey

Crafting a strong USP is crucial, but it’s an ongoing process. Just like your business evolves, your USP needs to adapt to ensure it remains relevant and effective. Here’s how to refine and test your USP for optimal results:

Gathering Feedback:

  • Customer Surveys and Interviews: Directly ask your target audience about their perception of your USP. Conduct surveys or interviews to understand how well it resonates, what resonates most, and areas for improvement.
  • A/B Testing: Create variations of your USP with slightly different wording or emphasis and test them with real users through website landing pages, ads, or social media campaigns. Track which version performs better to identify the most impactful wording.
  • Focus Groups: Gather a small group of target customers and discuss your USP. Observe their reactions, questions, and suggestions to gain valuable insights into its clarity and appeal.
  • Expert Reviews: Seek feedback from marketing professionals or branding specialists who can provide an objective assessment of your USP and suggest improvements based on best practices.

Tracking and Measuring Results:

  • Website Traffic and Conversions: Monitor how your USP impacts website traffic and conversion rates. Does it attract the right audience and convert them into leads or customers? Use analytics tools to track changes and measure effectiveness.
  • Brand Perception Surveys: Conduct surveys or track online sentiment analysis to gauge how your target audience perceives your brand and USP. Is it clear, memorable, and differentiated? Monitor changes over time to see if your USP is influencing brand perception as intended.
  • Social Media Engagement: Analyze engagement (likes, shares, comments) on social media posts that mention your USP. Does it spark conversation and attract interest? Look for patterns and adjust your messaging based on audience response.
  • Competitor Analysis: Keep an eye on your competitors’ USPs and how they perform. Are they addressing similar needs? Can you refine your USP to stand out more effectively?

Adaptation and Evolution:

  • Be Iterative: Don’t expect your USP to be perfect from the start. Test, gather feedback, and refine it based on what you learn. Embrace continuous improvement and adaptation.
  • Market Changes: As your industry or target audience evolves, adjust your USP to reflect changes and maintain relevance. Be mindful of emerging trends and customer needs.
  • Audience Feedback: Always consider customer feedback seriously. If your audience doesn’t understand or connect with your USP, it’s time to refine your message.
  • Stay Authentic: While adapting, stay true to your core values and brand identity. Your USP should resonate with your essence while addressing customer needs.

Is a USP Your Key To More Sales?

Both ESPs and USPs are crucial for the establishment of a brand. If you can combine emotional and logical appeal, then you can definitely convince more and more people to buy.

Since it is impossible to have a business that is completely unique, entrepreneurs have no choice but to do whatever they can to make their products and services competitive.

The most effective way to do that is to explain to people why they should buy your products while making them feel confident, happy and secure.

If you want to find out more about positioning your product on the market, Contact ProfileTree today.

Unique Selling Point FAQ:

1. How often should I review and update my USP?

There’s no set timeframe, but it’s recommended to review your USP at least annually. Be more proactive if your industry, target audience, or brand identity undergoes significant changes.

2. What happens if my USP doesn’t seem to be working?

Gather feedback, track results, and analyze where it might be falling short. Consider refining the wording, testing different variations, or seeking professional help to ensure it effectively conveys your unique value proposition.

3. Can I have multiple USPs for different target audiences?

Yes, but be mindful not to dilute your message. If targeting distinct segments, consider developing tailored USPs that resonate with each group while maintaining brand consistency.

4. Is it okay to borrow inspiration from competitors’ USPs?

Learning from competitors is valuable, but avoid direct copying. Analyze their strengths and weaknesses to develop your own unique and differentiated position in the market.

5. What tools or resources can help me develop and test my USP?

Many online tools offer USP development templates and surveys. Utilize website analytics platforms to track traffic and conversions. Social media insights can reveal audience engagement with your messaging.

Unique Selling Point Conclusion:

Crafting a strong and effective Unique Selling Point is crucial for setting your business apart and attracting your ideal customers. By understanding the key principles, avoiding common pitfalls, and actively testing and refining your USP, you can ensure it remains relevant, resonates with your audience, and drives your business success.

Remember, your USP is an ongoing journey, not a one-time destination. Embrace continuous improvement and adaptation to maximize its impact in the ever-evolving marketplace.

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