You can’t escape the term “USP” in most marketing writing. In case you haven’t done much reading in that field, we’d like to tell you that USP stands for Unique Selling Point (or Proposition). It is what differentiates your product or service from those of your rivals, the only thing that distinguishes you from the competition.

Now, you would be right to ask how every product or service could have a USP, especially when there are so many well-matched offerings on the market.

Let us clarify. A USP is something that stands out to you in the mind of your customer. There may or may not be any difference in reality, but it is the perception that counts. Take Citibank’s legendary tagline “The Citi Never Sleeps,” for example, which created an image of a safe and responsible bank in the public mind. Other banks could make a similar claim, but Citibank clearly took possession of that property.

Having a unique selling proposition is not only good, it is a must. Without it, your business is at risk of

o Get lost in the crowd, like me too
o Not being able to attract the target clientele, who might be using another product and have no incentive to switch
o Being caught in a price war, as that would be the only differentiator, all other things being equal

That being said, your product or service must clearly offer value to the user, or it will fail, USP or non-USP!

Establishing a unique selling point, especially for a current or non-innovative product, is not easy. Rarely will a USP be obvious at first glance. Why would clients pay several million dollars to ad agencies to create one, if they did? If you’re looking to establish your own, try the following evaluation process:

o Compare your product with those of your competitors in terms of the features and benefits each offers. Does your product offer a unique benefit?

o Assuming that most competing products meet the same physical needs, assess how different they are when it comes to meeting emotional needs. The strength of the brand plays a very important role in this case.

o Features and benefits do not have to be the only differentiator. Analyze if your distribution network is wider, or if you deliver in less time. Service is as big a USP as any.

o For high-tech and expensive products, the availability of spare parts and a service network play almost as important a role in the purchase decision as the product itself. So if you have it, show it off!

o Only when you have gone through this list should you even consider looking at the price. The price as a USP is good only as long as a cheaper variant does not appear.

You might find it interesting to know that not all IPs are established by clear speaking. Many are represented visually or implicitly. What is important is that the (unique selling) argument must be made in no uncertain terms!