The USP of a product is not necessary in just one case. What? If you are extremely lucky, that is, the only player in your industry. Let's say sole exporter of paddles to the Sahara desert. In any other case, you will have to set yourself apart from the competition with a unique selling proposition. Do you have one?
Product USP (unique selling proposition) is a must today. Competition in business is as obvious as the cold in the refrigerator. This is the natural order of things. Especially in the case of e-commerce brands, where companies have to worry not only about local competition. Every sales support is worth its weight in gold. Customers are overwhelmed with too many options to choose from. They want to quickly understand what makes one product or brand different from others. Knowing how to properly position yourself and your products can mean choosing between standing out or blending in with the background. Therefore, it is important that all entrepreneurs understand how identify a unique selling proposition. Such a product USP that will help potential customers make purchasing decisions.
What is Product USP?
A unique selling proposition, more commonly referred to as a product USP, is the only thing that makes your business better than the competition. This is a special advantage that distinguishes it from other companies of a similar profile operating on the same market. Formulating a strong and thoughtful product USP helps to focus on your marketing strategy and influences communication, branding, copywriting and other marketing decisions. Basically, a USP should be able to quickly answer the most direct question of a potential customer when they encounter your brand. So what distinguishes you from the competition.
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The USP of the product uses strengths of the company. It should be based on what makes the brand or product extremely valuable to customers. Being "unique", "timeless" or "one-of-a-kind" is seldom a strong characteristic in itself. The company needs to identify some specific aspects that its target audience cares about. Otherwise, her message will not be effective.
Product USP - Definition
USP (Unique Selling Proposition) is a business tactic thanks to which a product, service, company or brand are able to truly distinguish themselves from the competition. In a nutshell, the idea is to emphasize a specific product feature in all marketing messages, which defines the unique and most desirable value in the eyes of the customer. The slogan "Product USP" was already used in the 1940s. The definition of "unique selling proposition" was first defined by TV advertising pioneer Rosser Reeves, representing Ted Bates & Company.
The USP of the product indicates a specific feature, the strength of the offer, which distinguishes our product on the market. Ideally, the indication of the USP of a product will be supported by specific studies, rankings or customer reviews.
Theory is the theory, but what is the USP of the product in practice? If your company does represent a unique selling proposition, then it is what what distinguishes your company from others. How does it look on the market? Look for big brands like Coca-Cola. Instead of trying to be known for everything, it represents something concrete. Unique and appropriate only to her. And it is thanks to this that some companies become known. This is why.
The Unique Selling Proposition (Unique Product Feature) is the essence of our offer, a distinctive feature that makes it more attractive than the competition. Its definition allows us to effectively distinguish our products on the market. However, in order for the USP to bring the intended effects in the form of an increase in sales and the number of new customers, it must be properly formulated and communicated.
At a time when we are just a few clicks away from accessing a specific offer, companies need an effective idea to distinguish themselves from the competition. A good price and empty advertising slogans are no longer enough. Every year, hundreds of thousands of new business entities appear on the Internet, trying to break through the maze of marketing messages. Poland is one of the most dynamically developing e-commerce markets. In recent years, trade has definitely moved online, ensuring easier and easier access to offers from around the world. Consumers spend more and more time online comparing offers and boldly sharing their opinions with other users. The price, while still important, gives way to quality and unique purchase benefits.
Many companies make the mistake of trying to insist that they are generally the best right from the start. In everything. They want to do everything right. And they want to do it for everyone. They want to be known for the highest quality products AND the lowest prices. Take, for example, a restaurant that works this way. I want the best food AND the lowest prices. She wants to be known for the tastiest pizza AND the best salads AND the juiciest steaks and ribs. There is, however, a fundamental problem. When you try to be known for everything, there is a high risk of not becoming known at all.
Product USP - Quotes
Theodore Levitt, a professor at Harvard Business School, pointed out that "diversity is one of the most important strategic and tactical activities that companies must constantly engage in." A strong USP of the product will allow you to properly position your offer on the market and clearly distinguish you from the competition. Hulling one feature that is important to customers will allow your company to gain the necessary advantage that you cannot miss. The formulation of the product USP is the basis for constructing an effective marketing strategy and communication of your brand with the market. This unique feature, like a compass, will clearly indicate the direction of activities and narratives.
Madam CJ Walker, the first woman to achieve millionaire status on her own, advised: “Don't sit around waiting for the opportunity to come to you. Get up and create it. "
The USP of the product should quickly and specifically answer the question - what distinguishes your product from the competition's offer. In order to be able to correctly indicate a unique selling proposition, you need to translate the features of the product we offer into the language of benefits.
The USP of a product may be a unique feature of our offer, an original production process, an unusual approach to the customer, the possibility of personalization or outstanding after-sales care.
Sometimes when looking for a USP of a product, it is worth paying attention to negative opinions, which Bill Gates found out very early - "Your most dissatisfied customers are the greatest source of information." Thanks to this, you have the chance to see your product from a completely new point of view and receive information that will allow you to improve it even more.
Lakshmi Mittal, CEO of ArcelorMittal advises, "If you want to grow, you have to do something different than most people." However, just being "unique" is too general a cliche to make you want to take advantage of a particular offer. The uniqueness must be supported by a specific feature that the customer will readily perceive while using the product or service. Examples of well-defined product USPs include:
- The highest rated solution on the market
- Number one on the market
- We are No. 2, but we try harder
- It melts in the mouth, not in the hand
- Real time savings
As John D. Rochefeller advises, "Don't be afraid to give up what is good to go after something great." The USP of a product is especially important for products offered and sold on the Internet, where it is really not easy to clearly mark your presence and place in a row, and it is relatively easy to compare offers from many competitors. Unique selling proposition helps not only to gain new customers, but also to retain regular customers, making sure they are right in the decisions made earlier.
What can be an effective USP for a product?
Useful cliches for nothing. The USP of a product must be distinctive, original, and compelling. In order to effectively define the USP of a product, you need to know your offer well, as well as the possibilities of your competition. You should also thoroughly understand the needs of our potential customers to indicate the feature they expect the most.
When proceeding to determine the USP of a product, list all the features and strengths of your offer, then leave only those that are not provided by the competition. Test third-party products to find out about their weaknesses that can be exploited.
Then look at your product through the eyes of the customer. Bet on those features that are most relevant to a specific customer segment. Invest in professionally conducted research of potential customers, because companies are often blind to the simplest and most revealing insights.
A convincing product UPS should be:
- convincing and containing specific arguments that constitute a counter to the competition's offer,
- original and memorable,
- bold and accurately meeting the needs of potential customers.
A unique selling proposition, which is what?
A convincing USP of a product should meet several conditions. First, be assertive but defensible. This means adopting a specific position. Arguments against competing products are more memorable than general statements like "we sell quality products." Second, the USP of the product should be focused on what you value target group. Being "unique" won't matter to your target customers, unless it's something they really care about. A unique selling proposition is more than a slogan. It's also something you can bring to life in other areas of your business, from returns policy to your supply chain.
You should be able to put your words into action. Not necessarily what you sell has to be unique. This does not mean, however, that the message you want to focus on should be what your competition has. A strong, instantly recognizable USP of a product can take both companies operating in competitive markets and in niche industries to new heights. Those that they sell to retail customers as well as those that they sell to other companies using B2B marketing.
So it's important to leverage your USP and make it the cornerstone of your overall marketing strategy. Until the company learns what its USP is and how to use it, it will be just another voice lost in the flood of messages demanding to be heard.
What is absolutely not the USP of the product?
The USP of a product is certainly not its price, nor is it a temporarily implemented marketing offer. A Unique Selling Proposition is also not a feature that others provide or can easily provide, such as free shipping or return options. The USP of a product must be unique enough that the competition cannot quickly react and copy it.
The USP of the product is a response to the most emotional needs of your potential customers and to their most deeply hidden preferences. The Unique Selling Proposition must be defined in the form of short, simple and understandable slogans. Appropriate communication of the USP of the product is no less important than the promoted feature of the offer itself.
To successfully determine the USP of a product, you need to honestly answer the following questions:
- Why should customers really buy your product or service?
- What is your real competitive advantage?
- What actually makes my offer unique?
- What added value do you guarantee to your customers?
- Why would potential customers change their purchasing preferences and move away from the competition?
Product USP as a remedy for customer problems
Before you begin to think about the ideal USP for a product, there are two things you need to know exactly. Who do you want to sell to and why. Who are the ideal customers of the company? Why do they need your products? Only when you know it, you can start working on the unique, best USP of the product. And it's unique in that… (complete as you see fit). Explain how your business solves the problems of your ideal customers. This is the truth as old as the world - consumers do not want to buy products. They want to solve their problems. Sometimes it can be as simple as purchasing a reliable set of tools that will last for years. Usually, however, it is much more complex.
Take the garment industry, for example. Companies in this industry not only sell clothes. Let us be warm. Or that we can go to the pool in proper clothes. They also sell a certain lifestyle. Glow, confidence and chic. Think about it in the context of troubleshooting. People who want to look a certain way - elegant, nonchalant or anything else but "stylish" will buy certain clothes. Most advertisements for clothes and cosmetics are based on this. Nevertheless, this concept applies to many other industries as well.
So what should you absolutely remember? To create a strong USP of a product, you need to research profile of your ideal client. Then show him your products in a way that will convince him that you can meet his needs and solve his problems. You cannot act with the hope that you will be able to generate a convincing product USP intuitively. You won't find a customer if you don't know who he is. Give people a certain value. If your potential customers choose your products, how will their lives improve? What makes your business so special that potential customers should choose your products or services? The answers to these questions should form the basis of your product USP.