What is a Unique Selling Proposition (USP)?
In marketing, the unique selling proposition (USP), also called the unique selling point in the business model canvas, is the strategy of informing customers how your brand or product is superior to its competitors.
When I ask business owners what makes them unique and why I should do business with them, they often respond with statements like, “I have years of experience, I like to help people, I am reliable, I care about people, I want my clients to be happy, I’ll do whatever it takes to make sure my clients are satisfied, I provide professional services and offer great customer service.” These are ineffective statements for selling your business. Customers expect good service and professionalism. You aren’t offering anything beyond what is expected.
Business owners often give similar responses when asked why someone should choose them over their competitors. It sounds like they’re reading from their resume; as if they were applying for a job. When you run a business, you’re no longer an employee, so focusing on selling yourself isn’t the right approach.
The goal is to demonstrate how purchasing from or working with your business—whether as a customer or through a partnership—will benefit the goals, vision, and mission of all parties involved. The focus should be on the customer and the products or services you offer, supported by great feedback or reviews that prove your offerings work.
How do you persuade a person to do business with you?
There are three main ways to persuade people to do business with you, and focusing on your credentials and work experience isn’t one of them.
1. Money (Make More or Save More):
Most people are interested in making more money, but some customers prefer saving or spending less. If you can help customers make more money or save it, they’ll be willing to pay more for your product or service. This means you won’t have to compete on price anymore. However, you must back up your claims with evidence.
2. Status (Appearance of Success)
This is commonly seen in the luxury industry. Customers are willing to pay high prices for products that signify wealth or high social status. For example, buyers may pay thousands for a luxury handbag, or hotel guests may pay $800 to $1500 per night for an upscale experience. The logo and brand act as status symbols. If you can help customers increase their status, stability, and security—whether in the marketplace, on social media, in their industry, or within their social circles—you will secure their loyalty, and you won’t have to compete on price.
3. Ease of Pain (Reduce Mental, Physical, or Emotional Distress)
Reducing the pain points of your customers is a core reason your business exists. If you can demonstrate how your product or service alleviates pain in multiple areas of their lives—physical, mental, or emotional distress—customers will pay for the solution. Pharmaceutical companies do this effectively by marketing products that relieve pain. If you can address and eliminate the pain points of your target audience, you will have them choose your business, as long as you are a good fit, and you’ll never have to compete on price.
Business Tip:
Don’t try to implement all three strategies at once. It’s best to start with one or two. Focus on your chosen strategy for 6 to 12 months for the best results. You cannot change strategies weekly, monthly, or quarterly. Consistency is key, and your marketing materials should align with your new direction.
Developing a Unique Selling Proposition that truly sets your business apart requires a clear understanding of what your customers value most. Whether saving money, enhancing their status, or alleviating pain points, your USP should focus on their needs and desires, not just your qualifications. By selecting a strategy and committing to it consistently, you’ll build a strong, differentiated brand that resonates with your target audience and drives business growth. Remember, the key to standing out from your competitors is not in competing on price, but in delivering real, tangible value that makes customers choose you every time.
Are you finding the tips helpful? Click the link to support the blog and keep helpful content coming your way.
What's Trending Sage 