Have you ever wondered what does USP stand for? Learn everything in this post.
Knowing the USP meaning is a big deal if you want to make it in business. Understanding the unique selling proposition is important in creating A/B experiments, which I’m an expert in. It goes without saying that selling points in a business is my expertise.
What does USP stand for in marketing? Let’s find out.
What Does USP Stand For?
USP stands for Unique Selling Proposition. In the simplest of terms, the USP is the one thing that makes your business stand out from your competitor.
Your USP is basically what answers the question, “What makes your business stand out?”
Despite what you might think, being unique isn’t everything there is to your USP. You have to consider what your business can offer to your target customer that your competition can’t. Your USP is why your customers choose you.
A strong USP considers a lot of factors but does so effectively. If you want an effective USP, your business should consider your ideal customer, your customer needs, your unique selling point, and the benefit you offer.
Your USP is more than a slogan. The unique selling proposition is an internal statement that serves as your business’s foundation. Whether you have a small business or a corporation, everyone in your company should know the USP by heart.
Why Is A Unique Selling Proposition, Important?
Having a great USP is like having an ultimate guide for your business.
It’s important to have a good USP because it leads to all good things for your business. Customer loyalty, effective marketing efforts, a strong brand, unrivaled customer service, and a success story are all things that root from a strong, unique selling proposition.
Your USP is how you will reach out to your target audience and get the attention of a potential customer. It’s how you will explain to your prospective customer why they should do business with you.
6 Examples Of A Unique Selling Proposition
It’s easier to visualize what unique benefit or unique feature you can offer your target market if you have an idea of other companies’ successful USP. These unique selling propositions have become part of the whole brand and marketing campaign, which is why they have become well-known.
Here are 6 unique selling proposition examples:
Example #1: Starbucks
USP = Premium Coffee Beverages
Starbucks is a very well-known coffee brand because they stand by having premium coffee beverages. They don’t try to lower their prices, but they make it a point that their products and services truly show “premium.”
Example #2: Hydro Flask
USP = Colder or Hotter (For Long)
They set this as their USP because they know that the materials they use for the Hydro Flask are all high-quality. It can make a drink colder or hotter for longer than the other brands.
Example #3: Saddleback
USP = 100-year warranty
They give out a 100-year warranty because the leather materials they use really last long.
Example #4: Death Wish Coffee
USP = World’s Strongest Coffee
This USP example shows how the USP and the brand name are aligned. They boast of having a coffee so strong; that it’s like a death wish.
Example #5: Zappos
USP = Free Returns and Free Shipping Fee
Everyone loves Zappos because you only really pay for the product. And if you’re not satisfied, you don’t have to spend even more just to get it replaced.
Example #6: Head & Shoulders
USP = 100% dandruff protection
Head & Shoulders boasts 100% dandruff protection, unlike other brands that only guarantee 99.9%. This USP makes them unique from others. The best part is that they’re backed by proper research.
Unique Selling Proposition vs Unique Value Proposition: 3 Differences
Many people confuse USP with UVP, which is the unique value proposition. Even a business owner can be confused about a unique selling proposition and unique value proposition.
It’s important to know the difference between the two so that you can be guided when creating your unique selling proposition.
Here are the 3 key differences between USP and UVP:
#1: The Question It Answers
UVP: The UVP answers the question, “What does your business do?” It directly tells your audience what you do and what you offer. It’s usually a short and simple statement that anyone can understand.
USP: The USP answers the question, “Why should we care about your business?” The USP dives deeper into the business. If the UVP answers what a company does, the USP says why you should care about what the business does.
#2: What It Says About Your Business
UVP: The UVP shows the business’s personality and identity. If you have a clear, unique value proposition, it will be easy for you to explain what you do to internal and external people.
USP: The USP says what makes your business stand out. It goes beyond the company’s identity only because it always factors in the buyer persona. The USP usually focuses more on the customers.
#3: Where It Comes From
UVP: The unique value proposition comes from your business. If you have a business idea and set it into place, what you do is your UVP.
USP: The unique selling proposition comes from your UVP and prospective and existing customers. A good USP shows that a business listens to its customers’ needs.
How To Identify And Write A Unique Selling Proposition For Your Business
For some, it’s easy to identify a USP. However, for others, it can be a big challenge. Identifying what sets your business apart from others isn’t always easy, but it’s not impossible. Sometimes, all it takes is a great deal of time, effort, and research.
Here are 4 ways to identify and write your final USP:
#1: Make A List
Before you can identify that one unique benefit your business has, you have to identify everything you can think of first. You might think that what you have in mind is already unique, but it’s not. So, it’s best to make a list of everything that your business offers to customers. Be very specific about the benefits that you’re giving.
#2: Do Some Research
Once you’ve made a list of your possible unique selling propositions, do research. You have to do some market research and research on your competitors. By researching your competitors, you’ll have an idea about what makes them stand out and how you can stand out from them. You also have to incorporate your customers into the picture. It’s not only about standing out but also offering what your customers need.
#3: Gather Important Data
As you do your research, gather unique selling proposition. From here, narrow down your list. Use all the propositions you have come up with.
Once you have narrowed down your list, apply it to your business. Apply it like your business’ life depends on it because it really does. Communicate it well, both internally and externally.
4 Ways To Communicate Your USPs
Although your USP starts internally, it shouldn’t stay that way. Your customers and target audience need to know what your USP is.
There are various ways to communicate your USP, and they are all effective as long as you put in the effort and creativity into it. You can incorporate this into your marketing strategy, too!
Here are 4 ways to communicate your company’s USP:
Way #1: Social Media
Almost every business now has a social media page. Since more and more people are creating social media accounts, it’s one of the best places to communicate your USP. You can expect that many people will see it, and depending on how well you target your audience, they will understand it.
Way #2: Content Marketing
There’s no better way to showcase your USP than to show your audience about it constantly. Through content marketing, you always create content that shows your audience why they should engage with your brand. Your content can be as direct or as subtle as you want.
Way #3: Advertising
To ensure that your audience will see your USP, you can opt to advertise it. There are many platforms where you can do so, from offline to online.
Way #4: Digital Marketing
Almost everyone is online, so you know that using digital marketing as a way to spread the word about your USP will be effective.
Frequently Asked Questions
The whole concept of the USP and its essential elements can be confusing and intimidating. Don’t let it get to you because we have the answers to the most frequently asked questions:
How does a unique selling proposition benefit my business?
A USP makes your business stand out from other businesses. People are more inclined to do business with you when you can stand out.
How can I find my unique selling proposition?
You can find your USP by brainstorming and considering your target customers. Think about what they need that you can provide.
Do I need a different USP for every line, product, or service my business creates?
No. You only need a USP for your whole business so that it’s simpler. However, there’s nothing wrong with having another USP for a different line, as long as you will not confuse the messaging of the USPs.
How can I define my USP if my product or service isn’t unique?
There’s no problem with that. Many products aren’t unique but have a USP. You only have to think of what you can offer that your customers need. It doesn’t have to be with the product. It can be how you treat your customers or handle products.
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Now you no longer have to ask, “What does USP stand for?” You have gone through an ultimate guide. Hopefully, this helps clear out things for me and that this becomes to first step to your business’ success.