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USP: Definition, Benefits, Examples & Tips to Create It

Last updated: Nov 06, 2023

USP: Definition, Benefits, Examples & Tips to Create It
Cover image: Illustration of USP as an unique element that differs one brand/product from competitors.

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In the competitive business world, USP is a secret weapon that plays a crucial role in the competition to gain the trust of potential customers or clients.

USP stands for Unique Selling Proposition which encompasses the unique points of a brand/company that set it apart from competitors in a similar market niche.

However, more than just an acronym, it is a key that can unlock the success of digital marketing effectively. 

Let's delve deeper into what is USP in marketing, its functions, examples, and its overall concept from the following explanation. 


What is USP? 

Illustration of USP (Unique Selling Proportion)
Figure 1:  Illustration of USP (Unique Selling Proportion)

As a savvy businessperson, you must know that USP is the foundation of every effective marketing strategy.

Just as the meaning of its acronym, Unique Selling Proposition, it is a series of points that give leverage to a brand to stand tall amidst the crowd and articulate its unique story.

This concept was first introduced by Rosser Reeves in the 1940s and has been the foundation of various marketing campaigns since then.

As the name suggest, this component consists of series of advantages conveyed by a company using an approach relevant to customers or potential clients.

With this component, business owners or marketing teams can create a promising impression in the minds of customers by presenting several advantages not possessed by any other brand.

Essentially, Unique Selling Proportion can be derived from various elements, such as product quality, competitive pricing, service excellence, or other special features not possessed by competitors.

However, it is important to note that, besides aiming to sell products or services, the existence of this marketing component is also crucial for creating a strong emotional bond and trust with consumers.

So, how do you create a captivating and memorable USP? Read this article to the end to find the answers!


Why is USP Important for Business?

After understanding what is USP, you might be curious about its impact in the digital business world.

Simply put, with the right Unique Selling Proportion, a brand can deliver an unforgettable message, spark curiosity, and engage customers in buying activities to increase conversion rates.

Unique Selling Proportion is an offering method that helps customers distinguish your product/service from others. 

Demonstrating excellence through unique selling proportion can also help build a brand image, a crucial factor in purchasing decisions.

Moreover, it can also help underline your marketing goals more specifically to gain consumer loyalty. To fully understand its range of benefits, let's explore the following discussion!


Benefits of Unique Selling Proposition

Illustration of Various Offers and Benefits of USP
Figure 2: Illustration of Various Offers and Benefits of USP

It is an element that should not be overlooked in your marketing strategy. Here are some benefits of USP marketing that can enhance the scalability of your business:

1. Differentiate You from Other Competitors

In a highly competitive business environment, it is a strategy that helps companies identify and highlight unique characteristics to make a product/service appear different and more appealing to customers.

Customers are generally drawn to products or services that promise added value or benefits not found in their competitors.

2. Strengthens Brand Identity

This strategy can help you build and strengthen your brand identity in the digital landscape. 

When a company successfully emphasizes specific characteristics through Unique Selling Proportion, it means the company has successfully created a strong and consistent impression in the minds of customers.

Within the efforts, you can highlight special features such as quality excellence, pricing, or other added values.

By emphasizing these factors, your brand identity can become more significant and easily distinguishable from other competitors.

3. Improves Purchase Decisions

If you understand what is USP, you must know that it explicitly conveys added value that is different from competitors. 

The effective strategy is not only appeals to rationality but also stimulates emotions. With a captivating and relevant selling proportion, you can convince consumers that your service is ready to guarantee a user experience far superior to competitors.

4. Facilitates Promotional Efforts

By knowing how to create suitable selling proportions, a brand can choose these aspects as the main focus in promotional campaigns. 

Furthermore, a brand can convey a clear and consistent message to encourage interaction through special benefits such as discounts or loyalty programs.

5. Increases Revenue

This marketing effort can also increase your business revenue. Especially if you can present it with a special appeal to customers seeking specific characteristics or benefits. 

This increases the likelihood that customers will choose your product or service based on the excellence.

6. Competing in Market Changes

Unique Selling Proposition is a strategy that can help companies remain resilient amid market changes. 

By understanding what makes them unique, companies can quickly adjust their strategies to respond to changing trends and customer needs without the need for extensive research.


Tips on Determining a Suitable Niche-specific USP

Determining a Unique Selling Proposition is a critical step in designing a marketing strategy in the digital era. 

To avoid missteps, here are some tips to help you determine Unique Selling Proportions that aligns with your niche.

1. Understand the Niche Thoroughly

First thing first, you need to have a solid understanding of the characteristics and specific needs within your business niche. 

Start by studying the criteria and strengths of competitors, identify market gaps, and understand the desires and needs of customers in that niche.

2. Position Yourself as a Customer

Did you know that many businesses still do not prioritize customers in every operational strategy?

Many business owners pay too much focus on improving quality but forget what customers actually need. 

To present a captivating selling proportion, you must first position yourself as a customer and evaluate your business from the consumer's perspective. 

Steps could include conducting surveys to review what customers are actually looking for.

3. Identify Market Problems or Needs:

After putting yourself in the shoes of a customer, you need to find market problems or needs that can be addressed by the presence of your product/service. 

In order to maintain the uniqueness of your business, it's advisable to focus on needs in the niche that have not been met by competitors.

4. Observe Customer Feedback

The next step is to listen to your customers. Every feedback, review, and interaction on social media can provide insights into what customers consider important in that niche. 

Once you gather this information, correct any mistakes and present some unique points that is responsive to their needs.

5. Observe Competitors in the Niche

In addition to focusing on customers, this strategy also requires you to pay attention to several competitors in a similar niche. 

Explore what they offer and determine their weaknesses. Once you find gaps or deficiencies in their service or product value, you can use them to show your business’ unique points. 

6. Use Relevant Language and Messaging

All the processes above will be in vain if you cannot present your it using language that is easily understood by consumers. 

When designing it, you should use language and messaging that resonates with the audience in that niche. 

Use language relevant to the target market's age, and pay attention to keywords, terminology, or offers that they consider important.

7. Align The Proportion with Trends

One key to business success in the digital world is the ability to compete and adapt to evolving trends. 

In line with this, as a business owner, you must design a USP that can remain relevant even amid changes or shifts in customer preferences.

8. Conduct Evaluation Regularly

An essential step in designing a USP is to conduct small-scale testing or surveys targeting your niche market. 

This strategy is necessary to measure responses to various elements to ensure that the results align with the needs of your target market.


Some Examples from World-Famous Brand

Let's discuss some of the examples of Unique Selling Proportion from world-renowned brands as references for your business.

1. Coca-Cola

Since its establishment, Coca-Cola has embedded a unique selling proportion, "Unmatched Original Taste." \

In addition to being represented through the quality of its products, Coca-Cola actively communicates it through various advertisements and campaign as they also conveyed it through the depiction of the red color and a memorable tagline.

2. Starbucks

Everyone is familiar with Starbucks. As one of the world-renowned brands in the coffee business, most Starbucks products are offered at prices above average. 

But why do many consumers still love it? In this case, it is a crucial determining factor. Starbucks lists its USP as "premium coffee" that strives to make everyone feel special when drinking it. 

Starbucks successfully presents a different coffee taste, complete with supporting elements such as a store atmosphere that further strengthens the premium impression.

That concludes the complete explanation of what is USP and its role in perfecting marketing strategies in the digital era.

Unique Selling Proportion is the main highlight that can make your product/service offering more unique and create an exclusive space in the minds of customers.

To support digital marketing strategies, it's even better if you can create some that aligns with SEO principles. 

SEO strategies through expert intermediaries can help improve your brand's visibility on search engines. 

This way, potential customers can easily find your brand and explore various attractive selling proportions.

If you want to maximize digital marketing strategies through search engines, then SEO Services by cmlabs are ready to be a trusted partner in efforts to increase organic traffic and ranking on SERPsContact our Marketing Team and let's collaborate!

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