Whether you’re putting together a business plan for a start-up, writing a small business proposal or drafting a pitch for small business funding, one of the vital factors that should be crystal-clear is your unique selling proposition (USP).
What is a USP and why does it matter?
Fundamentally, a USP should outline the key differentiator, benefit or characteristic that sets your product or brand apart from competitors. It should provide a compelling reason for customers to choose it over other alternatives. You could think of it as your ‘X-factor.’
Entrepreneurs typically build their USP around factors like competitive pricing, superior quality, an unmatched level of convenience, greater accessibility, the efficiency of addressing a specific pain point or cutting-edge innovation.
Some good USP examples to consider
Let’s consider some of the most well-defined USPs from world-renowned brands. Logistics company FedEx's USP is captured in the tagline, When it absolutely, positively has to be there overnight. This message speaks to speed and reliability, setting FedEx up as the delivery service provider of choice when time is of the essence.
Mega coffee brand Starbuck’s USP is best expressed as Expect more than coffee. Here the value being proposed to potential Starbucks customers is that not only will they get good coffee, but they’ll also get good conversation, a break during a busy day, friendly service and a community of coffee lovers. Immediately, the target audience is drawn into the lifestyle element of Starbucks rather than just what’s on its menu.
Another example, a bit closer to home is Checkers Sixty60, whose USP offers a speedy, 60-minute grocery delivery service – a proposition that had been previously unexplored by its competitors at the time of its launch. This new level of convenience and unmatched speed was a first for South African retailers – it was a disruptive USP, and it has produced amazing results, building fantastic brand equity in the process.
Some resources that can help you develop your Unique Selling Proposition (USP) include:
Market Research Tools: You can use tools such as SurveyMonkey, Google Surveys, or Qualtrics to gather insights about your target audience, their needs, preferences, and pain points. Understanding your customers' perspectives is crucial in identifying what makes your offering unique and valuable to them.
Competitor Analysis Tools: Conduct competitor analysis using tools like SEMrush, SpyFu, or SimilarWeb to gain insights into your competitors' positioning, messaging, and unique selling points. This analysis can help you identify gaps and opportunities to differentiate yourself.
Customer Surveys and Interviews: Engage directly with your existing customers through surveys or interviews to understand their perception of your product or service. Ask questions that probe into what they find most valuable and what sets you apart from your competitors. Their feedback can provide valuable insights for developing your USP.
SWOT Analysis: Perform a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis to evaluate your business and identify unique strengths that can be leveraged to differentiate yourself from competitors. This analysis can help you understand your internal capabilities and external market factors that influence your USP.
Top tips on how to formulate a winning USP:
Make it specific and memorable: Craft a concise and compelling statement that communicates your USP in a clear and memorable way. It should highlight the unique benefit or advantage you offer and differentiate you from your competitors. Use language that resonates with your target market and makes your USP stand out.
Test and refine: Once you have developed your USP, test it on your target audience or a focus group. Gather feedback, conduct surveys or interviews, and assess the effectiveness of your USP in differentiating your offering and capturing attention. Refine and iterate based on the insights gained.
Always be ready to move as things evolve: Remember, a successful USP is not just a catchy slogan or tagline but a reflection of the real value and differentiation you provide to customers. It should be supported by the actual experience customers have with your product or service. Continuously monitor the market, customer feedback, and competition to adapt and refine your USP as needed.
Ben Bierman is the managing director of Business Partners.
BUSINESS REPORT