In front of you are two from the chest of the same face and each of them offers to buy an identical product. To which of them will you give money? This is the same dilemma you put before potential customers if your company and its competitors look like identical twins: identical assortment, equal prices and unremarkable service. A unique selling proposition is a marketing strategy that can set you apart from the crowd like a ray of light in a dark kingdom.

What is USP and how to invent it?

The concept of a unique selling proposition (USP, Unique Selling Proposition) was developed by Rosser Reeves, an ardent supporter of hard sales, who believed that the only purpose of advertising was to sell. This is why the USP concept is so good for small and medium businesses:

It does not require global advertising costs that do not require a quick response. It should be recognized that branding and its expensive paraphernalia are the fate of large corporations, which can direct multimillion-dollar budgets to marketing;
USP allows you to detach from competitors, without making significant changes in the work of the company;
Its implementation is often not even required – the uniqueness of the offer already exists, but simply not formed by an advertising message.

A unique selling proposition is the basis of an advertising appeal to a potential client, telling him about the benefits that he will receive in cooperation with your company. Therefore, its development is relevant for the promotion of online stores, as well as for manufacturing enterprises, B2B industry and services.

A detailed history of the origin of the USP

The concept of the unique selling proposition (USP) was first introduced in the 1940s by advertising pioneer Rosser Reeves. He was an advertising executive at Ted Bates & Co, one of the largest advertising agencies of the time. Reeves believed that a successful ad campaign must make a unique claim that sets the product or service apart from its competitors. He also emphasized the importance of using specific and measurable language in the USP to make the claim more believable.

According to Reeves, a USP should answer the question “Why should I buy your product or service?” by highlighting a unique benefit or feature that is not offered by the competition. He believed that a USP should be a clear and specific statement that can be communicated effectively in advertising.

Reeves’ ideas were first popularized in his 1951 book “Reality in Advertising,” in which he argued that a USP was essential for a product to stand out in a crowded market. He also emphasized the importance of testing and refining the USP to ensure that it resonated with consumers.

Reeves’ ideas on USP were widely adopted by the advertising industry and continue to be influential to this day. The concept of USP has evolved over time, but the basic idea remains the same: that a product or service should have a clear and unique benefit that sets it apart from the competition. It is widely used by marketers and advertisers to help businesses stand out and connect with their target audience.

Unique selling proposition (USP) Vs Offer

A unique selling proposition (USP) and an offer are related but different concepts in marketing.

A unique selling proposition (USP) is a statement that describes how a company’s product or service is unique and different from that of its competitors. It is a key factor in a company’s marketing strategy and is used to differentiate the company’s offering from those of its competitors.

An offer, on the other hand, is a specific proposal or deal that a company makes to its potential customers. It can include discounts, free trials, bonuses, and other incentives that are intended to persuade the customer to make a purchase.

In summary, a USP is a statement that differentiates a company’s product or service from its competitors, while an offer is a specific proposal or deal that a company makes to its potential customers to persuade them to make a purchase. A good USP can be used to create an attractive offer.

USP: three quality criteria

Виды USP According to Rosser Reeves’ concept, the trade offer will only become strong when it combines three important components:

Specificity of the proposal;
Benefit for the client;
Uniqueness.

Unlike many other strategies, USP does not flirt with the client, but directly offers to buy a product, try a novelty or use the service. “Buy an elephant!” – Such a call would seem excessively brazen to the customer if it wasn’t for the benefit he would get: “Buy an ultra fast elephant carrier”. In modern formulas, the benefit is often replaced by a guarantee: “If the elephant is sluggish, we will give you your money back.

And if you can formulate a proposal without difficulty, and the benefit to the client is through a comprehensive online marketing, then to find uniqueness often have to apply all the creative mind of your team.

Stages of USP development

The short formulation of Unique Selling Proposition carries a serious analytical work of experienced marketers:

To make an effective TSA, you need to address not just the benefits, but the true needs of your customers, their “pain” and desires. IKEA’s founder, Ingvar Kamprad, explains how the analytical method helped him solve the problem of reduced demand. After making sure that customers were tired of monotonous furniture, he suggested implementing their ideas with modular systems. This is how it was born, “Do you have an idea? There is an IKEA!”.
It is important to make sure that your hypothesis is not yet used by competitors. At the same time, it is often necessary to immerse yourself in the technological process, to study in detail the storage and sales technologies to reveal an invisible feature. Thus, the famous Pepsi beverage entered the market at a time when CocaCola had already captured almost the entire market. Selling the drink in metal cans allowed Pepsi to win back almost a third of its customers from the powerful corporation.
USP is formulated as a short and concise promotional message that is remembered by customers. The brightest example of this is “Melting in the mouth, not in the hands”, created by Rosser Reeves to advertise popular sweets.

Information gathering and analytics

Therefore, to make a really strong USP, you need to consistently go through a number of stages, the first of which is to identify the advantages of the company or goods that are fundamental to the client. The most effective ways to collect information become:

Understanding of your target audience. Customer survey. To do this, gather a focus group of people who resemble your avatar of an ideal customer and ask them to prioritize the choice of goods and services, aspects important to your business.
Brainstorming. If your product is innovative and completely unfamiliar to the potential client, a collective discussion will help in the search for its merits.
Identification of all the advantages of the main competitors. This method is good for launching a new model on the market or opening a business in an already filled niche.

When a list of all benefits is compiled, you should highlight a few priority characteristics that are most important to consumers and then make sure that they are not yet used by your competitors.

After that you only need to dress your USP in the form of an advertising message, which will cause your customers, if not the desire to appeal to them, then at least interest, surprise, curiosity.

10 examples of an effective USP

Примеры успешных торговых предложений

Unique Selling Proposition is a kind of core of your marketing, around which the whole strategy is built. So if it turns out to be boring, gray and everyday, you should go all the way through its development once again, and for inspiration to watch the work of brands with global popularity. Then you will definitely find your “most” feature, on which you can play perfectly.

№1. The property which is not mentioned

One unremarkable Australian cushion company has set itself the goal of increasing turnover by 30% with the help of UTP. The basis for the positioning was the availability of a cushion stamp with an expiration date.

In the morning and evening, there was an advertisement on local television about microflora and microscopic insects that live in old feather cushions. At the same time, the manufacturer not only clearly identified the problem, but also demonstrated a practical solution.

The statement “Your cushions don’t last forever” brought Tontine a 345% increase in annual turnover.

№2. Which your clients did not even think about at all.

The HoReCa sphere is one of the most competitive niches. Customers will not be surprised either by the designer interior of the cafe, or by the impressive menu of delicious dishes. That’s why the cafe in St. Petersburg offered customers not only a tasty snack, but also to communicate with the most popular animals in social networks – cats.

Entrance to the cafe with cats paid – from 400 rubles, but the crowd of visitors do not stop at their doors.

№3. USP with a bow

One of the most popular scenarios, which are used by modern firms, both commodity and working in the service sector. Surely, you have met such offers more than once:

Buy for the amount of XX rubles and receive as a gift;
Two packages at the price of one;
Order an audit and get a 30% discount for a training seminar.

And despite the dullness and monotony, these offers work: everyone wants to get a pleasant bonus to buy or at least save money.

№4. Pain in your field

In most niches, there are certain “problem zones” that your client would not want to face. The real “bearded” legend of UTP of such a format is a cargo transportation company, which in the 90’s put forward the phrase “Our loaders are always sober!”, which brought a significant increase in order flow.

And, drunk and untidy loader – not the only thing that the client is afraid to face. Thus, such USPs as “Treat without Pain” and “Insert with Warranty” were successful in dentistry, and we can’t even talk about how the sales of Domestos, which intimidates all germs under the rim of the toilet, have advanced.

№5. Make him doubt

When Huggies entered the market, Pampers had already won a significant share. But, unlike the popular brand, “cowboy” diapers were equipped with stretch belts and elastic bands, which provided not only dryness, but also comfort for the baby.

Parents, wishing the best for their children, doubted the quality of the previously used brand and were happy to start buying Huggies, giving the company a 350% growth in the first year after market entry.

№ 6. Innovation

The easiest way to develop a UTP, if your product really has some fundamental innovations that solve people’s problems. A typical example is the excitement created by the output of cell phones on 2 SIM cards, the appearance of stretch ceilings, which eliminates the need for a long process of alignment, roughing and finishing.

№7. Let the client more

Amsterdam has become the most popular tourist city in the world, not thanks to tulips and cheese. Permissiveness, sex, drugs and rock and roll bring here thousands of tourists annually.

In the format of an unremarkable cafe or pub, even allowing smoking right at the table can attract customers. An alternative to such a bold decision is letting customers, for example, take off their shoes and sit on a cozy sofa.

№8. Show concern

In Tesco’s European network of food and household items, customers are offered electric scooters, capable of developing up to 4 km/h, to move around the store. This is an extremely comfortable solution for young mothers with children, elderly and disabled people. Therefore, the sales volume in the network with the innovation has increased by 47%.

№9. Show enthusiasm

Одна строительная компания из Санкт-Петербурга предложила своим клиентам бесплатное снятие замеров и разработку трех вариантов дизайна интерьера в квартире. При этом об обязательствах клиентов в рекламе не говорилось ни слова. Но угадайте, к кому они обратились для ремонта своего жилья?

№10. The principle of a narrow niche and “sameness”

Focusing on a narrow area allows you to most fully meet the needs of your target audience. But this principle is good only in the sphere of demanded goods and services. But it is possible to do the opposite: bring all prices in the store to the same value by offering thousands of goods of different categories.

This is the principle of the Russian “Euroshop”, the European “1 euro” and a number of other brands.

Having made an effective USP, you can successfully use it both in brand positioning and in advertising. At the same time, separation from the crowd will surely bring you good dividends.

Useful tips for creating a unique selling proposition (USP)

Understand your target audience: Understand the needs, wants and pain points of your target market. This will help you to create a USP that addresses their specific needs and speaks to them in a language they understand.
Know your competition: Understand the USPs of your competitors and what sets you apart from them. This will help you to identify unique features or benefits of your product or service that can be highlighted in your USP.
Be specific and measurable: Use specific and measurable language in your USP to make it more believable. For example, instead of saying “our product is the best”, say “our product has a 98% customer satisfaction rate.”
Keep it simple and clear: Avoid using jargon or technical terms that your target audience may not understand. Keep your USP simple and easy to understand, so it is easily remembered by your target audience.
Test and refine: Test your USP with a small group of your target audience to see if it resonates with them. Use their feedback to refine and improve your USP.
Use it consistently: Use your USP consistently across all your marketing and advertising efforts. This will help to build brand recognition and create a consistent message for your target audience.
Make it Unique: Your USP should be something that differentiates you from your competition. It should be something that sets you apart and makes you unique.
Be honest and authentic: Don’t make false claims or exaggerations in your USP. Be honest and authentic about what your product or service can do, and your target audience will trust you more.

Frequent mistakes in the preparation of a unique selling proposition (USP)

Failing to understand your target audience: Not understanding the needs, wants, and pain points of your target market can lead to a USP that doesn’t resonate with them.
Not differentiating from the competition: If your USP is too similar to that of your competitors, it will be difficult for customers to see why they should choose your product or service over theirs.
Being too general: A USP that is too general or vague will not be memorable or effective. It needs to be specific and unique.
Focusing too much on features, not benefits: A USP that focuses on the features of a product or service rather than the benefits it provides will not be as effective.
Using too much jargon: Using technical terms or jargon that your target audience may not understand can make your USP difficult to understand and less effective.
Not testing: Not testing your USP with a small group of your target audience can lead to a USP that doesn’t resonate with them.
Not being consistent: Not using your USP consistently across all your marketing and advertising efforts can lead to confusion among your target audience.
Not being honest: Using false claims or exaggerations in your USP can lead to mistrust and loss of credibility among your target audience.