Maximizing the Value of a Unique Selling Proposition

While the term Unique Selling Proposition (USP) might be in widespread use, it is an underutilized – or unutilized – concept in most companies. Ignoring the value of a well-crafted and well-thought-out USP leaves companies without a foundation on which to base their marketing and sales activities, while employing a strong USP provides companies with a strong competitive advantage.

A USPs unites a company’s people and external parties around a clear message about its value. It provides a company’s customers (and vendors) clarity about what the company does, what distinguish it from the market competitors, and why they should engage the company or buy its products. All marketing and sales communications messages are based off of the USP.

Simply the act of going through the process of creating a USP provides employees, suppliers and customers alike the knowledge that the company understands the value of clear communication, and the ways in which that clear communication mitigates risk.

A USP is more than a sales message. It is a clearly articulated set of criteria that describe the company’s philosophy, product/service offerings and market differentiators.

The Value of a USP

Customers are always asking why they should do business with your company. However, often those questions are kept to themselves. A USP answers the question of what’s in it for the customer by articulating the company’s standards of excellence, and its products’ exemplary qualities.

A good USP will contain four elements:

1. The Promise

A list of the commitments you make to your clients. This list sets out the promises you undertake, answering many of the common questions that clients will have, and allaying any basic fears or concerns they may have. Examples could include delivery guarantees, return policies, product certifications and special design/manufacturing features.

2. The Path

In the broadest sense, this is the company’s story and describes the values behind how it does business. While this story might seem obvious from the perspective of a company insider, it is not always obvious to customers, and educating them on how you do business, and why you do business in specific ways is a powerful way of conveying your company’s values.

Examples can include providing a brief company history and the history behind its products. Alternatively, you can talk about the people and/or technologies behind the business. This section can also address what the customer can expect in terms of interaction with the company; specifically what it can expect after an order is placed.

3. Reversing The Risk

Risk reversal is a response to growing attention companies are paying to reducing the exposure created by their decisions, purchasing and otherwise. Risk reversal is simply a way of demonstrating to the buyer how the company will absorb or share some of the risk inherent in any sell or transaction.

Significantly, risk reversal addresses the perceived risk on the part of the customer, not on the part of the company. It is not unusual that customers assign risks to purchases that the company believes are minor concerns.

There are numerous ways to create a risk reversal. Guarantees are a simple, and widely used example, and can come in the form of price, performance, satisfaction guarantees. Your company can gain a competitive advantage by simply beating the risk reversal offerings of competitors. Creating the right guarantee to meet customer concerns and stand out among competitors often requires research to surface the actual risk concern. Researched and addressed correctly, these guarantees can support a premium pricing strategy, as customers will perceive a higher value in doing business with your company.

It goes nearly without saying that these guarantees must be credible and fiscally sound.

4. Stating Your Position

Sometimes referred to as an elevator pitch, a positioning statement is a short, simple description of your business and why people should care about it. Focus the positioning statement on the key reasons why customers should do business with you, as opposed to your competitors. Describe your offering, but also try to work in a subtle call to action, if possible.

This position statement is the foundation of all communications with customers. It will inform everything from advertising and website copy to messages used by sales personnel with buyers and potential buyers.

Creating Your USP

Creating a sound and lasting USP is typically an intentional and iterative process. It is sometimes helpful to start with the kitchen sink approach, including everything about the company, its history, its markets and its products. Examine the people involved in building and growing the company, their special skills and accomplishments.

With this information in hand, the story which forms the Promise can be brainstormed, and a concise message about what the company offers its customers can be crafted.

In developing the Path, consider creating a process flow that describes all points of customer interaction with the company, from the time s/he receives a sales call or direct mail piece, to the time it takes for delivery, to when s/he interacts with support services.

Take the time to research and understand what your client does and does not know about your business. Solicit their opinions and feedback about the company, its products, processes and policies. This process will not only help in the creation of the USP, it can yield valuable process improvement information for the business. Once you have developed your initial USP, run it by key clients for their input and feedback.

It is also worthwhile to get opinions from objective third parties, such as marketing consultants and/or experts in your industry. Seek candid feedback both about your business and about the business of your competitors. If your competitors have USPs, you should know them.

Market test various risk-reversal guarantee approaches to determine the ones with the best customer acceptance.