How to Identify a Company's Unique Selling Proposition (USP)

Intro

The best way for a business to stand out from the competition is by identifying and marketing its unique selling proposition (USP). This signifies the elements of a business that make it superior to competitors and will help drive new customers to a product or service. In this guide, we’ve explained how to identify a USP and leverage it to make waves in a crowded market. 

What is a USP?

As its name suggests, a USP defines a company’s unique proposition to consumers or other businesses. Essentially, this communicates the special element of a business’s products and services that solve a particular problem. The important thing is that it outlines what it is the company provides that other competitors don’t, which is especially important in a crowded marketplace.

One notable crowded industry is online casino gambling, with operators needing to distinguish themselves to attract new customers. Paddy Power has successfully done this by offering popular casino games with live dealers from reputable developers, as well as a suite of branded blackjack and roulette games that are exclusive to its platform. This gives them a unique market position that fulfils their customers’ want for diversity while proving that it offers something other platforms don't.

Understanding Market Position and Needs

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To identify a company’s USP, it’s important to first understand its place in the market. What are the particular strengths of the company, and what areas need improving? How do customers perceive the company’s brand in relation to its competitors, and is this desirable or detrimental?

During these early stages, it’s wise to research the competition to identify any flaws in their services. This could indicate gaps in the market to exploit, or inform a marketing strategy that highlights these pitfalls.  It’s even worthwhile to research other sectors to see how different competitors differentiate themselves.

Countless valuable companies have emerged by identifying gaps in the market, but few are as successful as Uber. The company redefined the taxi industry with a USP of matching passengers with nearby drivers via location services and a user-friendly app. It also leveraged dynamic pricing and versatility in its services to stand out from the competition.

Crafting the USP

After this research has been done, it’s time to start formulating a USP. If the company is already established and has a reliable customer base, don’t hesitate to reach out to customers to ask for their feedback. Pose questions that relate to what it is about the company’s products or services that make them return.

It could be anything from servicing a particular location to the use of technological innovations. Focus on the specific elements of why the product is beneficial to a targeted demographic. Once this is identified, create a USP statement that is simple and memorable. For example, consider the online design platform Canva, with its USP of “empowering the world to design”. This simply communicates the product, which is an online graphic design platform that provides user-friendly tools to build presentations, graphics, and professional documents. 

Common USP Pitfalls

One common mistake that businesses make around USPs is a failure to adjust them over time. Company leaders should constantly be reassessing their market position and product offerings and comparing them against the competition. This not only will reveal areas of growth potential, but also new ways to market the products.

It’s also important to keep USPs short and ensure that they are genuine claims. Failure to follow through on a promise will limit conversions and impact a business’s reputation.  It’s also important to be as specific as possible and highlight something that’s a true differentiator. If the scope of the USP is too vague, then it can likely easily be challenged. 

If, for example, a company's USP is a claim to offer the most competitive prices, this could quickly be undercut and the USP nullified. Choose an element that is at the core of what makes the product special and highlight that. Remember that the point of a USP is that it's unique.

The Power of a Strong USP

By formulating a concise, effective, and memorable USP, companies can ensure that they stand out in a crowded marketplace. The best USPs are developed after a careful assessment of competitors and an honest evaluation of what sets their products and services apart.