What is a USP?
According to Abbreviationfinder, USP means unique selling proposition or unique selling point. What is meant is a unique selling point of a product or a company that ONLY has this product or company and the competition does not.
What do you need a USP for?
The USP communicated as part of marketing measures is intended to ensure that the product convinces the customer because of the unique sales argument and moves them to buy. Due to the huge selection of products and services, consumers are increasingly spoiled for choice, which is why it is all the more important for companies to score points on the market with an outstanding unique selling point .
USP: An example
One computer manufacturer has been proven to make the lightest laptop in the world He can exploit this USP in his communication until a competitor brings a lighter laptop onto the market . Another USP can be a unique, secret family recipe or a position in the market, such as market leadership.
What is a USP?
So that a unique selling proposition of a product can actually be defined as a unique selling proposition, it has to cover three different points.
- Target group relevance
- Defense capability
In addition, a USP should also be economical. This means that the product does not generate so much effort that it cannot be covered by the income.
If a product is one of hundreds or thousands and does not stand out from the crowd, it is probably more generic. That is why the manufacturer should make sure to produce something unique or to give the product a unique feature.
Target group relevance
A great product is pointless if it is not adapted to the needs of the target group and is therefore hardly sold. Companies need to get an overview of what their customers want and need. The latest features on a smartphone or laptop, for example, are of no use if the customers actually want a sharp camera or larger storage capacity.
Ultimately, the product must also be able to prove itself to the competition. The promised attribute, for example the camera, must also work as advertised and convince customers that this product is better than others.
Which attributes can be used as USP?
Companies have various options for defining their USP. It is important that the USP relates to the customer’s needs and is shown clearly and in a way that is easy to understand.
Nowadays you can make a price comparison for almost everything on the Internet in order to get the best offer at the lowest price . Companies can take advantage of this. For example, if you offer a service, a first appointment that is free of charge can attract customers. You can also advertise products with price advantages. For example, Saturn has made a name for itself for years with the slogan “Avarice is cool”. If you make the price a USP, you have to be careful not to be stamped as a cheap supplier. For some offers, customers like to spend a little more money if the product has proven itself or is exclusive.
A good price doesn’t help much if the quality is not right and customers are dissatisfied because of it. That is why the quality can also be used as a USP. A company can position itself by standing out from “mass producers” and putting quality first – then the price can often be a little higher. Various companies can use this tactic, be it for high-quality clothing, furniture or even food.
When we order something, we want it in the mailbox yesterday. Time is money and hardly anyone has enough of it in a stressful everyday life. Companies can benefit from this by offering overnight or express deliveries, such as Amazon does, for example. This saves the customer effort and waiting time to receive his product.
New inventions are exciting and generate interest. However, companies do not have to reinvent the wheel for this; it is sufficient to update a few features. Be it the color of a product, the technology or the size. A vacuum cleaner may be a well-known household product, but the cordless editions brought something new that made cleaning easier for many.
Environmental protection is trendy and will probably remain so for a while. So it makes sense to start here for the USP . The brand equipment, for example, sells clothes such as hoodies or hats, and for each product sold, they plant a tree. In this way they combine their products with a benefit for the environment .
USP in marketing
When a company has found its USP , it has to be communicated – online as well as offline. USPs can be featured in slogans and advertisements , but it starts with the website . The website is often the first point of contact for potential customers, which is why it is crucial that all relevant information can be found there. The unique selling point should be clearly integrated on the website, for example by showing the most important advantages of the product or service in a short text or bullet point. To use NIKIN as an example again: The logo itself is a tree and when you go to the website, it is at the top how many trees you have already planted.
What is the difference between USP and UAP?
In contrast to the USP, the UAP – unique advertising proposition – is not a unique product attribute, but a unique advertising promise. The market for products is incredibly huge, and finding a USP that is actually that unique can be difficult, depending on the industry.
This is where the UAP comes in. Because even if a company’s product has a special characteristic that others may also have, advertising can set you apart. A certain feature is highlighted in advertising and put in a super light. The company makes sure that only they use the UAP and can thus consciously differentiate themselves from the competition in advertising.
A conclusion on USP
It is important for companies to stand out from the crowd with a USP. There are thousands and thousands of options available to customers and you have to be able to convince them of your own product with a unique selling point. This characteristic must meet certain criteria – uniqueness, target group relevance, defense capability, economic efficiency – in order to apply to the definition of a USP.