Full-Form of USP (Unique Selling Proposition)
The full form of USP is a unique selling proposition. It is the unique characteristic of the product or services of the company that conveys or highlights the benefit of customers along with differentiating the company from its competitors in the market, providing it with an added advantage and this USP should be communicated properly to the customers in order to take its full benefits.
Why is it Important?
In the present world, where there is a lot of competition prevailing in the market, a unique selling proposition plays an important role in growing businesses. If the company has a clear USP, then it enables the company to distinguish itself among the competitors, creating a positive attitude of the customer towards the brand and ultimately leading to an increase in the business because a unique selling proposition gives a specific reason to the market to buy the product or services from the company.
3 Types of USP that Differentiate a Business
#1 – Product or Services
The company can have a unique selling proposition by selling the products or providing the services that differentiate them or make them superior to its competitors. The main targets in this case for the company are the customers that focus more on the uniqueness of the quality of the product or services.
#2 – Prices of Product or Services
When the company is selling the products or the services at a pr is less than it’s competitor, this would differentiate the company from the competitors attracting the customers. The company, however, should not compromise with the quality of the products or services. Rather it should focus on the value because if there will be a difference in the quality, then the customer will not be satisfied and thereby making the product less attractive. Thus affordability is one of the important aspects for most of the customer, so with the fewer prices, a unique selling proposition can be created by the company.
#3 – After-Sales Services or Company Support
At the time of making the purchases, nowadays, most of the customers look for the after-sales services provided by the seller of the company, i.e., where the customer can approach in case it faces any of the problems in the future. If there is reliable support from the company for its customers, be it in the form of proper return policies, helpline numbers, or proper guidelines, then it would help in the unique selling proposition of the company.
Who Decides USP?
A unique selling proposition describes the unique characteristic or the feature of the company that will help it in standing different from its competitors, i.e., what the particular business stands for. Every company has a different unique selling proposition, which is created by keeping in mind different factors such as the target audience, the product sold or services offered, etc. So, the company’s unique selling proposition is decided by the company’s management after considering all the internal and external factors prevailing in the market.
How to Develop Strong USP?
It is an important component of any solid marketing campaign. It is essential to develop a strong USP to stand out from the competitors in the market to attract customers. In order to develop a strong USP following steps should be followed:
- Firstly, the target audience should be identified and described while developing a strong USP because one should know the target audience to develop strategies considering them in mind.
- After describing the target audience, the demands of the audience, as well as their problem, should be identified.
- After that, a unique selling proposition or the distinct features that the company should be providing are to bed. It is important for the company to consider some of the key elements like the USP should be hard to imitate by the competitors, be unique in true aspect, easily understandable by the target audience, and be positive enough to create the interest of the customers.
- Lastly, communicate the USP to the customers by making the promise to fulfil the USP created for them.
- A company operates a food chain all over the world and sells only one type of product. It promises to the customer that if the order is placed for the product, it would be delivered within 40 minutes so that the product is hot enough to reach the customer. If the product does not reach on time, then the customer needs not to pay the money, and if already paid, then the amount will be refunded.
- In this case, the company creates a unique selling proposition by promising to deliver the product within a specific time limit, and if the products remain undelivered, then the customer will get the same for free. This will attract the customers of the company and differentiate it from the competitors.
- This is a tool that helps the company to differentiate itself from its competitors by using the unique features for its product or services or its marketing strategy etc.
- While formulating this, it is important to keep in mind various elements that will lead to the creation of the proper unique selling proposition like the easiness of the unique selling proposition so that it can be understandable, the difficulty in imitation of the unique selling proposition by the competitors, uniqueness of the unique selling proposition, etc. that create interest of the customer in such unique selling proposition.
- This will not only help in the short term for the company for the creation of profits, but the same will be helpful in the long term as it will enhance the brand image of the company in the eyes of its customers.
This has been a guide to the Full Form of USP, i.e. (Unique Selling Proposition) and its definition. Here we discuss 3 types of USP, why it is important, and how to develop a strong USP along with its example. You may refer to the following articles to learn more about finance –