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. This USP should be communicated properly to the customers to take its full benefits.
Table of contents
Table of contents
Why is it Important?
In the present world, where a lot of competition prevails in the market, a unique selling proposition plays an important role in growing businesses. If the company has a clear USP, it enables the company to distinguish itself from the competitors, creating a positive attitude of the customer toward 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. In this case, the main targets for the company are the customers that focus more on the uniqueness of the product or service quality.
#2 – Prices of Product or Services
When the company sells the products or services at a par less than its competitor’s, this would differentiate the company from the competitors attracting customers. The company, however, should not compromise the quality of the products or services. Rather, it should focus on the value because if there is a difference in quality, the customer will not be satisfied, making the product less attractive. Thus, affordability is one of the important aspects for most customers, so with the lower prices, the company can create a unique selling proposition.
#3 – After-Sales Services or Company Support
When making purchases, most customers nowadays look for the after-sales services provided by the company’s seller, i.e., where the customer can approach in case of future problems. Therefore, if there is reliable support from the company for its customers, be it in the form of valid return policies, helpline numbers, or proper guidelines. It would help in the unique selling proposition of the company.
Who Decides USP?
A unique selling proposition describes the company’s unique characteristic or feature that will help it stand out from its competitors, i.e., what the particular business stands for. Every company has a unique selling proposition, created by considering different factors such as the target audience, the product sold or services offered, etc. So, the company’s management decides the company’s unique selling proposition 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. Therefore, it is essential to develop a strong USP to stand out from the competitors in the market to attract customers. 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. The company needs to consider some 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 customers’ interest.
- Lastly, communicate the USP to the customers by making the promise to fulfill the USP created for them.
- A company operates a food chain worldwide and sells only one product type. It promises the customer that if the order is placed for the product, it will be delivered within 40 minutes so that the product is hot enough to reach the customer. If the product does not arrive on time, the customer needs not pay the money, and if already paid, it will refund the amount.
- In this case, the company creates a unique selling proposition by promising to deliver the product within a specific time limit. If the products remain undelivered, the customer will get the same for free. It will attract the company’s customers and differentiate it from the competitors.
- This tool helps the company differentiate itself from its competitors by using unique product or service features, marketing strategies, etc.
- While formulating this, it is important to remember various elements that lead to creating a good unique selling proposition, like the easiness of the unique selling proposition so that it can be understandable. The difficulty in imitating the unique selling proposition by the competitors, the uniqueness of the unique selling proposition, etc. It creates interest in the customer in such a unique selling proposition.
- It will not only help in the short term for the company the creation of profits, but the same will be helpful in the long term as it will enhance the company’s brand image in the eyes of its customers.
This article is a guide to the Full Form of USP, i.e. (Unique Selling Proposition) and its definition. Here, we discuss three 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: –