Learn the differences between leads, prospects, and opportunities. Understand how to turn leads into prospects and opportunities.
A unique selling proposition (USP) is a value statement that explains why your business is better than the competition. Typically written as an engaging slogan, the USP expresses a key differentiator that's valuable to your customers yet neglected by your competitors, whether that be outstanding service, low prices, or some other factor. Businesses research their audience to find their differentiator, then write a USP to use in their marketing material and sales pitches.
Businesses create a USP to communicate to potential buyers how their brand, product, or service stands out from the other businesses they might be considering. USPs are used throughout sales processes by both sales and marketing teams. Marketers typically place their USP across their marketing assets (e.g., website, marketing emails) to get potential customers into a buying mindset during lead nurturing. Salespeople use the USP to craft their full sales pitch.
USPs most commonly manifest as slogans (around 4-8 words), which are used as headlines for advertisements like social media ads and for web pages like the home page, product page, and landing page. Sometimes businesses will also add a short blurb underneath it elaborating on the USP. Employing a USP requires three overarching steps related to research, writing, and strategic usage:
To create your own effective USP, start by identifying your target audience so you can speak to their desires. Next, brainstorm some differentiators using various methods like interviewing your customers and examining your competition for gaps in their offerings. From there, pick a few of your most unique value propositions and turn them into first drafts of your USP, which you’ll then revise and A/B test. Lastly, use the winning USP to support your marketing and sales strategies.
If you look at enough USPs, you’ll start to notice that most of them express one of seven common value propositions in their own unique way. This includes things like price, service, logistics, features, and more. Before writing your USP, you can learn about these value propositions and see if you can use them to position your product as better than your competition’s.
Below are seven of the most common value propositions:
If you’re the low-cost leader in your industry, centering your value proposition around the money your customer will save is a good idea.
Affordable price USP example
A company that reduces friction during the purchase process by delivering quickly, offering free installation, or setting them up with an expert advisor offers immediate value.
Convenient buying process USP example
Some USPs rely on the long-term value or reliability of a product relative to others in the space. This communicates to your target audience that they'll need to buy your product less often than if they choose a competitor.
Long-lasting value USP example
If your product or service has a feature, offering, or use case that your competition doesn’t offer, or if you serve a different market from your competition, make that clear.
Unique feature USP example
If you offer better customer service and a better overall customer experience when compared to the competition, this could be a great angle for your USP.
Quality service USP example
Some USPs focus on how the business helps underserved communities. That could be donating a percentage of profits to a charity or nonprofit organization or using sustainable business practices that protect the environment.
Corporate responsibility USP example
If your competitors’ products are complex, and yours is simple, share that with potential buyers. This is a common tactic in the software industry.
Ease of use USP example
Although they're known to be effective, you don’t have to use these value propositions. If you think of another reason why your business is different from and better than the competition, use it. Now that you know the basics, it’s time to start creating your own USP.
The process to building an effective USP starts with identifying your target audience and doing research to find your unique value proposition. Next, you’ll pick two value propositions and write out some rough draft USPs before revising and testing them. Lastly, you’ll use them to create your sales pitch, better advertisements, and arresting web copy. Check out these three main steps below, and expand to see details on the substeps involved in each.
You have to do research to figure out which of your value propositions is unique and valuable enough to deserve the spotlight in your USP. Of course, what’s valuable depends on your audience’s tastes, so first identify your customers and their common frustrations. Next, ask your customers why they chose you and investigate your competition’s USPs. By the end of this process, you should have a key differentiator you can use to write your own USP.
It’s important to first choose and understand the audience segment you want to target with your USP. That way, you can pick a differentiator they want and write it in a way that speaks to their interests and values. To form a solid understanding of your audience, create a customer profile that highlights your existing or target audience’s demographics, cognitive attributes, pain points, and more. Here are the seven steps for creating a customer profile:
A completed customer profile will give you plenty of intel to work with as you write your USP. Plus, you can use that profile to create your buyer persona. Having this document close by can help you write your USP since you can pretend you’re writing it directly to them, which can keep you focused on making the language interesting to your audience.
It’s time to start gathering research data so you can choose the most unique and desirable value proposition to communicate. Often, a good place to start is with the frustrations your buyers in your industry typically have with your competition. They might have pain points with the buying process, price, durability, or other factors that you can address in your USP.
Below are the main ways to uncover common customer frustrations:
As an example, perhaps NYC renters are fed up with poor service from their rental management companies. If a property manager was known for their exceptional service, that’d make a great value proposition for their USP. Challenging industry norms that people dislike is a great way to spark interest in potential leads and gain their trust.
If you're having trouble thinking of ways you differ from the competition, just ask your customers. They’ll happily tell you why they chose you over the competition, and their answers can clue you into your most valuable key differentiator. If you’re a new company and don’t have customers just yet, you can still interview potential buyers in your niche.
Regardless, follow these steps to conduct interviews:
After engaging in these interviews, you might find that a lot of your customers said your software was the most customizable tool they’ve come across. That’s great material for a USP. Conducting interviews is a reliable approach to find long-lasting value or unique feature value propositions.
Another way to find a differentiating value proposition is by reviewing your competitors’ comparable products or services and looking for any gaps in their offerings. A CRM software company might discover that all of its competitors make users pay for a valuable feature they offer in their free plan. Communicating that lowest-priced value proposition could be their USP.
After you’ve done this research, you’ll likely have multiple value propositions that you feel would work well in your USP. But, it’s time to narrow them down and pick the most unique and valuable, and turn that value proposition into a shining USP that’s written down and usable.
Once you’ve gathered your data, decide on one or two value propositions that are most unique to your business and most valuable to your target audience. We say two because some businesses combine them into one USP. For example, Pipedrive highlights that their platform is easy to use and built especially for salespeople:
Remember, the value proposition(s) you choose should be something your customers strongly desire and your competition does poorly or not at all. Next, you’ll turn this into two rough first drafts that you can test against each other.
Now that you have your value proposition, write out two rough first drafts, each expressing the value proposition in a different way. That way, you can test them against each other later on. There are some best practices you can keep in mind that will guide you in this attempt.
Here is a framework for crafting your USP:
Don’t worry about being perfect. Just get your thoughts on the page. Because the first attempt will likely lack the zing a USP should have, it’s best to edit these first drafts in the next step and add some flair for memorability.
Now edit your rough drafts to create two short and memorable final USPs. Also, try to capture your brand’s voice in the final drafts. One of the best ways to gain inspiration for your USP is to expose yourself to other exceptional USPs. Study them and figure out why they work. Then apply those principles to your own. Later on, we offer examples of real USPs and share takeaways that explain their success.
Once you’ve written two functional USPs, test them against one another using an A/B testing process. That means you’ll split your ad campaign or email marketing audience into two and each will receive a different USP. Whichever performs better will be the USP you use going forward. Typically, better performance means higher conversion rates on the ads or web pages that host your USP.
Here are some steps to follow to test your USP:
Even after you’ve landed on a USP, it’s important to test it against other USPs from time to time. Or, you could simply tweak a few words and see if it performs better. That way, you’ll always be moving towards optimization. For more, check out WebFX’s beginner guide to A/B testing.
Now that you have a polished and tested USP, it’s time to put it to use. Plaster it across your website and ads, and use it to develop a sales pitch to use in one-on-one meetings with prospects. For your USP to do its magic, your potential buyers need to see and hear it.
Your USP should be included in your sales pitch so that prospects understand why you’re better than the competition. A sales pitch is a one- to two-minute value explanation that salespeople give to leads in an effort to convert them into customers. In the sales pitch, your USP will take a sentence form rather than the slogan form it assumes in your advertisements.
Here’s an example of a sales pitch with the USP: “Unlike other {Your Company Type}, we offer {Unique Value Proposition}, so our customers {Avoid/Receive} {Pain or Benefit}.”
For more information on sales pitches, read our guide on how to create and deliver a sales pitch. There you’ll find a sales pitch script and template, delivery tips, and examples.
Place your USP front and center on ads and web pages that need to sell your solution to the customer. That’s often the home page, product or service page, and landing pages. Often, companies will make it the headline of these pages or advertisements. Take a look at what your competition is doing for some ideas of where to put your USP. When you’re on the fence about adding it, it’s best to err on the side of inclusion. Show that winning phrase off.
Studying USP examples is a great way to gain inspiration for your own USP. Below, we’ve listed USPs from such reputable companies as EY, Dell, Robinhood, and TOMS. Each USP corresponds with one or two of the common value propositions we discussed earlier. And the majority of them show the three essential elements of a successful USP: research, writing, and strategic usage.
Value It Communicates: Corporate responsibility
EY’s USP “builders of a better working world” falls under the category of corporate responsibility or social impact value propositions. EY focuses on helping not only their clients achieve success but also the communities in which they operate. The USP doesn’t explicitly express a unique offer, but the slogan is memorable and paints EY as altruistic and visionary, which is attractive to their clients.
Value It Communicates: Convenient buying process
Dell Technologies’ USP “Wherever your business journey takes you — we’ll be there with you” is communicating a better purchasing process value proposition. It’s clear when supplemented with the subheading telling readers they have free access to Dell’s Technology Advisors. Buying technology for a small business can be difficult, so this value-add is desirable to potential customers and likely uncommon with competitors.
Value It Communicates: Unique feature
MasterClass’ USP is “MasterClass is where anyone can learn from the world’s best.” It’s an impactful unique feature value proposition. No other online course platform offers access to courses taught by famous experts like Malcolm Gladwell, Gordon Ramsay, and Martin Scorsese. Their USP is attractive to potential buyers because it emphasizes that anyone can learn on the platform, no matter their skill or education level.
Value It Communicates: Long-lasting value
Saddleback Leather uses the USP “They’ll fight over it when you’re dead,” which is a form of the durable value proposition, as it implies it’s so durable that it will outlive the owner. People dislike having to replace expensive bags and briefcases, so this is a valuable promise. It also separates Saddleback from the competition since many bags are prone to wear and tear. Lastly, it's memorable and captures the brand’s voice.
Value It Communicates: Ease of use
HubSpot CRM uses the USP “An easy-to-use CRM. Who knew that'd be revolutionary?” It's an example of an easy to use value proposition. HubSpot is separating itself from its competitors that sell CRM software that’s often difficult to set up and train employees to use effectively. The second sentence of the USP sympathizes with leads who have tried other CRMs and become infuriated at their complexity — this builds trust.
Values It Communicates: Ease of use and affordable price
Wave Invoicing’s USP “invoice software that’s easy and free” is a combination of two value propositions: easy to use and most affordable option. Many of the Wave’s competitors charge fees for invoicing, to the annoyance of their customers. This USP, therefore, lets potential customers know immediately that their invoicing app is completely free of charge, something they’ll find valuable to their small business.
Value It Communicates: Convenient buying process
Warby Parker has a USP that communicates a better purchasing process. The ability to “try 5 frames at home for free” helps generate leads by removing risk or hassle from the purchase. Potential buyers don’t have to go to a store to try them on, which differentiates Warby Parker’s service from other brands. Though the USP is more straightforward than memorable, it does a good job influencing website visitors.
Value It Communicates: Quality service
UpLead's USP is “B2B prospecting with 95% data accuracy,” a form of a better service value proposition. Prospecting tools can be known to sometimes have inaccurate data, which can be frustrating to salespeople because an email sent to a faulty email address wastes their time. So, UpLead is doing a nice job of telling leads that they offer high accuracy, thus better service.
Value It Communicates: Ease of use
Robinhood’s short USP of “investing for everyone” is an easy to use value proposition. They’re declaring that anyone, regardless of investing knowledge or funds, can easily get into investing using their service. They go on to explain in the subheading that the investing is also commission-free, further separating them from competition, which often takes a percentage of earnings from customers as commission.
Value It Communicates: Corporate responsibility
TOMS has a USP that is focused on sharing a corporate responsibility value proposition: “1/3 of profits for grassroots good.” Other brands might talk about their comfort or price, but TOMS focuses on how it helps communities, thereby promoting itself as the company that gives back. This differentiating factor should capture customers who value charity and want to feel like they’re making a difference when shopping.
Value It Communicates: Convenient buying process
Carvana’s USP is communicating its better purchasing process value proposition. “We sell cars, but we’re not car salesmen” tells consumers that their salespeople won’t use any of the shady tactics buyers often correlate with car salespeople. Carvana goes on to suggest that they’ll make sure their buyers are satisfied before locking them into the purchase. It also uses a trustworthy voice.
Keep your eyes peeled for other USPs that you come across, and how effective they are in their lead nurturing efforts. Think of your USP as a work in progress, and every so often test your existing USP with a potential new one as you continue getting inspiration from great ones that you come across.
A unique selling proposition expresses how your brand or solution is better than similar companies and is used throughout the sales process. Businesses must write a USP that contains a significant differentiator that customers care deeply about. Salespeople can then expand on that short sentence in their sales pitch. To further bolster your understanding of a USP and a sales pitch, check out our article on the most important sales terms.
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