The term Unique Selling Proposition (USP) was first coined by Rosser Reeves back in the early 60s and misused ever since. It's now common business jargon thrown around by many and truly understood by few. In recent times the USP has gotten a bad rap due to its constant misuse... so let's take a closer look.
What is a Unique Selling Proposition (USP)?
Here is Reeves 3 part definition from Reality in Advertising (1961):
- Each advertisement must make a proposition to the consumer. Not just words, not just product puffery, not just show-window advertising. Each advertisement must say to each reader: "Buy this product, and you will get this specific benefit."
- The proposition must be one that the competition either cannot, or does not, offer. It must be unique—either a uniqueness of the brand or a claim not otherwise made in that particular field of advertising.
- The proposition must be so strong that it can move the mass millions, i.e., pull over new customers to your product.
And to be a little clearer, some good examples are:
- Domino's Pizza: "You get fresh, hot pizza delivered to your door in 30 minutes or less -- or it's free."
- FedEx: "When your package absolutely, positively has to get there overnight"
- Dove: "Won't dry your skin like soap can."
Tom Monaghan created a USP for Domino's Pizza that revolutionised an industry. Now, we take for granted fast pizza delivery but Domino's Pizza used this one consumer frustration to grow its business for about a decade. The story is quite fascinating but since I only have anecdotal info on it we'll leave it for another day when I can do some more research.
Bad USPs are everywhere
Most businesses don't have a USP... the owner's haven't sat down and figured out why they're in business and why clients would want to buy from them. Just because you're a plumber... why should you fix my plumbing?
The 2nd biggest problem is the business owner doesn't put their USP out front for everyone to see. I constantly find this with clients and the first question I always ask is Dan Kennedy's classic copyright protected question of the ages:
"Why should I choose to do business with you versus every other competitive option available, including doing nothing at all or whatever I am doing now?"
And the strange thing is... most clients have really good answers. But the problem is they don't state it anywhere in their marketing or on their website.
Sometimes I'm given a bland answer like "we have the best service." Compared to what? How? And can you prove it? Then they'll tell me their story and they really do have great service... but they haven't spelled it out.
It's easy to say you have "great service" - and most businesses say they do - but until you prove it your words are meaningless. That's why I'd like to rework the USP concept a little...
Introducing the Unique Sales Promise
Now I hate to be a creator of new jargon and management speak but to me this wording is a lot clearer to understand. For every sale you make you are promising to deliver something that is unique to your business. This steps it up a notch... because you must always keep your promises.
The Unique Sales Promise has to be backed by a guarantee as well. It's no good promising something if you're not willing to back it up. Remember, we need to pull out all the stops if we want prospects to trust your business enough to try what you're offering.
Let's look at some examples
For the service industry that tends to miss appointments. Who has experienced plumbers who say they'll show up at 10am and don't get there until 4pm?
"We're there on time... or the jobs free"
For the restaurant that has friendly service...
"Our staff will be the friendliest people you've met all day... Guaranteed."
For the stain removal business...
"We'll remove your stain or hand you $100 on the spot"
While these examples are far from perfect I hope they give some ideas to get started. You'll probably find your USP will improve over time and I continue to improve my own as well.
Find the biggest frustration and eliminate it
[Before you take this the wrong way and think it's some kind of pitch... I'm not taking new clients right now so don't even ask.]
Let's take my business, I think it's incredibly frustrating to spend money on marketing and not being able to measure the results. I believe if you spend a $1 on marketing you should at least get back your $1. So my Unique Sales Promise for my clients is:
"More money from your marketing... Guaranteed."
So if my clients don't make more money from my work I give them a complete refund... and no it hasn't happened yet... *phew*
Is it a big promise? Yes. Do I take on a lot of risk? Yes. But it gets me clients that stay around a long time.
A plea about price
While this deserves an entire new article... I just want to point out that you should never position your business as the "cheapest" or focus on "great prices." This is not a sustainable business advantage and you will always find someone willing to slash their prices to beat you.
If you're the cheapest in your market... raise your prices now. If you have to up-skill to do it - fine - but do whatever it takes to raise your prices at least to the level of the competition.
I also have a problem with being "affordable" - affordable for who? A homeless person or a billionaire? - and "value for money" - every sale that takes place offers value for money or the customer wouldn't buy it. This is known as supply and demand.
What you do next...
Have a think about what exactly your business offers that is unique. Ask the Dan Kennedy question and put your answer into a nice, easy to understand format. I think you'll be pleasantly surprised with how effective a Unique Sales Promise can be.
A timely article Craig because I am updating my coaching notes on the USP today and I wrote about the ESP – the emotional selling proposition – last week on my own blog (see link on name if you are interested).
The Dan Kennedy question is a classic which I always find myself going back to.
If you can’t answer it, people buy from you for price (which as you say is a bad idea) or convenience but that’s also a fragile advantage for customer loyalty.
Hey Paul… thanks for stopping by.
I like the thoughts on the Emotional Selling Proposition and I think it’s important for people to realise consumers decide to buy emotionally but then need to justify their purchase rationally. I have might have to write another post on that one subject for another day.
However, I think that staying “unique” is important though even though I didn’t go into much depth in the article. I would put the unique offer in front of the emotional appeal simply because I believe it’s easier to structure your marketing that way. If there is too much focus on the emotional appeal without backing it up with a solid reason for purchase then you run into all sorts of problems.
It’s the whole discussion of “sell the sizzle, not the steak” which is fine as long as your steak is actually good. Plus the “sizzle” will vary depending on the unique benefits of your steak. For example, the expensive quality steak has different emotions attached to it than the cheap, discount butcher.
As you pointed out in your post unique doesn’t mean you have to be the only one in the world with a particular appeal. It just means you have to be unique to those you are compared with. A web designer doesn’t have to worry about competing with every web designer in the world… they just need to secure their local area.
I believe it was Seth Godin that pointed out you should aim to be the best in the world at what you do… but you define the size of your world. It might mean your local town, country, or the literal entire world… that’s the business decision you have to make. The trade-off being as your “world” expands you will probably have to increase your focus on just what you’re the best at.
Ok… I just need to wrap this up or I’ll be here all night. I think the important thing to remember for most business owners is you don’t have to get everything right to be successful beyond your wildest dreams. In most cases, if you just get 10% of marketing right and continue to learn you’ll be a million miles in front of your competition.
Thanks for making me think Paul!
Craig
[...] I want to follow up on my post about the Unique Selling Proposition or Unique Sales Promise as I prefer to call it. I think the concept of being unique needs a little [...]
Hi Craig, USP idea is catching on at last ! It wouldn’t be to hard to come up with something based on Domino’s but will that come up against copyright ?
Hi Patrick,
Good to hear things are clicking. Now I’m not a copyright lawyer but since you’re in a completely different market I don’t think your final version would be close enough for any claim like that. What you do have to be careful of though is USPs and slogans that are trademarked.
Plus is fast delivery really something your market wants?
Craig
I see what you mean I think. My idea was to strike while the iron was hot, it might give me the inside running. Sometimes people are excited that I can make myself available so quickly after their phone call that I can be reasonably sure that they will accept my price, that was my thought behind the idea. Sometimes they ask me to come around a bit later for reasons only known to them, but that also works in my favour because they see that I’m flexible as well.
By the way that website I have given to you doesn’t exist – it’s a prompt for you, you can do something about it when you are good and ready there is no rush.
Hi Patrick,
Well maybe fast and flexible is your USP then? Maybe people are frustrated with waiting a long time for service in your industry… the best way to find out is to ask some of your current clients why they choose you and what their biggest frustration about your industry might be. Ask what would make the ideal service provider for them.
I noticed the website and we’ll get there… one step at a time my friend
Craig