In this advice video for entrepreneurs, I'll discuss what is a Unique Selling Proposition or USP, and talk about how to find yours.
Forbes magazine explains that your unique selling proposition is incredibly important by saying, "a critical asset that should serve as the core tenet of your marketing messaging." Your unique selling proposition should explain what your company offers that no others can. It should explain why you're the right choice to help a customer solve their problems. It's also known by its acronym, USP.
What is a unique selling proposition? A unique selling proposition is a phrase or short statement about what competitively sets you apart from the marketplace in the eye of the customer. How do you discover your unique selling proposition? Your brand may actually have more than one unique selling proposition. To define it, let's break it down into its 3 parts: Unique, Selling, and Proposition.
UNIQUE
A unique selling proposition first must be unique within your marketplace. And it can't just be anything that's different about your brand compared to the competitors, it needs to be something that's unique that the customer also cares about with regard to what you're selling. So the first step here is to identify your customer. What problem in the customer's life does your product or service solve? What other options does your customer have to choose from besides you? Many times those who have an innovative product think that they have no competition - but don't forget that doing nothing is also an option you're competing against. Your customer can just choose to live with their problem instead of purchasing a product or service to solve it. Next, think about the evaluation criteria that your customer is using to evaluate you against their other options which are your competition. Now, how do you uniquely satisfy one or more of those criteria, in a way that you can prove?
SELLING
Your unique selling proposition must be sales-oriented. That means it must be enticing, memorable, bite-sized, and interesting. If you're not sure if it's interesting, say it to some people and see if it passes the "eyebrow test". The eyebrow test is a concept coined by Sam Horn, author of business advice books such as "Someday is Not a Day in the Week" and "Pop". The concept is this - if you are pitching an idea to someone or telling them your unique selling proposition, watch their eyebrows. If you have no movement, they're not that interested. If the eyebrows furrow, even a little bit, then what you're saying is confusing or unappealing. The goal is to get them to raise their eyebrows - this means you’re interesting, and they're interested.
PROPOSITION
Lastly, your unique selling proposition is just that - a proposition. What is a proposition? A proposition is a proposed scenario between two parties: I propose that I do this and you do that. What are you proposing as a solution to the customer's need? This is about telling them what's in it for them. You state what you're offering for purchase. This is the part of the unique selling proposition where you’re making the case to close the sale.
WILD CARD
I would be leaving something out if I didn't introduce this wild card. The concept of a unique selling proposition has been around since the 1940s. However in our modern economy, the customer increasingly cares about things like a company's motivations, environmental responsibility, and community efforts. These feel-good factors can be a compelling driver for sales. It's not the only reason why people will buy from you of course, but if all other factors are the same between you and the competition, it might be what gives you an edge and wins you the sale. As entrepreneurial business coach Marie Forleo puts it, "It's not just about what you sell but about what you stand for." Retail studies show that people make the decision to purchase something with their emotions and gut, and then they use their brain to rationalize the decision and justify the purchase. So tell your story. Wear your heart on your sleeve. Show passion. Stand for something. Be prepared to back up any do-good claims or promises by being transparent about business practices that prove what you say is true.
As an example, consider Yvon Chouinard, founder of Patagonia, maker and seller of outdoor gear. In 2020 he started selling food items under the sub brand Patagonia Provisions. This is a huge departure from the rock climbing equipment, backpacks, camping supplies and apparel that have been core to their brand for decades. Patagonia has a fiercely loyal customer base that is inspired by their devotion to sustainability, and Patagonia knew that to win sales, a heart-centric approach would be smart. On their website you'll find a passionate essay penned by Yvon where he talks about why they started selling food - and it has everything to do with his mission of making the world a better place through sustainable products and business practices - and this is at the core of all their food items. I wasn't even looking to buy food, but after I browsed the products and read his essay I found myself adding things to my cart - and telling my friends about discovering these products.
TAKE ACTION
For a DIY deep dive on how you can discover and hone in on your unique selling proposition(s), I can recommend this detailed article on business.com titled, "Follow This Process to Discover the Unique Selling Proposition of Your Business." It outlines a step by step process that you can follow along to formulate your unique selling proposition. If you need more help, there are numerous other YouTube videos about unique selling propositions and it's a common topic covered in many business books. Or if you're ready to work with a professional, you can reach out to me to refer you to a business coach or you can consider hiring a branding or marketing consultant like myself at Alicia Nagel Creative.
Do you have an idea for a branding or marketing topic that would help entrepreneurs thrive? I’d like to hear it! Please send me a message using the form at bottom of this page. Thank you for stopping by!
Since 2008 I've provided branding, marketing and graphic design services to over 100 brands as Alicia Nagel Creative. Hustle With Aloha is a project by Alicia Nagel Creative, with the mission of offering marketing, branding and design tools for start-ups and bootstrapping entrepreneurs to help set them up for success.
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