Unique selling proposition (USP)
explained

What is a unique selling proposition

In brand development, a unique selling proposition (USP) is understood as a clear definition of what a brand offers in terms of a unique feature. It sets the brand apart from the competition and makes the offering attractive to customers.

The unique selling proposition of a product or service is often a unique benefit that is not offered by other market participants, or not offered in the same way or to the same extent. This can be, for example, exceptional service quality, a transparent process, particularly sustainable or local production or a product innovation. In addition, corporate culture, certain philosophies or values can be emphasized as unique selling points. The aim is to convey a clear, unique added value to customers.

Other terms are often used when talking about a USP or unique selling proposition:

The basics for an effective USP

The basis for a successful USP (Unique Selling Proposition) is a clear definition of what makes a product or service unique and how it offers benefits to the target group. 
A good USP is concise and easy to understand so that customers can grasp it quickly.

Types of unique selling propositions

Unique selling propositions can be of various types and relate to different aspects of an offer. The different types of USPs are listed and explained below:

Quality

A high-quality product can serve as a unique selling proposition by outperforming the competition in areas such as durability, design and additional features. As it is becoming increasingly difficult to stand out from the competition through quality alone, appearance and design are becoming more and more important. An appealing and well thought-out design can not only increase the attractiveness of the product, but also strengthen the brand image and thus positively influence the customer’s perception. By cleverly combining quality and design, companies can create a convincing unique selling point.

KitchenAid is an iconic kitchen appliance brand known for its outstanding quality, innovation and timeless design. 
Since its foundation in 1919, KitchenAid has built a reputation for robust and powerful food processors, mixers and other appliances that are appreciated by amateur chefs and professionals alike.KitchenAid’s unique selling points lie not only in the technical precision of its products, but also in their unique design. The characteristic shape and the many color variations of KitchenAid appliances have become a symbol of stylish cooking and baking.

Exclusivity

Exclusivity as a unique selling point enables the creation of a separate market. By targeting a product or service at a reduced target group, a brand can convey a feeling of specialness or luxury. This strategy goes beyond pure quality but focuses increasingly on offering an experience characterized by prestige. By deliberately limiting accessibility, attractiveness and desire are strengthened.

Rolex is a world-leading brand in the luxury watch segment, renowned for its outstanding craftsmanship, precision and timeless design. Since its foundation in 1905, Rolex has built an unrivaled reputation for technical innovation and quality, but Rolex’s USP goes beyond the outstanding quality of its watches: it is the exclusivity they embody. Rolex watches are more than just timepieces, they are status symbols and prestige objects, coveted by an exclusive target group – not least because of their pricing. The brand strictly controls the production and distribution of its watches, which further emphasizes their limited availability and high value.

Price

A low price can serve as a USP, as it appeals to customers who are price-sensitive shoppers. This strategy is particularly effective if the company simultaneously ensures the quality and functionality of its products so that customers are offered excellent value for money.

IKEA offers inexpensive but high-quality furniture and home accessories. Thanks to efficient production and logistics processes and a self-assembly concept, IKEA saves resources and passes on its savings directly to its customers, appealing to a broad target group that is looking for good value for money. Despite the low prices, the company attaches great importance to the durability and functionality of its products, which strengthens customer confidence. In addition, IKEA offers appealing, modern designs that meet the tastes of a broad group. The combination of low prices, functionality and appealing design enables IKEA to clearly stand out from other furniture stores and secure a strong market position.

Service

Reliable and friendly service can be a decisive factor when choosing a company. Friendliness, reliability and availability can be important differentiators and selection criteria for customers. In particular, the positive handling of critical feedback or complaints can contribute to a company’s good reputation. Short waiting and delivery times can also influence the decision for a product and significantly increase customer satisfaction.

Amazon impresses with its reliable and friendly service and short delivery times. The first-class customer service is characterized by friendliness, reliability and goodwill – complaints are handled in an uncomplicated and customer-oriented manner, and Amazon also offers extremely short delivery times with its Prime Service, often as early as the next day. The combination of excellent service and fast delivery times has made Amazon the market leader in the e-commerce sector.

Social and ecological commitment

The emphasis on fair production conditions and sustainable business practices can be a strong unique selling point, especially in times of increasingly ethical consumer behavior. A certain philosophy in entrepreneurship or social and ecological commitment can particularly appeal to certain target groups.

One example of a company that has differentiated itself from the competition through its social and ecological commitment is Ecosia, a search engine that plants a tree for every search query. This innovative concept appeals directly to users’ environmental awareness and motivates them to use Ecosia’s services. Ecosia has established itself as a relevant search engine by creating a USP with its sustainability concept that clearly sets it apart from the competition.

Individuality

At a time when customers are increasingly looking for uniqueness, the possibility of individualization offers a valuable opportunity for differentiation. The personalization of products through customization, color selection, engraving or limited editions, as well as digital services such as personalized and user-oriented recommendations, show how important individual offers are for strengthening customer relationships. Personalized options not only allow customers to better pursue their own preferences, but also to build an emotional bond with the brand and the product. Individualization strengthens the uniqueness of the offer and thus also the appreciation of the customer.

Nike ID is an excellent example of product personalization. It allows customers to customize their shoes through a variety of personalization options. From the choice of colors and materials to individual engravings, Nike ID customers can create unique shoe designs that perfectly match their personal style and preferences. This form of personalization creates a deep emotional connection to the products – and thus to the brand.

Ecosystem

A comprehensive offering from a single source that covers many needs through one provider can be understood as an ecosystem. Such an ecosystem offers the advantage that customers do not have to search for several providers and acts as a unique selling point due to the reduced communication and administration effort. Customers appreciate the synergy effects that arise when they can use different products from a familiar ecosystem. This strengthens brand loyalty and promotes the use of other products within the ecosystem.

Microsoft Office is a software package that consists of a number of different programs. It forms a comprehensive ecosystem that offers companies and private individuals a wide range of productivity apps, security and storage solutions. The unique selling point of this ecosystem lies in the functionality and compatibility of the applications. The seamless integration between the various applications helps Microsoft Office to create added value for its customers through synergy effects.

Network

Through strategic partnerships, companies can offer their customers access to additional resources. Broad networking can help brands to open up new business areas, exploit synergies and thus offer their target group unique added value.

With its “Centurion Card” program, American Express is an outstanding example of using a strong network as a unique selling point. An exclusive membership not only grants access to premium services and exclusive events, but also opens the doors to a global network of partners. For example, Centurion Card holders benefit from a personal concierge service around the clock, special travel benefits and preferential access to events. American Express creates a unique service through the targeted linking with value-adding services and exclusive offers.

Developing unique selling points

In order to develop unique selling propositions, companies must first define their offering precisely and work out their positioning clearly. This includes identifying the target group, recognizing customer needs, determining the emotional and rational core benefits as well as factors that set the offer apart from others.

Target group: Who is the offer aimed at?

Define a specific group of customers who will benefit from the product or service: This step can be supported by a competitive analysis in which the products and services of other market participants are examined. The functions and features of the competitor’s offering are identified and compared with the company’s own offering.

Customer needs: What problem does the company solve?

The main problem or need of the target group that the company addresses and solves: Market research and customer surveys can be carried out to gain insights into this. This involves analyzing the specific challenges and needs of the target group and how the company specifically addresses them with its products or services.

Emotional and rational core benefits: How is the problem solved?

Identify how the product or service solves the problem on an emotional and rational level and what benefits customers gain from it: To help, a list of all value-added aspects of a service or product can be created and then prioritized in terms of customer needs. This step-by-step process of prioritization and elimination filters out the aspects that clearly differentiate the company from others.

What makes this solution different?

Description of the unique selling proposition that differentiates the solution from competitors’ offerings and makes it unique: The formulation of the USP is a summary of all the specific factors that make the company’s service unique and particularly valuable.

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A successful USP from the company’s perspective is created when the services communicated are unique, unmistakable and relevant for customers.

USP of a product vs. a service

When developing the USP, products and services can differ in their emphasis. While physical products are often differentiated by material characteristics, services face the challenge that their uniqueness is based on characteristics that are not tangible for customers at first glance; their special features are based, for example, on aspects such as the way the service is provided, the qualifications of the provider, the interaction with the customer, the flexibility or the speed of service provision. Ultimately, communication and presentation play a decisive role in highlighting these features and making them clearly recognizable to the target group.

Limits of a USP and the need for adaptation

An effective unique selling proposition (USP) is subject to changes in the competitive environment. There is a risk that new companies will enter the market and reduce the relevance of your own USP, for example by offering a lower price or a product innovation. Companies must react flexibly, regularly review their own USP and, if necessary, refine, expand or completely redefine it. Constantly analyzing the market and target group is crucial in order to successfully deal with their changes.

Helder: Your partner for brand development and consulting

Finding a unique selling proposition and marketing it effectively can be a challenge – especially in saturated markets. Helder helps companies to identify their unique market value. With the help of a strategic competitive and target group analysis and the joint development of relevant content, we support you in identifying your individual USP.