Why You Need a USP

One of the first steps in creating a marketing plan is
developing a USP, or Unique Selling Proposition (sometimes
called a Unique Selling Point or a positioning statement). A USP
is an ultimate statement of benefit, or the single most
compelling reason why a customer should buy from you over your
competition. In a short, meaningful, specific sentence, a USP
describes your primary distinguishing feature to your target
market and lets them know what's in it for them if they do
business with you.

According to Rosser Reeves, the author of "Reality in
Advertising" who coined the USP, the three requirements for a
USP are:

1. Each advertisement must make a proposition to the customer:
"buy this product, and you will get this specific benefit." 2.
The proposition itself must be unique - something that
competitors do not, or will not, offer. 3. The proposition must
be strong enough to pull new customers to the product.

Some of most well know USP examples are: Domino's Pizza - "You
get fresh, hot pizza delivered to your door in 30 minutes or
less."

FedEx - "Your package absolutely, positively has to get there
overnight"

M&M's - "The milk chocolate melts in your mouth, not in your
hand"

Wonder Bread - "It helps build strong bones 12 ways" But what if
such a proprietary advantage does not exist? What if your
product is basically the same as your competition's, with no
special distinguishing? Check this out: Once M&M established
their USP: M&Ms melt in your mouth, not in your hand" - what
could the competition do? Run an ad that said, "We also melt in
your mouth, not in your hand!"? It reminds me of an example from
the book Scientific Advertising by Claude Hopkins that has gone
on to become a classic story used to describe USPs. It goes
something like this:

"Schlitz Beer had hired Hopkins to increase their falling market
share. At the time the beer companies were frantically buying
bigger and bigger advertising space to promote the word PURE.
Everyone said their beer was pure, but no one bothered to
explain to the public what "pure meant" this meant.

The first thing Hopkins did was take a tour of the Schlitz
Brewery. He was shown plate-glass rooms filled with filtered air
where beer was dripped over pipes to cool without any
impurities. He was shown huge expensive filters that were each
cleaned twice daily to ensure the products purity. He notices
that each bottle was sterilized four separate times before being
filled with beer. He was even shown 4,000 foot deep artesian
wells dug to provide the cleanest, purest water available, even
though the factory was right on the shore of Lake Michigan
(which at the time was not polluted and could still provide
clean water).

After his tour Hopkins exclaimed, "Why don't you tell people
these things?" The company responded that every beer
manufacturer does it the same way. To that Hopkins replied, "But
others have never told this story..." And Hopkins went on to
create an advertising campaign that explained to people exactly
what makes Schlitz beer pure. It was highlighted with the
tagline "Schlitz beer bottles - Washed with live steam". He told
the same story any brewer could have, but he gave meaning to
purity. That is what took Schlitz from 5th place to tie for 1st
place in market share."

Creating a USP for Your Business

When developing the USP for your business it can be helpful to
try thinking in the customer's point of view: why should they
buy from you, not why you should sell to them. Your USP should
state what the most important benefit is to the customer in the
target market you are trying to reach. Trying to appeal to
everyone will not give you an effective USP. Focus on the
clients that are your greatest income makers and direct the USP
to them. You want to attract the ideal client, not just any
client.

Here are some questions that a USP should answer:

- What problem are you the answer to? - What quality makes you
different, better or more desirable than the competition? - What
opportunity can you present to potential customers that others
can or do not? - Why should people buy from you?

When answering some of these questions, it is not enough to say
"Our service is better," or "Our product is better quality."
These statements are not compelling reasons to choose your
business over any other business.

Also be sure to focus on a uniqueness that is actually
meaningful to your customers. Building your USP around a feature
is relatively unimportant to potential customers, and will not
move them to try your product or service.

You can start by crafting a statement that defines what makes
your product or service unique and special. You might want to
start with a long statement of two or three paragraphs, and then
work from there. If you are already have an existing business,
ask clients what they value most about the way you do business?
And also ask yourself: "In what ways do I benefit my customers?"

Continue editing your statement until it is short, snappy, to
the point and describes your uniqueness in a way your customers
care about. Once you get your USP finalized, start sharing it
with your target market, and let them know what you can do for
them. Plaster your USP in your marketing materials, at
networking events, on your business cards, on your website and
any other time you are given the opportunity.

Just remember, a USP is free, easy to duplicate and communicate,
and above all, tells your prospects what's in it for them if
they do business with you. Be sure to take the time to properly
develop a USP that will work for you, your business and your
target market.

About the author:
Justin Michie is a well respected Internet Marketer and author
of the brand new Internet Marketing book "Street Smart Internet
Marketing", found at:
http://www.StreetSmartInternetMarketing.com. To download his
free ebook titled "99 Internet Marketing Tips - That You'll Want
to Know" go to http://www.99InternetMarketingTips.com. For more
free articles or to sign up for Justin's newsletter check out
http://www.JustinMichie.com.