You may know your business inside and out—but do your customers? With 77 percent of consumers making purchasing decisions based on name recognition, it’s clear that branding matters. Defining and communicating your value proposition and unique selling proposition (USP) help your business stand out and resonate with your target audience. When done right, these propositions set your brand apart, making it memorable and trustworthy in the eyes of your prospects, customers, and other stakeholders.
According to Valerii Bezrukov, a digital marketing specialist at Accesto, “Your USP describes how your company stands out from the competition, while your [unique value proposition] UVP helps visualize your key brand promises that focus on solving their problems. Therefore, no matter where you promote, if you want to gain a competitive advantage, your company needs both.”
Understanding Value Propositions
Essentially, a value proposition is a clear statement that articulates the benefits of your products or services, how you solve customer problems, and ways you improve their lives.
A well-crafted value proposition taps into desires your customers didn’t even know they had. According to Harvard Business School, “a novel value proposition expands the market.” Apple embraces its value proposition of “Think Different” by introducing products that challenge the status quo. The value proposition for Slack, the internal digital communication tool, revolves around its ability to unify teams and simplify communication: “Make word life simpler, more pleasant and more productive.”
An effective value proposition is more than just the inner workings of a product or service. It’s about what makes it different, how it helps, and why it’s the best choice for your customers.
A well-crafted value proposition should answer the following questions:
1. Who is your target audience, and why is your product or service right for them?
Your value proposition should resonate with a specific audience, so it’s crucial to define who will benefit most and how. What do they value and what motivates them to buy?
2. What challenges does your product or service solve?
A value proposition comes from a rich understanding of your target audiences’ pain points, needs, and challenges. It clearly identifies how your product or services address those issues.
3. What are the benefits or outcomes for the customer?
Go beyond features and describe how your product or service can improve their situation. This may be saving time, reducing costs, or increasing efficiency. It’s important to show target audiences how the benefits of your offerings outweigh their investment.
4. How does your product or service deliver on its promises?
Explain why your solution is effective. This could include your approach, the technology you use, or the way your service is structured.
Here are some effective value propositions:
- HubSpot: Free CRM software that grows with your business.
- Grammarly: Great writing, simplified.
- Zoom: Connect with anyone, anywhere, on any device with Zoom’s reliable video conferencing platform.
- Dropbox: Safely store and share your files from multiple devices with Dropbox, the secure cloud storage solution.
Understanding Unique Selling Propositions
While a value proposition is specific to a product or service, a USP is about your brand. An effective USP answers one simple question: why should a customer choose you over your competitors?
The National Association of Sales Professionals (NASP) suggests that USP is “often communicated verbally, through a slogan or a short tagline.” It can be related to a specific benefit of your product or an experience you want to highlight.
A strong USP leans on three pillars: clear benefits to the customer, a unique message that no one else claims, and a direct hit on the customer’s pain point. It should focus on one or two key differentiators and create a meaningful story about why customers should care.
The first step to creating an effective USP is to understand how you compare with your competitors. In which areas do they do well? Where do they lag? Susan Coelius Keplinger, CEO at Force of Nature, says, “Identify what sets you apart from competitors. It could be your innovative technology, superior customer service, or unique product features.”
A compelling USP answers the following questions:
1. What do we do better than our competitors?
Identify the unique features and benefits of your products and services that your competitors don’t offer. Are you less expensive, faster, more experienced, or extremely specialized? Why do our customers recommend us to others? Ask clients for specific input if you have trouble answering this question.
2. What makes us unique?
Define the characteristics of your business that can’t be imitated by others in the industry. What experience helps you provide superior service and results? Do you have proprietary systems or equipment? What advantages do you have that can’t be duplicated or imitated?
3. What are our core values?
Think about how your business values impact your organization, its employees, and customers. What do your employees and company stand for? What is the story behind your business?
Here are some notable USPs:
- Canva: Empowering the world to design.
- Shopify: The platform commerce is built on.
- Starbucks: Expect more than a coffee.
Align Your Business with Its Value Proposition and USP
A compelling value proposition and meaningful USP are more than blurbs on your “About Us” page. They form the foundation for all marketing communications—inside and outside your organization. These statements have a direct impact on how you attract new customers, satisfy customer needs, operate internally, and maximize marketing initiatives. From human resources to social media, your value proposition and USP are the threads that tie all your efforts together. This cohesiveness establishes the trust, loyalty, and differentiation that drive real results.
