Starbucks is not only good at customer loyalty, but it also excels in Unique Selling Proposition.
The real success behind Starbucks is going beyond coffee. It’s getting people to connect various positive things in daily life with “Starbucks” coffee. For some people, it’s a good chat and tasty coffee with friends; for others, it means the right way to start a busy workday. The USP “Expect more than coffee” conveys the company mission, which is “connection.” |
In a marketplace overflowing with options, making your product stand out requires a multi-pronged approach. Start by identifying your unique value proposition: what sets your product apart from the competition?
UNIQUE SELLING POINT
A unique selling point (USP) defines in a short sentence or two that makes your business better than your competitors and why customers should buy from you—what they care about the most.
A USP could be:
Most importantly, your USP puts customer needs front and center.
How to define your unique selling proposition
To create a USP, start with these four qualities that strong selling propositions should have.
1. Focus on your customers
Customer experience is at the heart of a good unique selling proposition. Today’s customers face a multitude of choices and tend to make decisions very quickly. To win them over, you must understand their needs and challenges, and offer them solutions.
Ask yourself these questions:
My business makes these products or offers these services that are unique to us. We are targeting these customers because we provide them with this specific value.
2. Root it in your business values
Your company was created for a reason. What are your values and how do you stand behind them?
A USP is more than just a slick slogan or catchphrase to throw out to customers. It must be grounded in something deep and meaningful.
Go back to your mission and vision statements and input your customer needs into them. How will your USP communicate that you stand for something unique that meets demand?
You and your team can go back to your USP each time you create something new or plan the next steps in your growth. Test your plan against your business values and your USP. This keeps you customer-focused and ensures consistency of messaging.
3. Highlight your strengths
Identifying your strengths requires a bit of brainstorming. You’ll have to be honest about your weak points to identify your brand’s strengths. Ask the question, what do we do best?
“Unique” and “high value” are blanket terms that don’t speak to your customer needs. When considering the strengths of your products and services, keep your customers’ needs in mind. How do your best attributes solve a unique challenge for your customers?
Use precise language that captures your brand’s strengths, but not too narrow that it limits eventual product growth and business expansion. All future offerings ideally fall under a single USP umbrella.
Recall your four P’s: product, place, price and promotion. Recently, some have also added a fifth P: people. Focus on your strengths to determine the distinctive characteristics of your business values, products and services.
4. Position yourself in contrast to competitors
Your USP must clearly articulate to customers how you will better meet their needs compared to your competitors.
Once you know your strengths and how they provide solutions that customers need or want, examine your competition. Identify your competitor’s strengths and weaknesses, and directly contrast them to what you’re selling. This will help you pinpoint how you stand out to fill a niche demand. Your differentiators may be nuanced.
Top 4 pitfalls to avoid when defining your USP
1. Forgetting to put customer needs at the center of your selling proposition
Your prospects and customers are your reason for being. Ensure what you promise matches customer experience. Get regular feedback from customers to ensure that your USP continues to speak to them, even as their needs change.
2. Broadcasting an inconsistent message
As more business is conducted online, harmonizing your message and customer experience across all channels is important. In today’s world, digital strategy and business strategy are one. The USP ties them together.
3. Creating a USP with no depth
If your USP isn’t rooted in the values of your company, it’s easy to get off-track. Customers will test your selling proposition regularly. Your employees, the service you offer, and what you promise will stand up to these tests if they’re deeply grounded in your business values.
4. Partnering with companies or suppliers that don’t share your values
Customers can access information about you at the click of a button. If you position your business as a green company, but you partner with a firm that has a reputation as a polluter, your customer will find out. If you stand for social justice, but associate with manufacturers that use child labour, your customers will distrust your brand and look elsewhere.
UNIQUE SELLING POINT
A unique selling point (USP) defines in a short sentence or two that makes your business better than your competitors and why customers should buy from you—what they care about the most.
A USP could be:
- Lowest price
- Highest quality
- Fastest delivery
- A unique location
- The most innovative products or services
- The most long-term aftersales services
- Any other factor that influences customers' buying behaviour
Most importantly, your USP puts customer needs front and center.
How to define your unique selling proposition
To create a USP, start with these four qualities that strong selling propositions should have.
1. Focus on your customers
Customer experience is at the heart of a good unique selling proposition. Today’s customers face a multitude of choices and tend to make decisions very quickly. To win them over, you must understand their needs and challenges, and offer them solutions.
Ask yourself these questions:
- How do your customers shop?
- How do they use your product or service?
- How does your brand align with your customers’ day-to-day experiences?
- What kind of interactions will they have with you in the virtual world or offline?
My business makes these products or offers these services that are unique to us. We are targeting these customers because we provide them with this specific value.
2. Root it in your business values
Your company was created for a reason. What are your values and how do you stand behind them?
A USP is more than just a slick slogan or catchphrase to throw out to customers. It must be grounded in something deep and meaningful.
Go back to your mission and vision statements and input your customer needs into them. How will your USP communicate that you stand for something unique that meets demand?
You and your team can go back to your USP each time you create something new or plan the next steps in your growth. Test your plan against your business values and your USP. This keeps you customer-focused and ensures consistency of messaging.
3. Highlight your strengths
Identifying your strengths requires a bit of brainstorming. You’ll have to be honest about your weak points to identify your brand’s strengths. Ask the question, what do we do best?
“Unique” and “high value” are blanket terms that don’t speak to your customer needs. When considering the strengths of your products and services, keep your customers’ needs in mind. How do your best attributes solve a unique challenge for your customers?
Use precise language that captures your brand’s strengths, but not too narrow that it limits eventual product growth and business expansion. All future offerings ideally fall under a single USP umbrella.
Recall your four P’s: product, place, price and promotion. Recently, some have also added a fifth P: people. Focus on your strengths to determine the distinctive characteristics of your business values, products and services.
4. Position yourself in contrast to competitors
Your USP must clearly articulate to customers how you will better meet their needs compared to your competitors.
Once you know your strengths and how they provide solutions that customers need or want, examine your competition. Identify your competitor’s strengths and weaknesses, and directly contrast them to what you’re selling. This will help you pinpoint how you stand out to fill a niche demand. Your differentiators may be nuanced.
- Are you giving customers a better online experience than your competitors?
- Are you making it easier for customers to access and pay for your products or services?
- Do you have stronger values, processes or knowledge than your competitors?
- Do you offer 24-hour service or free delivery?
Top 4 pitfalls to avoid when defining your USP
1. Forgetting to put customer needs at the center of your selling proposition
Your prospects and customers are your reason for being. Ensure what you promise matches customer experience. Get regular feedback from customers to ensure that your USP continues to speak to them, even as their needs change.
2. Broadcasting an inconsistent message
As more business is conducted online, harmonizing your message and customer experience across all channels is important. In today’s world, digital strategy and business strategy are one. The USP ties them together.
3. Creating a USP with no depth
If your USP isn’t rooted in the values of your company, it’s easy to get off-track. Customers will test your selling proposition regularly. Your employees, the service you offer, and what you promise will stand up to these tests if they’re deeply grounded in your business values.
4. Partnering with companies or suppliers that don’t share your values
Customers can access information about you at the click of a button. If you position your business as a green company, but you partner with a firm that has a reputation as a polluter, your customer will find out. If you stand for social justice, but associate with manufacturers that use child labour, your customers will distrust your brand and look elsewhere.
TASK:
You will be creating your own entrepreneurial venture to practice the methods presented in class.
To begin, you will be coming up with a business idea.
The first step is to identify what you are passionate about. This may be a hobby, a cause, a talent, or something else completely.
1. Create a list of things you feel passionate about or are drawn to. This may include things you like to do in your free time, problems you have identified in your community, gaps in a market you are drawn to, etc.
2. Once your list has exhausted all of your ideas, consider how each will translate to a business. Think of things like feasibility (how likely is it that this idea will work), market demand and competition. Conduct research to support your ideas and assumptions.
3. Choose a business idea to go with based on this list and any research you have done surrounding your idea. Give your business a working title for now.
4. Identify your business' Unique Selling Points.
Use the information in the writing above to ensure you are making informed decisions for your company's goals.
Your USP should be 1-3 sentences and can include bullets if you'd like.
To begin, you will be coming up with a business idea.
The first step is to identify what you are passionate about. This may be a hobby, a cause, a talent, or something else completely.
1. Create a list of things you feel passionate about or are drawn to. This may include things you like to do in your free time, problems you have identified in your community, gaps in a market you are drawn to, etc.
2. Once your list has exhausted all of your ideas, consider how each will translate to a business. Think of things like feasibility (how likely is it that this idea will work), market demand and competition. Conduct research to support your ideas and assumptions.
3. Choose a business idea to go with based on this list and any research you have done surrounding your idea. Give your business a working title for now.
4. Identify your business' Unique Selling Points.
Use the information in the writing above to ensure you are making informed decisions for your company's goals.
Your USP should be 1-3 sentences and can include bullets if you'd like.