What Is A Unique Selling Proposition? How To Create One (Plus 5 Examples To Inspire You)

Summary

In this Learn with Shopify video, host Michelle Bali explains the importance of a unique selling proposition (USP) for businesses to stand out in a crowded market. She outlines what a USP is, why it's crucial for differentiation, and how to create one that is assertive, defensible, and specific. Michelle provides examples of successful USPs from brands like Knix, Deathwish Coffee, and Muse, and offers a step-by-step guide to help viewers develop their own USP, emphasizing the need for it to align with customer values and business strengths.

Takeaways

• 😀 A unique selling proposition (USP) is crucial for standing out among the plethora of brands and options available to customers online.
• 🔍 A USP should succinctly communicate what makes your business or product superior to the competition, addressing the customer's immediate question of differentiation.
• 💡 Your USP needs to be assertive, defensible, and specific, focusing on the unique benefits your brand or product offers to customers.
• 🚫 Avoid generic claims like 'high quality' in your USP; instead, provide a clear, distinctive advantage that is difficult for competitors to replicate.
• 🎯 Ensure your USP aligns with what your target audience values to resonate with their needs and preferences.
• 📈 Even if your product is not unique, the way you position it through your USP can create a competitive edge in the market.
• 🌟 Showcase your USP across all customer touchpoints, including your website, product pages, and packaging, to reinforce your brand's unique value.
• 🛠️ Consider unconventional business models or practices as part of your USP to differentiate your brand from the norm.
• 📝 When crafting your USP, use a formula that clearly states what your brand offers, for whom, and how it differs from alternatives.
• 💼 Remember that a USP is not just a marketing tagline; it's a strategic positioning that should be integrated into your overall business approach.

Q & A

What is the main challenge customers face in the current market according to the script?

Customers are overwhelmed with the multitude of options available to them, making it difficult for them to differentiate between brands and products.

Why is creating a unique selling proposition (USP) crucial for businesses?

A unique selling proposition is essential as it helps businesses stand out from competitors by highlighting specific benefits that make the business or product valuable to customers.

What are the characteristics of an effective USP according to the video?

An effective USP should be assertive, defensible, and specific. It should quickly answer the question of what makes the business different from the competition.

How does the script suggest businesses find their competitive edge?

Businesses should find their competitive edge by understanding their strengths and focusing on what makes their brand or product valuable to their customers.

What is an example of a strong USP given in the script?

An example of a strong USP mentioned is 'We make a hundred percent scratch proof glasses,' which is assertive, specific, and defensible.

What is the difference between a USP and a specific offer or a header copy on a homepage?

A USP is not a temporary offer like '10% off' or a simple header copy; it is a holistic position that a business takes, which can be incorporated into the overall product and customer experience.

Can you provide an example of a brand that successfully uses a USP to stand out, as mentioned in the script?

Knix is an example where their USP is being the most comfortable intimate brand on the market, backed by innovative products like period underwear.

How does Deathwish Coffee use its USP to differentiate itself from other coffee brands?

Deathwish Coffee differentiates itself by branding itself as the world's strongest cup of coffee, catering to those who need an extra kick, and making this messaging visible everywhere.

What is the significance of a USP even if a product is truly unique, as illustrated by the Muse example?

Even if a product is unique, a USP is significant because it helps position the product in the market, in this case, Muse uses its USP to promote the idea of getting the most out of meditation with their brain-activity tracking product.

How does Taylor Stitch use its business model as a USP?

Taylor Stitch uses crowdfunding as part of its USP, framing it as a way for customers to save money and contribute to a better environment by pre-ordering their products.

What is the process suggested in the script for creating a USP for one's own business?

The process involves listing potential differentiators, researching the competition, finding gaps in the market, comparing unique angles to customer needs, and applying the USP across all aspects of the business.

Outlines

00:00

🚀 Introduction to Unique Selling Propositions (USPs)

The paragraph introduces the concept of a Unique Selling Proposition (USP) and its importance for businesses in a competitive market. It emphasizes the need for a USP to differentiate a brand and make sales. The host, Michelle Bali, welcomes viewers to 'Learn with Shopify' and encourages subscriptions for content aimed at helping start and grow online businesses. The paragraph defines a USP as the unique benefit that sets a business apart from competitors and suggests that it should be assertive, defensible, and specific. It contrasts a strong USP with a weak one, illustrating the difference through examples. The paragraph concludes with a teaser for a list of examples of effective USPs.

05:00

🌟 Examples of Effective Unique Selling Propositions

This paragraph delves into examples of businesses with powerful USPs. Knix is highlighted for its innovative intimate wear, particularly period underwear, positioning itself as the most comfortable intimate brand. Deathwish Coffee is noted for branding itself as the world's strongest coffee, appealing to those seeking an extra kick. Muse, with a unique meditation tool, uses its USP to challenge the status quo. Taylor Stitch leverages crowdfunding as part of its USP, offering cost savings and environmental benefits. Inkbox Tattoos targets an older demographic with temporary tattoos, distinguishing itself in a market typically aimed at children. The paragraph advises on how to create a USP, suggesting a process that includes identifying brand differentiators, researching competition, and aligning unique angles with audience needs.

10:03

📝 Crafting Your Own Unique Selling Proposition

The final paragraph provides guidance on how to create a unique selling proposition. It suggests starting with a list of brand differentiators and being specific. It advises researching competitors to find gaps in the market where a brand can stand out. The paragraph emphasizes the importance of aligning the USP with customer needs and pain points. It also discusses how to apply the USP across various business aspects, from brand name to return policy. A formula is provided to help articulate the USP clearly. The paragraph ends with a call to action for viewers to try Shopify's free 14-day trial and to engage with the content by subscribing, liking, and commenting.

Keywords

💡Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) is a marketing concept that refers to a distinctive feature or advantage that sets a product or service apart from its competitors. In the video, Michelle Bali emphasizes the importance of a USP for businesses to stand out in a crowded market. The USP should be assertive, defensible, and specific, and it should quickly answer the question of what makes the business different from the competition. For example, Knix's USP is that they offer the most comfortable intimate brand on the market, backed by innovative products like period underwear.

💡Branding

Branding is the process of creating a unique name and image for a product or business in the consumers' minds, primarily through marketing and advertising. In the context of the video, branding is discussed as a strategic tool that can be guided by a USP. A strong brand identity helps customers to identify and connect with a business, and the USP is a key element in defining that identity. For instance, Deathwish Coffee uses its USP of being the 'world's strongest cup of coffee' to create a strong brand image catering to those who need an extra kick.

💡Positioning

Positioning is the strategy a company uses to present its product or service in the market in relation to its competitors. It involves creating a clear, distinctive image in the minds of consumers. In the video, Michelle Bali discusses how a USP helps in positioning a business, by highlighting what makes it superior to the competition. Taylor Stitch, for example, positions itself as an environmentally friendly brand by using crowdfunding to develop new products, which is part of their USP.

💡Competitive Edge

A competitive edge refers to the attributes that enable a company to outperform its competitors. In the video, finding one's competitive edge is tied to identifying and articulating a strong USP. Muse, a company that provides brain activity information during meditation, uses its USP to establish a competitive edge, even though it has no direct competition, by positioning itself against the status quo of regular meditation.

💡Customer Value

Customer value is the perceived worth or benefit a customer assigns to a product or service. The video emphasizes that a USP should be based on what makes a brand or product valuable to customers. It should address their needs and wants. Inkbox Tattoos, for example, offers temporary tattoos that allow customers to express themselves without the commitment or cost of permanent tattoos, directly addressing a perceived value.

💡Differentiation

Differentiation is the process of distinguishing a product or service from others in the market. The video script highlights that a USP is crucial for differentiation, as it communicates the unique aspects of a business that set it apart. Michelle Bali advises creating a USP that is assertive and specific to effectively differentiate a brand from competitors.

💡Marketplace

A marketplace is an environment where buyers and sellers interact to exchange goods and services. In the video, Michelle Bali mentions that customers are 'drowning in a sea of options' in the online marketplace, which underscores the necessity of a USP to help businesses stand out and be chosen over competitors.

💡Innovation

Innovation refers to the introduction of new ideas, products, or methods. The video script uses Knix as an example of a brand that innovates by offering period underwear, which is part of their USP. Innovation is key to creating a USP that stands out and provides a unique value proposition to customers.

💡Stigma

A stigma is a negative stereotype or belief about a group or product. In the video, Michelle Bali discusses how a USP can be used to tackle stigmas and change consumer viewpoints. Inkbox Tattoos challenges the stigma associated with temporary tattoos being only for children by offering designs for all ages.

💡Storytelling

Storytelling is the art of telling stories to engage an audience. In the context of the video, storytelling is mentioned as a way to narrate a brand's USP in a positive and valuable manner. Taylor Stitch uses storytelling to frame their use of crowdfunding as a positive aspect of their business model, which is part of their USP.

💡Niche

A niche is a specialized segment of a market. In the video, Michelle Bali encourages businesses to find a niche in the market that is less touched by competition when creating a USP. This allows a business to dominate a specific segment and establish a strong presence within that area.

Highlights

Customers are overwhelmed with options, making it crucial for brands to differentiate themselves.

A unique selling proposition (USP) is key to guiding branding and marketing strategies effectively.

A USP should be assertive, defensible, and specific to stand out against competitors.

The USP should answer the question of what makes a brand different from the competition.

A compelling USP should be based on the brand's strengths and customer values.

The USP is not just a slogan but a holistic position that should be reflected in all customer touchpoints.

Even if a product is not unique, the message or angle can be, making the USP powerful.

Examples of strong USPs include Knix's focus on comfort and Deathwish Coffee's strength claim.

Muse uses its USP to overcome the status quo as a competitor despite having a unique product.

Taylor Stitch turns an unconventional business model into a USP by incorporating crowdfunding.

Inkbox tattoos challenges the stigma of temporary tattoos with a unique approach.

Creating a USP involves listing potential differentiators, researching competition, and aligning with audience needs.

Applying the USP across the business, from brand name to return policy, reinforces the brand's position.

A USP formula is provided to help articulate the brand's unique value proposition.

The video concludes with an encouragement to find a niche in the market and create a strong USP.

A call to action for viewers to subscribe and engage with the content is made.

Transcripts

There are so many brands out there online, and customers right now

are overwhelmed with options.

So how do you differentiate yourself?

Well, knowing the best way to position your business

and your products can be the difference between blending

in, and making that sale.

And this is why it's so important for you to create

a unique selling proposition that can help guide your

branding and marketing choices.

So keep watching, I'm about to tell you how to come up

with a truly compelling unique selling proposition, and that's

going to help you stand out against your competitors.

Welcome back.

And if you're new, welcome to Learn with Shopify.

My name is Michelle Bali and I am your host.

So on this channel, we are constantly creating content

that's going to help you start and grow your online business.

So if you're a small business owner or maybe you're looking

to become one, then you're going to want to make sure that you

are subscribed to this channel.

But without further ado, let's just hop right into it.

So what's a unique selling proposition?

A unique selling proposition is the one thing that makes

your businesses better than the competition.

It's basically that specific benefit that makes your

business stand out while the others are blending in.

So how do you find your competitive edge and how do

you make customers choose you?

Well, the first thing that we have to understand, is that in

the age of the internet, customers are drowning in a sea of options.

So they really just want to quickly understand what makes

one product better than another.

So as brand owners, we need to respond to that

by coming up with our own unique selling propositions.

And that's actually USP for short, just for your reference.

So a USP should quickly answer a potential customer's

most immediate question.

And that is what makes you different from the competition.

So how do we answer this question?

Well, your USP is going to play to your strengths, and it

should be based on what makes your brand or your product

valuable to your customers.

A compelling USP would be assertive, defensible and specific.

'We make a hundred percent scratch poof glasses' that is definitely

assertive, specific and defensible.

'We sell high quality products' not so much.

So hopefully you can see the difference.

Like I said before, it should also be focused on

what your customers value.

The unique in unique selling proposition, won't really be

counting for much if your target audience doesn't really care

about your proposition, right?

So you got to make sure that your proposition is targeted.

Your USP needs to be more than just a slogan.

So in essence, you should be able to talk the talk

and walk the walk, right?

It should be that meeting point between what your customers want,

what your customers need, and then what your business does well.

All right, here's a secret.

What you sell actually doesn't have to be unique, but the

message that you choose to focus on, that should be unique.

So in other words, you could be selling the same product as your

competition, but if you have a different angle, then your unique

selling proposition is what's doing all that heavy lifting.

Here's what a unique selling proposition is not.

So it's not a specific offer, like 10% off or 24/7 customer service.

These definitely are convincing and they're definitely effective,

but they're not unique, and they're not positions that are

easy to defend because any of your competitors can just copy them.

A USP is also not just the header copy on your homepage.

It's a position that your business takes as a whole, that can be

incorporated into the products and the overall experience

that you provide, and basically any touch point that your

customer has with your business.

It's more holistic.

All right, super quick break here.

I want to ask you something.

Is your website content costing you sales?

Learn how to improve your website copy with our free curated

list of high impact articles.

So I'll leave a link for you guys in the description box below to get

a free reading list on copywriting tactics for entrepreneurs.

All right back to it.

I feel like the best way to understand what makes a powerful

USP is by looking at some examples.

So I've actually created a list of five examples of unique

selling propositions that are just getting it right.

So let's take a look at these.

All right.

So let's take a look at Knix.

Knix's Unique selling proposition is that they

are the most comfortable intimate brand on the market.

And they're actually able to back that USP up by selling innovative

products, like period underwear.

So these intimates replace pads with leak-proof protection and

they make your monthly cycle more comfortable and more convenient.

So they have other products like wireless bras, for

example, and that just further enforces their claims.

So for you and your brand, you can think about how your

products can innovate to be able to make bold claims like Knix.

Deathwish Coffee.

So a lot of coffee brands out there are claiming to have either

the smoothest or the richest cup of coffee, but Deathwish is

doing something different, they chose to brand themselves as the

world's strongest cup of coffee.

And they're basically just catering to those people that

just need that extra kick.

Deathwish coffee is a great example of developing a product based on

a unique selling proposition that other brands aren't already doing.

And they truly make this messaging visible everywhere.

They have it on their site, they have it on their packaging

and they even have full refunds for anyone who says that their

coffee isn't bold enough.

So for you and your brand, you can look at what they're doing

and really just emulate that.

You can consider including your USP at multiple touch points, just

like Deathwish Coffee is doing.

Muse.

Muse is a perfect example of why you would still need a USP, even

if your products are truly unique.

So the product that they make provides information about

your brain's activity as you meditate, and as it stands, they

actually have no competition.

There is no comparable consumer product out there, but actually

in this case, their biggest competitor would be the status quo.

That would just be, you know, regular meditation without a tool.

So naturally their USP is around using their product to

get the most out of meditation.

And they definitely build a strong case for this all over their

product pages, on their about us page and just all over their site.

So what that means for you is if your business and your

product offering is truly unique, it is definitely still

important to have your USP.

Taylor Stitch.

Okay so Taylor Stitch is an interesting one.

They are a clothing company that uses crowdfunding to

develop their new products.

Some consumers actually frown upon established brands that

use crowdfunding, but that definitely isn't the case here,

just because of the way that they make it a part of their USP.

They immediately let customers know that with crowdfunding, they're

saving 20% off and by pre-ordering, they're actually making it

better for the environment.

So, taylor Stitch is just a great example of successfully

turning an unconventional business model into a competitive edge.

So for you, you should be narrating your story in a way

that is positive and valuable.

Now, whether that applies to your supply chain or other areas of

your business, your USP should be supported by positive storytelling.

Inkbox tattoos.

Many temporary tattoos are really intended for kids and

they have childish designs, but Inkbox definitely takes a

bit of a different approach.

They offer designs for people of all ages.

Their unique selling proposition is that customers can express

themselves without the commitment and without the

high cost of permanent tattoos.

So I love this because this really breaks through that stigma.

So as it applies to your business, If you're selling a product that

has certain connotations, then you can use your unique selling

proposition to tackle stigmas and change consumer viewpoints.

Now that we've looked at some examples of strong USP's from

other businesses, you might be wondering how you can

go about creating your own.

Every USP is going to be unique, but that doesn't mean that there

isn't a process that you can't use to put yourself on the right track.

So here's how you can write yours.

First, make a list of all the potential differentiators

of your brand and what it is that you're selling.

And also get specific.

If you want to make break-out products or memorable

marketing messages, you're going to need to be specific.

This is because breakout ideas solve the exact right problem and

communicate that benefit to their customers in their own words.

Next research, the competition.

Who are your competitors and what are their USP's?

And then look for gaps where you could potentially introduce

your brand differently.

Keep in mind that products in the same category can be positioned

in wildly different ways.

So even two identical products can be positioned very differently.

Once you have some angles in mind, compare your most unique angles

against your audience's needs.

Maybe your customer's needs aren't being met.

And if not, how can you meet them?

Do your customers have any pain points that maybe you can solve?

After you settled on your USP you're going to want to

think about ways that you can apply it across your business.

From your brand name, to your return policy, you can really

reinforce your USP and just weave it right into your business.

And it might also help to express it in a statement so

that you can just get it down on paper and understand it fully.

So use this formula: [Your brand] offers [product or

service] for [target market] to [value proposition].

Unlike [the alternative] we [key differentiator].

So that's a bit abstract, so let's just try one for fun.

Go fetch offers the lightest Frisbees ever made for

over-energetic dogs who want to go further, faster.

This won't be exactly what you advertise on your website.

You know, you're going to want to finesse that copy,

but it should definitely help you clarify your USP.

Unique selling propositions, defining your competitive edge.

A USP isn't just a persuasive line of copy on your homepage.

It really is how you position your products or even your

entire brand to the world.

So don't forget, your products don't have to be completely

unique in order to have a strong, unique selling proposition.

So don't let that daunt you.

Instead, what you can do is look for a spot in the

market, that's more or less untouched by the competition.

Coming up with your unique selling proposition is it

definitely an exciting time.

At this stage, you get to think about how you can dominate a

quarter of your niche and really flex your creative muscles.

So that about covers it for today's video.

Today you've just learned how to create a unique selling

proposition that will take your ideas to the next level.

If you're looking to start and grow your online business, Shopify is

offering a free 14 day trial and there's no credit card required.

All you have to do is click the link in the description box to get

your store set up in minutes and bring your beautiful brand to life.

If you haven't already subscribed, make sure that

you are doing so also if you found this video helpful, make

sure that you're giving it a thumbs up so that I know what

kind of content you guys like.

Also, if there is some sort of a topic that you want me to cover in

the next one, make sure that you're leaving it in the comment section

so that I can check that out.

Other than that, hopefully you found this video helpful.

Thank you so much for watching.

I'm your host Michelle Bali, and I will see you in the next one.