How to develop your business' unique selling proposition (USP)

As a business, it’s helpful to stand out, so customers notice you and pick you over your immediate competition. One way to do this is by ensuring potential customers understand your unique selling proposition, or USP.

A USP is a clear statement of what makes your business, product or service distinctive and gives customers a reason to choose you over competitors.

A strong USP focuses on a specific benefit, quality or experience that matters to your target customers and sets your business apart.

To develop a USP, start by looking closely at what you offer and where your business has an advantage. Consider what makes your business different across four key areas:

• Your business
• Your products and services
• Your relationships and collaborations
• Your marketing 

You can then use these insights to identify the distinctive value you offer customers and turn it into a clear, compelling USP.

What are business USPs?

Business USPs are based on how you run your business and the experience you provide to customers. They can come from your processes, policies, service standards, convenience or the way you deliver your products and services. Examples include:

• Outstanding customer service, such as extended support hours, personalized assistance or a dedicated point of contact.
• Extended warranties, guarantees or after-sales support that give customers greater confidence in their purchase.
• Convenient online transactions, allowing customers to order, track deliveries, make payments or manage their accounts online.
• Faster delivery or turnaround times than customers can typically expect from competitors.
• Being an authorized supplier, certified provider or specialist in a particular product, service or industry.
• Flexible options that make it easier for customers to do business with you, such as appointments outside normal business hours, home visits or customized orders.

Look beyond what you sell and consider how you do business.

Ask your customers what they value most about dealing with you, review your customer feedback and compare your processes with those of your competitors. You might discover that something you consider routine, such as same-day responses, hassle-free returns or proactive communication, is actually a meaningful reason customers choose you.

Social and environmental practices can also become important USPs when they are genuine, relevant to your customers and supported by what you actually do.

This could include using organic or recycled materials, reducing waste, sourcing locally, supporting community organizations or making your operations more energy efficient. Avoid making broad sustainability claims that you can't substantiate. Instead, identify specific actions and explain how they benefit customers and the community.

Need help identifying opportunities to differentiate your business? Dupaco members can sign up for a free rural innovator membership with the Rural Ideas Network to get access to online discussion groups, mentors and more! 

The strongest business USPs are not simply claims that you're better than your competitors. They are specific differences that you can demonstrate and that your target customers genuinely value. 

What are product, collaboration and marketing USPs?

If you've invented something completely new, you may already have a strong USP.

More commonly, however, your business will offer something similar to competitors. In that case, look for ways to make your product or service distinctive, more convenient or more valuable to your target customers. 

How many USPs should you have?

It's useful to identify several potential USPs, but trying to promote a long list can make your message confusing. Customers are more likely to remember two or three clear, meaningful differences, so focus your marketing on the USPs that matter most to your target audience.

To decide which USPs to prioritize, ask prospective and existing customers what they value most and what would make them choose your business over a competitor. You could use a short survey, customer interviews, online reviews or conversations with your sales team to gather this information.

Then compare what customers value with what your competitors offer. Choose the two or three strengths that are both important to your customers and distinctive in your market.

Test how well these messages perform in your marketing and adjust them based on customer responses.

You don't have to use the same USP in every situation. A particular product, customer segment or promotional channel may respond better to a different point of difference. Keep your core USPs consistent, but adapt how you present them to suit the audience.

How do you protect your USP?

Once you've developed a strong USP, consider how you can protect the elements that make it distinctive. If your USP involves intellectual property, such as original content, inventions, designs, branding or confidential information, the appropriate form of protection may include copyright, patents, trademarks or trade secrets.

The United States Patent and Trademark Office provides an overview of patents, trademarks and other forms of intellectual property protection. You can also consult an intellectual property attorney or other qualified professional if you're considering registering or enforcing IP rights.

Not every USP can be protected through intellectual property law. You can also make your competitive advantage harder for others to copy by creating practical barriers to entry. These could include:

• Owning a sought-after location or having a long-term lease in an area that is difficult for competitors to access.
• Establishing exclusive supply agreements, favorable contracts or strong relationships with key suppliers.
• Holding licenses, certifications or approvals that require specific qualifications or experience.
• Developing specialized processes, systems, knowledge or expertise that competitors would find difficult to replicate.
• Building strong customer loyalty and relationships that give people a reason to stay with your business.
• Developing a skilled, experienced and loyal team whose knowledge and customer relationships contribute to your competitive advantage.

For help identifying and protecting intellectual property Small Business Development Centers are great places to start. The Iowa SBDC, Illinois SBDC and Wisconsin SBDC networks might be able to provide business guidance and connect you with appropriate resources. The USPTO also provides information about intellectual property resources and support available to small businesses.

Remember that a USP isn't necessarily something you can legally prevent competitors from copying. Your goal is to identify what makes your business difficult to replicate and then protect the elements you can, while continuing to strengthen the customer relationships, expertise and processes behind your advantage.

Frequently asked questions

Developing your USP can take time, but once you have one or more that work, integrate the messaging into all your marketing so customers always remember why you're best at what you do.