Importance of USP in Marketing and Business

Importance of USP in Marketing and Business


  • What is the importance of USP?
  • Importance of USP in marketing
  • Importance of USP in Marketing and Business

There are numerous businesses all over the globe competing with each other in a variety of niches.

We can generally accept that if there is a demand for a certain product or a service then there will be many sellers who will provide it, but the buyer’s choice has a different tendency.

In most cases, the buyer has already made up one’s mind to buy the product or service from a particular provider for a particular reason and this makes all the difference.

The reason behind the buyer’s choice to buy the product or service from a particular vendor is the vendor’s USP and sets it aside from all its competitors. Therefore it is important to have an USP for your marketing and business endeavors.

Unique Selling Point Definition

A unique selling proposition (USP) by definition is the factor that differentiates a business from its competitors. It defines why the business is unique and better than all the others out there.

It brings out the individuality and value of the business and makes it stand out from the rest in the market.

A unique selling proposition, also known as a unique selling point, aims to answer the question “Why is your product better than others in the market?”

A USP can be a short statement informing the uniqueness of your company and why only buying from you gives the customers an additional value.

It is worth noting that all companies try to keep their USP short and precise to make it effective and memorable for customers, for example, Nike: Just do it!

What Is the Importance of USP?

usp written on a piece of paper

A USP defines your company and its purpose. The importance of USP lies in the fact that it is the very identity of the business. In the current world, customers are fickle-minded. They will pick a product and most likely chuck it away if it does not stay up to the company’s USP.

However, if the product or service satisfies the customer and goes in sync with the company USP, the likelihood of the business retaining the customer’s loyalty increases tremendously.  In other words, USP informs its customers why they should pick and keep the company’s products and services.

Benefits of Unique Selling Point

A company without a USP is basically going nowhere. USP is one of the vital steps that grow your business and comes with many benefits.

It is the foundation around which all your marketing and sales initiatives are planned. It also ranks your brand in the market.

There are many benefits of unique selling point irrespective of the type of business. A well-articulated USP can eventually become a colloquial trendsetter like that of Domino’s Pizza – “You get fresh, hot pizza delivered to your door in 30 minutes or less, or it’s free.”.

The unique selling proposition of Domino’s Pizza assures the customer that they will get their fresh, hot pizza delivered within 30 minutes or else it’s free.

Many a hungry fellow looking forward to the scrumptious delight hopes it reaches free, but it rarely if not ever does.

But hasn’t the 30 minutes deadline become a worldwide phenomenon? Aren’t there numerous eateries around the world that propose a similar or identical offer?

It wouldn’t be a step too far to suggest that asking someone how the 30 minutes deadline came into practice received a reply that it was probably Domino’s Pizza.

Thus the company’s USP has wittingly or unwittingly become synonymous as well as the very image of an absolute promise of a tasty meal reaching your mouth within half an hour.

Thus one of the benefits of USP is that it can have a long-lasting and a global effect on your business. It also has other benefits including setting the business apart from its competitors, retaining customers, and providing a direction to the business.

1. Setting the Business Apart from Its Competitors

The USP of a company depicts how the brand is different from all the competitors and also gives the customer the reason to make the purchase from you.

If there is no USP then the choice between different products or services becomes irrelevant and chances are the least priced product or service is most likely to get sold.

2. Customer Retention or Customer Loyalty

Gaining customer’s attention is difficult enough but achieving customer loyalty is the Holy Grail. With a large number of products, services, and providers vying to capture a customer, the latter has only become smarter with one’s choices.

If the business fails to deliver the value promised in its USP, the chances the customer will come for a second try is next to nil.

However, should you be able to deliver the value you promise in your USP, the possibility of the customer becoming a repeat customer increases drastically.

Besides, every time you deliver on the USP, it only reinforces the customer’s positive experience and loyalty to the brand and also encourages positive word of mouth and brand advocacy.

3. Providing a Direction to The Business

A potent USP builds upon strong market research and upon this foundation lies the direction in which the marketing and sales initiatives the brand will go.

The USP will help the sales and marketing teams to promote the brand’s value and also spread a consistent message through all marketing media.

Unique Selling Point in Business

Every business must have a unique selling point period. A business without a USP will simply end up in listless waters.

Meanwhile, a USP-equipped business knows what it wants to achieve and in what direction it must proceed to achieve success.

If you have a business then there are many others who are competing with you. If all of the businesses have a USP then all are trying to prove to a prospective customer why they are better than their competition.

The uniqueness a USP generates also provides much-required competition in the market. If there is no competition in the market, then most probably there isn’t a lot of profit in it either.

1. Connect Emotionally

A good USP generally retains itself in the minds of customers and whenever they are in the market, they will first think of you.

If the message is clearly and precisely articulated in such a way that doing business with you provides the best benefits to the customers, then you have given them an emotional cause to do and keep doing business with you.

Creating an emotional connection with the customer is vital because, without it, there is no loyalty. The aim is to build relationships with your clients which encourages them to remain loyal to your brand.

2. Changing Marketing Trends

Gone are the days when stick images, impersonal calls, or generic campaigns were held to convince a customer. In the 21st century, marketing has gone personal and is likely to stay so for over a period of time.

Successful marketing can now be achieved mostly by providing personalized high-value content from the introduction to the final sale.

Every customer now wants to be treated as an individual and not like the general public and this is where the USP will give direction to provide a personalized experience for the customer and also set you apart from the competition.

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Importance of USP in Marketing

Imortance of USP. Why it matters

The very value of a brand is directly related to its USP and the latter takes birth following extensive market research.

To differentiate oneself from the competition, one must know what value they provide and what is offered by their competitors.

Before setting up the unique Selling Proposition for the brand, one will have to do thorough market research.  There are two factors, internal and external, that will bring out the USP for the brand

Internal Factor
1. Value You Provide

Thinking from the POV of the customer, you need to decide how your product or service helps the customer in their need.

The benefits the customer derives from purchasing the product from you will automatically establish the value you provide.

2. How You Are Different

What is it that makes you different from your competitors? Is there something that you provide that your customers cannot get from somewhere else?

Your product may have more features, or be cheaper, or be made of sustainable materials, or be more reliable.

Somewhere in between these options lies your uniqueness. It could be anything from branding to personalized customer service.

1. One up Your Competitors

Know thy enemy, or in this case, your competition. To set a unique business you should first know your competitor’s USPs.

Look for a gap that they are failing to meet. See if they provide the value of their USP claims. If you can meet where they can’t reach you, your company becomes the best attraction along the street.

2. Customer’s Pain Points

Products and services are solutions to problems. Customers don’t simply buy things for no reason. There is a problem and they are seeking a solution.

Understand the problem. Find its pain points. Efficiently solve the problem through your product or service and you have naturally created an emotional or a sub-conscious connection with the customer. Thus importance of USP in marketing cannot be ignored and are essentially interdependent.

Now develop the USP and highlight the pain point. Show how you understand the customer’s needs and then offer them your product or service as a solid solution to their predicament.

Help one and they will help three more. Soon the little sailboat may metamorphosize into a full-blown ship.


In conclusion, every business is defined by its unique selling point. USP is vital for a company’s business growth as well as its marketing needs.

Noting that the benefits of unique selling point are immense, it is safe to say that the very strategy for the business to grow is based on marketing which in turn is also based on USP.

Therefore it is well-advised not to leave aside the Importance of USP in marketing.

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