Business Brains - Stand out from the crowd and build profitability

There is a misconception on the part of some businesses that the only way to increase profits is to increase prices, or to undercut the competition in order to increase market share. But in fact the simple step of exploiting a Unique Selling Proposition (USP) can increase profitability - not just by bringing new customers but also by encouraging existing customers to buy more.

Invented in the 1940s by Rosser Reeves, a hugely successful advertising executive with the US agency Ted Bates & Company, the USP started out life as a marketing concept used to theorise and explain a pattern among successful advertising campaigns of the day. Today a USP is used to refer to a particular aspect of a business that differentiates it from its competitors.

Every business needs at least one USP. More importantly, every business has at least one USP. The hard part is identifying it, and saying ‘we offer good service’ or ‘our staff are friendly’ means absolutely nothing as (a) how are you going to prove this? And (b) many other companies are saying the same thing.

To be unique a selling proposition must be one that the competition either cannot, or does not, offer. It can be an actual fact, or a perceived difference or speciality. It may be expressed as a summary of what you do and how you do it better or differently than others. Often it can be summed up in just a few words that can turn into an advertising jingle or catch-phrase. But no matter how you express it, your USP should focus on how it benefits the customer.

Take time to look at closely at your business. Not only identify, but also justify, what it is that makes you better than your competition. Equally, consider what you would say to a customer who asks the question “Why should I purchase from your company and what is it that makes you special?”. If necessary, invest in some specialist market research with current or planned customer groups.

Once you have identified your USPs they should become the backbone of your marketing and be built directly into all your sales routes. Do not however be tempted to use cheapness as a USP. If you do you could be in danger of driving yourself out of business because if you offer rock bottom prices and the competition follow suit, you have nowhere else to go.