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No matter what you sell, there are probably an abundance of alternate options available. That means every business has competition, and every customer has to decide which products have the most value.
To set your business apart from your competitors, it’s important to have a unique selling proposition to offer to customers.
A unique selling proposition helps your business and the products you sell or services you provide stand out in a crowded market. This guide will help you understand what a unique selling proposition is and why it’s important for your business, with some examples and a template to start your own.
What is a unique selling proposition?
A unique selling proposition (USP) is a clear statement of the key benefit your product provides. It’s similar to a brand value proposition or a unique value proposition (UVP) as both try to differentiate from competitors, but each one has a different focus.
Whereas a UVP will focus on the overall value someone gets from your business, a USP is specific to one key feature or differentiator of your product. Most USPs are one or two short sentences.
To create a strong USP, you’ll want to understand your customers’ priorities and how your vision uniquely serves them. For example, if you’re a flower business, a USP could be that your flowers are seasonal, fresh, and locally sourced, and no arrangement is the exact same. For the customer, the UVP is that they get unique, long-lasting arrangements for every occasion.
Unlike a slogan or tagline, which is memorable and gestures toward what the brand’s about more broadly, a USP is specific and product-focused.
Why is a USP important for your business?
A USP clearly states to your customers what your product offers and why they should choose you over a competitor. For you, as the business owner, it’s a great way to understand the value of your offering in the immediate term. For customers, it answers the question of, “Why should I buy this product now?”
It’s important because it can help you more easily communicate to customers about your products. Good USPs can influence how you design and brand your business, how you market your products, and how sales unfold. Your USP will inform all of these areas, building familiarity with your potential customers, encouraging engagement and customer loyalty.
How to create your own USP
Now that you understand what a USP is and why it’s important for your business, here’s how to create your own.
Understand what makes your business unique. Focus on what makes your products or services stand out from competitors.
Research and understand your competition. You won’t know what differentiates your product or service until you understand your competition. Conduct thorough competitor research to find key differences.
Identify customer needs and pain points. Understand what your customers need from a product or service. This will help you better clarify why your offering is a unique solution for them.
Test your USP on peers or friends. Gather feedback on your USP and whether you’re hitting all of the key elements before bringing it to market.
Here’s a USP template you can use to build off of to create your own:
[Your business name] offers [specific good or service] for [target customer or market] to [value proposition]. [Key differentiator] [alternative business].
So using a fictional business as an example: Sarah’s Flora offers locally sourced flower arrangements to busy folks on the go who want to add beauty to their homes. With flowers from local farmers, no two arrangements are ever the same at Sarah’s Flora—not like third-party floral companies.
You don’t typically share your full USP with customers, especially if yours names specific competitors. But it will help to shape how you speak to customers about your product or offering.
5 USP examples
The best way to understand a USP is to see examples of them. The businesses below are all fictional, but we’ve broken down the key elements needed for each to create a compelling USP.
1. Boom, a t-shirt brand
Boom is an online t-shirt brand that is reasonably priced but doesn’t cut costs on quality, offering Egyptian cotton basics in a variety of colors and styles.
Customer: Style conscious buyers on a budget
Solution: Affordable basic t-shirts meant to last
Offering: Quality materials in a variety of colors and styles
Competitor: Fast fashion brands
USP: Boom offers Egyptian cotton t-shirts to the fashion savvy at an accessible price point. No fast fashion, just soft, quality material that’s built to last.
2. John Smith Portraits, photographer
John Smith Portraits is a solo photography business offering portraits of clients including professional, family, or event photos, all in-studio. John Smith has packages for his clients with a wide-range of styles, total images, and turnaround times.
Customer: Professionals looking for headshots or families looking for portraits
Solution: Fast turnaround time on portraits
Offering: Unique portraits on digital or film, a selection of photography packages to choose from, and affordable tiers
Competitor: Other photographers without packages or photography businesses that offer standard headshots
USP: John Smith Portraits offers an affordable selection of packages and unique pictures to professionals and families. Packages are designed to fit a range of needs and price points, with more included than others’ standard digital packages.
3. Rosy General, online handmade goods webstore
Rosy General is an online, community-centric goods store that sells local art, collectibles, and handmade products like candles or jewelry to customers who want to support their local artisans. Some of Rosy General’s profits go toward community initiatives and causes.
Customer: Buyers interested in local, handmade goods
Solution: One-of-a-kind products, nothing mass distributed
Offering: Support to local artisans and community causes
Competitor: Big box and department stores
USP: Rosy General offers locally sourced and handcrafted goods from jewellery and art to beauty products, for buyers interested in supporting their community. Unlike big-box stores, our one-of-a-kind products give back to the area directly.
4. Bristle & Quill, salon
Bristle & Quill is a salon featuring stylists who specialize in unique hair coloring and playful techniques. Meant for customers who have disposable income and an adventurous mindset.
Customer: Adventurous and experimental customers with disposable income, usually women or anyone who regularly spends on their hair
Solution: Unique hair coloring and techniques
Offering: Expert stylists well-practiced in advanced coloring and cutting techniques
Competitor: Other salons in the area
USP: Bristle & Quill offers unique hair styling solutions for clients with adventurous ideas. Expert stylists will walk you through the best styles, colors, and cuts to try, unlike other salons in the area that offer simple, straightforward cuts and colors.
5. Jane Smith Career Coaching, online coach
Jane Smith is a certified coach focused on career development, including where to get started on a career journey or how to switch to an entirely different one. Jane’s rates differ depending on where you’re at in your journey, including a sliding scale for those starting out with a career coach for the first time. Unlike Jane’s competitors, she offers aftercare steps and service to ensure clients are on the right track in their career path.
Customer: People looking to switch careers or understand what career path they should take
Solution: Affordable career coaching services available digitally to ensure maximum reach
Offering: Unique, white-glove service and aftercare steps to make sure clients are making the most of their designed career path
Competitor: Career coaches offering one-size-fits-all career consultation and coaching
USP: Jane Smith Career Coaching offers affordable career coaching to anyone, no matter if they are starting out or ready for something new. With a unique approach to maintenance and aftercare after consultation, Jane Smith ensures her clients remain on the path to success, unlike other career coaches with a one-size-fits-all approach.
Where to use your USP
Your USP can be repurposed to use in a number of places. Primarily, you can use it internally as a reminder of what your business does and who you’re serving.
Externally, there are a number of spots where you can easily and concisely include a version of your USP so customers can immediately understand the unique qualities of your products or services.
You can use your USP in:
Marketing: You’ll want to include some version of your USP on landing pages on your website (e.g., About section), social media, or ads.
Sales: Email marketing, newsletters, or sales call materials are great spots to incorporate your USP.
Branding: Brand visuals and copy, like taglines, will be informed by your USP. What color feels in sync with local floral bouquets? How would you tell the story of a one-of-a-kind handmade goods business in one sentence?
Returning to the floral business example, Sarah’s Flora might turn its USP into a tagline or copy that appears across their website and sales materials, like, “Always local, always one-of-a-kind” or “Local arrangements as unique as you are”.
Tips for creating your USP
Condensing your top product features into a couple of sentences will ultimately help you clarify to your customers exactly what you offer and why they should choose you. Try thinking through these tips if you’re still not sure where to start.
Focus on specific solutions. The more specific you are about what your product does, the better. Keep solutions top of mind. If you’re selling books online, what is the key differentiator? Maybe you specialize in local authors or out of print titles that are hard to get.
Don’t fabricate. In other words, don’t exaggerate your offerings. Try not to say you’re the best at something. Instead, lean into what makes your product unique, like your eco-friendly materials or unique design style.
Be customer-focused. Keep your customers' needs top of mind when figuring out your USP. For example, if you run a coaching business, some of your customers may find it hard to get started with a coach because of cost. Highlight that you offer a sliding pay scale to cast a wider net for potential customers.
Once you have a USP you’re happy with, evaluate it carefully for a few common missteps that can weaken its effectiveness.
Being overly generic: Avoid benefits that are vague or could apply to any business, like “quality products” or “great customer service”.
Making claims you can’t support: At the same time, don’t overstate features or promise something you can’t consistently deliver. Missing the mark will lead to unhappy customers.
Not focusing on benefits: While product and service features are the subject of your USP, make sure you’re highlighting something that clearly benefits your customer, like “100% cotton for durability and comfort”.
Being too wordy: Your internal USP can be longer, but when you speak to customers, make sure you keep it concise—ideally 10 words or so.