USP (Unique Selling Proposition) is the key differentiator businesses develop to remain competitive and reach their target audience effectively. It helps potential customers evaluate how a company’s brand/product holds greater significance over its competitors, leading to value creation. Organizations should therefore develop compelling USPs to create the desired impact.

Today, businesses are operating in a highly competitive and dynamic market space. For instance, e-commerce brands must compete with local and global names to stay afloat. Customers are spoilt for choices, which makes the brand and product differentiation the decisive factor for companies to gain a competitive edge. Therefore, determining the unique selling proposition (USP) holds the key for companies to make their product/service stand out from their competitors. USPs help companies/entrepreneurs with strategic marketing/branding decision-making, even capturing potential customers.

What Is USP?

USP stands for Unique Selling Proposition or Unique Selling Point. It is the unique differentiation factor related to your business, the essence of which makes your product/services superior to that of your competitors. Examples of USPs include taglines, brand names, slogans, value propositions, and the like.

What Will Make You Stand Out from Your Competitors?

Your USP focuses on your core strengths. It acts as the key differentiator for your brand and revolves around what makes your brand/product so distinctively valuable for your customers. 

However, just creating a ‘unique’ USP is not enough. If you want your messaging to have an extraordinary impact, it should focus on an aspect of your brand/product that really matters to your target audience. This will compel them to choose your brand/product over those of your competitors. 

A strong USP would be a tagline like “With great power comes great responsibility.” The message indicates that people with power should use it with utmost responsibility, making them morally responsible for their actions. 

Therefore, organizations should develop powerful USPs to stay innovative and competitive, which can attract the new-age customer looking for more personalized choices, who ultimately end up buying your product.

How to Create A Compelling USP?

A compelling unique selling proposition needs to be:

Assertive But Defendable

Avoid being generic. Your product/brand’s USP should be firmly positioned against competitor brands to have the desired impact on potential customers. Thus, it creates a memorable and lasting impact that justifies what you stand for.

Focus on Creating Value for Your Target Audience

Your USP must be developed keeping in mind your target audience’s preferences and needs. If it isn’t something your audience cares about, it will not convert into sales or brand visibility.

Embody the Company’s Vision and Mission

Your unique selling proposition should be more than a slogan. It is not only about the uniqueness of the product/service offered that will appeal to your potential customers, but the fact that your message focuses on an aspect not yet tapped into by your competitors. A clear and decisive unique selling proposition that communicates your company’s unique mission effectively differentiates you from your competitors. It should be something that can be emulated across the board – from customer service and return policies to the supply chain.

Your USP should thus be able to get the customer interested in knowing about your product/service, intrigue them, and ultimately make them go for it.


USPs help customers recognize and differentiate a brand’s offerings and are especially effective in online commerce. A potential customer encountering your brand would get their answers through your brand’s unique selling proposition, which should motivate them to buy your company’s products/services. Unique selling propositions thus play a key role in a company’s marketing and branding strategies, attracting potential customers and gaining a competitive edge.


Why is USP important for businesses?

A powerful USP helps a company showcase their unique product/service’s benefits that are distinct and innovative from what their competitors offer. A USP thus helps define the business’s distinct positioning in the market space, creates brand value, and attracts potential customers. As an essential internal strategy tool, USPs help companies focus on what makes them different, helping them gain a competitive advantage.

What is the USP of a product?

A product’s USP is a unique statement that differentiates it from its competitors. Even if the product, by itself, is not unique, its USP should focus on the specific benefit and distinct value it offers to the customer. It should cash in on the aspect of the product that solves an issue affecting the customer. In this way, regardless of whether the product is more expensive than the competitors’ products, the USP compels and motivates a buyer to purchase it.

How do you explain USP?

A focused USP helps your business formulate appropriate marketing strategies and decisions, which help it stand out and become more visible than your market competitors. For instance, the popularity of e-commerce has led to an increase in online marketing campaigns. So, e-commerce companies communicating their USP clearly and concisely hold an advantage at gaining potential leads converted to their sites.

What is a good USP?

Your USP acts as your key differentiator. It helps you focus on the products/services to offer, which would help create a unique impact and make potential customers buy them from you instead of from your competitors. A good USP would add value to your selling propositions by positioning itself effectively, communicating the right message to the right audience, and providing the desired impact. A good USP would work from a customer perspective and target their core needs, which your competitors haven’t tapped into yet.

How do you use USP?

A company can apply various methods to use and communicate its USPs to its target audience. Key techniques include:

Advertising – Media advertising and brand marketing campaigns provide greater brand and product visibility to the target audience.

Social Media Platforms – Being active on social media and working with influencers effectively communicate your USP.

Content/Digital Marketing – Developing informative, compelling, and creative content is an efficient way to communicate USPs. Digital marketing helps create USPs as part of a webpage tagline or product page.

Search Engine Optimization (SEO) Marketing – SEO through search engines like Google is also an effective technique for generating brand visibility and USP communication.