What is the usp

What is the usp

Unique Selling Point / Proposition (USP): definition and examples

Last updated: 5 May, 2021

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What is a unique selling proposition?

A unique selling point (USP), also known as a unique selling proposition, is a unique property of a product, service or branded item, which is associated with an advantage over the competition. A unique selling point can be a product’s or service’s features, special technical characteristics, innovation, unique design etc. Unique selling points are typically used as the basis of marketing campaigns.

The creation of a unique selling proposition is the main challenge in product development and marketing, because without such a feature the customer cannot associate a product with a unique identity, but will only aim to purchase it at the best price. For companies that strive for price leadership, the unique selling point is to become the cheapest provider. Such customer benefits must also be clearly communicated.

It’s not uncommon for a unique selling point to be patented (if possible) to protect it against competitors for the duration of the patent.

The unique selling point is of central importance for the establishment of a customer’s values. Companies that have no or weak unique selling point are under higher pressure and have to work with more customers per day, use stronger inductive reasoning, big discounts and bonuses in order to survive against the competition.

Origin of the term

The term unique selling proposition (USP), was introduced into marketing theory and practice in 1940 by Rosser Reeves as a unique “sales promise” in the context of product and service advertising. According to him, this unique selling promise should distinguish the benefit of the marketed product from the products of the competitors. This alleged or actual benefit usually refers to a specific property that other products do not have or do not claim to have. The target group addressed in this way should thereby form preferences for the advertised product and ultimately purchase it.

As part of his work for the advertising agency Ted Bates & Co, New York, Reeves repeatedly tried to find out and implement this unique selling point in the products he advertised in a target group-oriented manner. The dominant idea was to clearly work out and present the reason why a consumer should buy the advertised product.

During the US presidential election campaign in 1952, Rosser Reeves also implemented the unique selling point in campaign advertising. The Republican Party had hired him to promote Dwight D. Eisenhower. What followed was an upheaval in election campaigns, since he – successfully – marketed the candidate like soap.

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In 1961, Reeves provided the theory for the practice of the unique selling point that he practiced. He conclusively demanded that advertising should clearly convey why the consumer should buy the advertised product (and no other). It is essential that the company must also deliver what the advertising promises. Otherwise, success will not last.

Unique selling point/proposition examples

The following are examples of the most famous unique selling propositions presented through what is generally viewed as a slogan that is intensified with a differentiating benefit of the product or service. Typically, the uniqueness is achieved with a unique method, component, or system that provides the benefit specified.

Head & Shoulders: “Clinically proven to reduce dandruff.” (1961)

After 10 years of research, Pyrithione Zinc was found to be a component that eradicated dandruff where other products were not effective. Adding the word “Shoulders” to the product name also symbolized that the product reduced the white marks on dark clothes caused by dandruff flakes falling from the hair.

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M&M’s: “Melts in your mouth, not in your hand.” (1954)

As a unique selling point, M&Ms used a patented solid sugar crust that holds chocolate from melting in one’s hands. Thus the sweets could be safely carried compared to other brands. This USP was extensively used in campaign slogans for decades.

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FedEx: “When it absolutely, positively has to be there overnight.” (1978-1983)

FedEx was the first business to concentrate on overnight air freight and first to employ package tracking. This inspired the company’s campaign slogan of “When it absolutely, positively has to be there overnight.” creating a massive competitive advantage.

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Domino’s Pizza: “You get fresh, hot pizza delivered to your door in 30 minutes or less – or it’s free.” (1973-1993)

The company practices what it calls the “make line” and other methods to produce and deliver pizzas quickly. This USP made it an official pizza delivery leader all over the world.

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Basic benefits, additional benefits, and USP – the subtle difference

You may have heard three marketing terms used when defining a product or service – basic benefit, additional benefit, and the USP. So what’s the difference between the three?

The difference between additional benefit and USP in particular is very important – not every standout selling proposition is also a unique proposition in the actual sense of the word.

Of course, selling propositions that are not strictly USPs can also be used in advertising messages. But this can only narrow the customer’s choice and not exactly direct it to your product.

Characteristics of a good unique selling point

In order to be considered an effective USP in terms of marketing, a unique selling proposition should meet three conditions:

The aspect of uniqueness is largely self-explanatory: the more unique the product or service, the greater the resulting competitive advantage. This also means that the USP should not be generic: “Cleans particularly well” is a claim that – if not supported by visible “power capsules” or similar unique selling propositions – can be claimed by any detergent.

Target group relevance, in turn, ensures that the USP also has actual customer benefits: a shelf life of 25+ years, for example, is not an actual advantage for detergent users who do their laundry every week. On the other hand, a detergent that ensures that black clothing does not fade is a clear advantage for anyone who often wears black clothing – for example as a discreet work outfit.

The proof behind the USP is unfortunately often overlooked, especially by new companies that still want to quickly assert themselves on the market. If, for example, it turns out for the customer that the black laundry is still fading to gray despite the unique marketing claims, the supposed sales argument can backfire fast.

Strategic importance

In the introductory and growth phases of the product life cycle, the concept of unique selling points works excellently, provided the product hits an unsaturated market with this unique selling offer. Advertising for the product with a USP is also very effective as it can be limited to just a few simple points.

In the maturity and decline phases of the product life cycle, however, the fixation of the product policy on the chosen unique selling point becomes a problem. In this phase, your own product is established, but the competing companies bring comparable products to the market. This also reduces the value of the chosen unique selling point, since it is no longer clearly perceived by the customer as such.

Therefore, the marketing strategy must adapt to the conditions of the mature market. Even though the differences between the competing products are smaller, which limits the development of unique selling points, the price can now serve as such. There are two sub-strategies: either you are cheaper than the competition for the same performance, or you offer more performance for the same money.

There’s one more strategy that differs from the rest: move away from material USPs and instead try to build an emotionally charged brand which inspires the customer to buy from you.

Why unique selling points are so important

Anyone who has ever looked at endless shelves with washing products in the supermarket knows that most products are interchangeable in almost all market segments. If two detergents differ only in the name and the packaging, the customer may randomly choose one of the two products. Unless one of the products has a unique selling point.

USPs can be identified not only at the product level, but also at the service level: e.g. the product has a 10-year guarantee, the company also delivers on public holidays, there’s a free gift with every online order.

If you want to promote yourself in a competitive environment – especially with a newly launched product – you have to make it clear to the customer why your product is the right choice. Unique selling points are defined and communicated to the customer for this exact purpose.

What Is Unique Selling Proposition (USP): A Detailed Guide

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Every customer looks for a reason why he should choose that specific product and not the others lying on the same shelf.

This reason is the key to making the offering different and stand out of the crowd, especially when the offering is similar to those offered by the competitors.

This is the unique selling proposition (USP) in marketing.

What Is Unique Selling Proposition (USP)?

A unique selling proposition (also referred to as unique selling point or just USP) is a unique benefit, feature, or characteristic of an offering which makes it unique from rest of the competing brands in the market and makes it more appealing to the customers.

Two key phrases that should be noted in this definition of USP are –

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Importance of USP

Features Of A USP

The biggest factor that makes an offering’s selling proposition its unique selling proposition is its distinctiveness. Distinctiveness means this benefit is limited to the specified offering and isn’t provided by any of the competitors. Besides this, here are two very important characteristics of a USP –

Types Of USP

Different offerings come with different USPs but most of these can be categorized into these three types –

How To Develop A USP?

Some are lucky enough to develop a product with a unique benefit that’s different from almost all the products in the market.

But many aren’t this lucky.

Moreover, with time, market changes, customers’ preferences change and there comes a need for the existing players to change the USP as well.

Here’s a process of how to find and develop a USP for a product.

Find The USP

Finding a USP isn’t an easy task. It involves heavy research on what’s actually needed but not offered well in the market.

It starts with understanding the target market, followed by competitor analysis, and ends with developing a competitor advantage.

Test and Refine Your USP

Usually, the initial ideas of what a unique selling proposition could be aren’t always right. One needs to test this hypothesis for its credibility. This is how it is done.

Communicate Your USP

The feedback and response lead to finding the USP that will make the offering stand out. Once done, the next step involves developing a 360° marketing campaign which stems from the USP.

Unique selling proposition examples

While almost every offering has its own unique selling proposition, here are some notable example of USPs of famous companies.

FedEx Corporation

The World on Time

FedEx, through this slogan and its work, gives a reassurance to its customers that it takes the job seriously and makes sure that the package reaches wherever it belongs on time, no matter what place in the world.

This a perfect example of a benefit-based unique selling point.

The milk chocolate melts in your mouth, not in your hand.

M&Ms sells because it is hugely different from its competitor brands. Unlike other offerings, M&M has a sugar coating which prevents it from melting. Hence, the tagline.

M&M is a perfect example of a feature-based unique selling proposition.

DeBeers

A diamond is forever.

DeBeers is known for its positioning based USP. The company sells diamonds which are considered to be necessary in weddings. The company marketed them as a symbol of eternal love which is unbreakable.

Go On, Tell Us What You Think!

Did we miss something? Come on! Tell us what you think about our article on unique selling proposition in the comments section.

A startup consultant, digital marketer, traveller, and philomath. Aashish has worked with over 20 startups and successfully helped them ideate, raise money, and succeed. When not working, he can be found hiking, camping, and stargazing.

Unique Selling Proposition (USP)

What is a Unique Selling Proposition (USP)?

3The unique selling proposition, or unique selling point (USP), is a marketing concept that refers to any factor or aspect of an object or service that differentiates it from the competition and highlights its unique benefits to consumers. A USP answers the question “how is your product better than that of your competitors?”.

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Why is a Unique Selling Proposition Important?

A clearly articulated USP can be an effective tool to help you shape and focus your marketing goals to successfully set your brand and products apart from your competition. A USP that strives to communicate unique benefits to consumers is often an integral part of a company’s branding strategy that helps it to stay memorable and form a positive impression in the consumer’s eyes.

You know what differentiates your products and business from your competition, but if you don’t communicate that clearly to your prospects through all the marketing collateral you create, it won’t make a difference.

How to Develop a Strong Unique Selling Proposition?

Remember that a USP is not a tagline, but a good tagline will effectively summarize the full USP in one sentence to make it impactful and digestible.

The purpose of a USP is to answer one question: “Why should a potential customer buy from you?”. A successful unique selling proposition can be just a few words (like a tagline) or a full paragraph, the word count doesn’t matter as long as you capture and clearly articulate the promise to your customers that makes you different and desirable.

You must undertake market research to find out why your current customers are choosing your brand over your competition. If you’re just starting out and don’t have customers that could provide you with such insight, research your competitors and look for areas that you could improve and innovate. Having a clear understanding of what makes your company special from the very start will help you grow faster, as more customers will buy from you, and achieve a better brand recall.

USPs are often grouped into the following categories: price, quality, service, speed, selection, convenience, guarantee, customization, originality, and specialization. Pick one that will be at the core of your promise and work from there.

To crystallize and communicate your unique strengths, ask yourself these questions:

Examples of Effective USPs

Want to Learn More?

Is there anything else you’d like to know more about and wish was included in this article? Let us know!

Unique selling point

What is a unique selling point?

A unique selling point (USP), also called a unique selling proposition, is the essence of what makes your product or service better than competitors. In online marketing, communicating your USP clearly and quickly is one of the keys to getting potential customers to convert on your site.

Why is a unique selling point important?

A unique selling point defines your company’s unique position in the marketplace, getting at the heart of your business: the value you offer and the problem you solve. A strong USP clearly articulates a specific benefit – one that other competitors don’t offer – that makes you stand out.

If all the products appear to be the same, your prospective customers won’t know which one is right for them. Being clear about your unique selling proposition helps them differentiate between the variety of choices available to them. It is a crucial part of effective selling, especially online where consumers have so many options.

A USP can also serve an important role internally, as it forces you to consider your company’s mission and its very reason for being. A successful business often determines which of their key competitive differentiators are clear.

As a business owner, you need to consider and communicate who your business is for, what drives you to offer the services you offer, and how you want to make a unique impact.

Your USP is your key differentiator and the reason your customer will buy from you and an important part of your marketing strategy for attracting new customers.

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Unique selling point examples

Zappos is an online shoe store, and there is nothing especially unique about selling shoes online. However, their selling point is unique: free returns. There is no penalty whatsoever for returning a pair of shoes you don’t want, a major convenience to customers and a strong unique selling proposition.

Toms Shoes is a shoe manufacturer. Again, there is nothing especially unique about that. But Toms Shoes’ unique selling point is that for every pair of shoes a customer purchases, the company donates a pair to a child in need. Toms Shoes helps put shoes on needy children’s feet; this is their unique selling point.

Nike is yet another company known for selling shoes. Yet they are differentiated from Zappos and Toms because they focus primarily on athletic shoes with prominent sponsorships with star athletes. Their USP is that they provide the best quality shoes for athletes and fitness in general.

Those are just a few examples of unique selling propositions. USPs are by their nature unique to each business, but roughly fall into three major categories:

For established companies, the USP can eventually become synonymous with their brand, as the company’s name is automatically associated with the unique value proposition that the brand offers.

How to communicate your unique selling point

There are many ways a company can communicate their USP to their customers and prospects. A few commonly employed methods include:

How to test your USP with A/B testing

If you are uncertain about what drives your customers to buy from you, then A/B testing your company’s USP on landing pages can help. By testing different USPs against each other, you can determine the messages that resonate best with your target audience by measuring a specific conversion goal such as a product purchase.

Let’s say that you sell Lutz marbles, a rare collectible type of marble. You are not sure whether people are more compelled to buy them for the ‘goldstone’ in the marbles or their age (they are more than 100 years old).

Should your unique selling point be the goldstone or their age?

You could find the answer to this question by setting up an A/B test for your landing page where you test two different headlines:

(By the way, the USP on a landing page isn’t always just the headline; it usually consists of some combination of a headline, subheadline and a bulleted list of benefits).

Using a service like Optimizely, you can track marble purchases as your conversion goal and see which USP gets a higher percentage of conversions.

How to Write a Ferociously Unique Selling Proposition

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Unless you’re fortunate enough to be the only player in your industry (say, the only dedicated supplier of lion-taming equipment in North America), you’ll need to differentiate yourself from your competition through your unique selling proposition, or USP.

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A strong, instantly recognizable USP can make or break businesses operating in competitive markets and niche marketing industries, so it’s essential that you leverage your USP and make it the cornerstone of your overall marketing strategy. Until you know what your USP is, and how to capitalize on it, your business will be just another voice clamoring to be heard.

In this guide to developing a unique selling proposition, you’ll learn how to write a truly compelling unique selling proposition, with help in these five areas:

What Is a Unique Selling Proposition?

Simply put, your unique selling proposition is what makes your business different from everyone else in your market. A strong unique selling proposition can help you attract and retain customers and reduce client churn.

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For some businesses, identifying a USP will be easier than others. For example, if your business really is the only dedicated supplier of lion-taming equipment in North America, this will be your USP. Sure, there are plenty of companies that sell general circus equipment, but your business focuses solely on high-end accessories for the discerning big cat behavioral performance artist – this is what sets you apart from the rest of the clowns.

However, for most businesses, identifying a unique selling prop is not this easy. In fact, for more conventional companies, it can be very difficult. Fortunately, there are a number of ways you can make a name for yourself, even if you make or sell a common product or service. Let’s look at some unique selling proposition examples.

Unique Selling Proposition Examples: What Makes a Strong USP?

The best USPs directly address a specific need experienced by a company’s ideal customer. A great unique selling prop, sometimes known as a value proposition, should also emphasize what individual quality separates a business from its competition.

Here are some examples of unique selling propositions that work.

Vistaprint’s Unique Selling Proposition: Fast, Cheap Printing for Growing Businesses on a Budget

Small, growing businesses and solo entrepreneurs have to-do lists a million items long, and one of those items is the need for business cards. You might also need signage for your physical business or delivery vehicles, branded swag to raise brand awareness as you make the conference rounds, labels and stickers, brochures … you get the idea. So where do you turn?

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Vistaprint is a one-stop shop for online printing: You can order everything you need online and get it shipped fast. It’s easy and affordable and completely engineered with small businesses in mind. What’s not to like?

Saddleback Leather’s Unique Selling Proposition: Rugged Leather Goods with a 100-Year Warranty

Credit where credit is due – if it hadn’t been for the guys over at Fizzle, I might have gone the rest of my life without discovering Saddleback Leather. This company’s USP (and website in general) perfectly exemplifies how it addresses customers’ specific needs and highlights a truly unique quality of its products.

Now, you might think that finding a unique – and memorable – USP for a leather satchel company would be difficult. However, take a look at Saddleback’s 10-part “About Us” page.

Amateur bullfighting. Escaping from a corrupt Mexican Federal Police officer. Trading puppies for 100 tacos in Juarez – Saddleback’s “About Us” page reads like a pilot for a new AMC show. This ties in perfectly with the rugged, adventurous aesthetic of the company’s products.

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As if that weren’t enough, Saddleback also offers a 100-year(!) warranty, which the firm half-jokingly refers to as its “They’ll Fight Over It When You’re Dead” warranty. How many companies remind you to mention a product warranty in your will? Not only does this make a bold statement about the company’s confidence in the craftsmanship of its products, it also appeals to its ideal customer – daring, thrill-seeking travelers who need bags that can survive their globe-trotting adventures.

Seriously, just writing about these bags makes me want to buy one. Genius.

Voodoo Doughnut’s Unique Selling Proposition: Donuts So Wacky, the Wait Is Part of the Experience

Donut shops are ten a penny – especially here in Boston, where you can trip on a curb and practically fall into a Dunkin’ Donuts – but Voodoo Doughnut in Portland, Oregon, manages to make traditional baked goods sexy in a highly distinctive way.

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Although virtually everything about Voodoo is unique, its extensive range of donuts (and the obvious relish with which the owners devise their sugary creations) set it apart from any other donut shop. In their quest to create a truly unique menu, Voodoo’s owners even fell afoul of the FDA after experimenting with two particular recipes that included Pepto-Bismol and NyQuil – stunts that could have threatened their business, but ultimately helped word of the small donut shop go viral.

A diverse menu isn’t the only thing that makes Voodoo unique. Its hot pink rockabilly décor, cash-only policy and late-night opening hours have made Voodoo far more than just a donut shop – it’s a tourist attraction. Sure, you can get a donut almost anywhere, but Voodoo’s USP is the diversity of its menu and the experience of waiting in line for a decadent taste of what lies within.

The popularity (and notoriety) of the store has even allowed the owners to open a second branch in Denver, and additional stores are planned for other locations across the country. Voodoo’s USP gets people talking in a way that few social media marketing campaigns could ever hope to accomplish.

Osmium’s Unique Selling Proposition: All Hand-Made and All Local

The clothing and fashion industries are savagely competitive, and finding a unique selling proposition in this market is far from easy – but that doesn’t mean it has to be complicated, either. This is exemplified excellently by Osmium.

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The phenomenal rise in popularity of handmade goods in recent years has transformed traditional arts and crafts from a casual pastime into big business, thanks in large part to the success of online handmade marketplace Etsy. However, clothing remains one area in which mass-produced goods are still very much the norm, due to the substantially cheaper materials and overseas labor utilized by most chain retailers. This is how the simplicity of Osmium’s USP helps the small company shine.

Every single garment sold by Osmium is made by hand, with the majority of the company’s inventory being made right here in Boston. The company places emphasis on its ethical production processes and the durability of its products, both of which differ starkly from most conventional clothing manufacturers.

Unique Selling Proposition Best Practices

So, now we’ve seen some strong unique selling proposition examples, what should you bear in mind when trying to create your own USP?

Get Inside Your Ideal Customer’s Head

Before you start thinking about which qualities set your business apart from similar companies, you need to know almost everything about your perfect customer.

When you’re identifying your ideal prospect, consider the following:

Remember – it’s not enough to merely target a rough demographic. You need to know exactly who you want to sell to and why. Once you know this, you can get to work on the next unique selling proposition best practice, which is…

Explain How Your Business Solves Your Ideal Customers’ Problems

Consumers don’t want to buy products – they want to solve their problems. This could be as simple as purchasing a reliable set of tools that will last for years, but it can (and frequently is) much more complex.

Take the cosmetics industry, for example. Companies in this space don’t just sell make-up – they sell lifestyle ideals; glamour, confidence, and style. Think about this in a problem-solving context; people who may not feel glamorous, confident or stylish will if they use a particular product. This lies at the heart of most cosmetics advertising, and this concept applies to many other industries, too.

To create a strong USP, you have to examine the profile of your perfect customer and then market your products in a way that shows them you can meet their needs and solve their problems. You can’t hope to write persuasive, compelling copy in the voice of the customer unless you know who they are. If your prospective customers choose your products, how will their lives be improved? What makes your business so different that prospective customers should choose your products or services? The answers to these questions should form the bedrock of your USP.

Make Your Business Irresistible to Your Customers

Now that you know who your ideal customer is and the problems they face, it’s time to tell them precisely why they should choose your business over your competitors.

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FedEx is the perfect example of this principle. Sure, there are dozens of package carriers people can choose from (including the USPS), but FedEx’s slogan of “When it absolutely, positively has to be there overnight” transformed the company from just another logistics company to a market-leading global brand. Even though the company dropped the slogan years ago, FedEx’s USP and branding helped it become a proprietary eponym – a trademarked name often used as a generic term, like Kleenex, Band-Aid and Coke.

Another USP best practice you should think about in this stage is making your customers a promise. FedEx, for example, guarantees it can get any package (from anywhere) to its destination overnight. This not only addresses customers’ specific need (reliable package delivery), but also makes them a promise – to deliver their packages with care, on time, every time.

Create an Elevator Pitch

So, you’ve figured out who your perfect customer is, explained how your business can solve their problems, and told them why they should choose you instead of the competition. However, you’ll rarely have the opportunity to wax lyrical about any of this at length. Just as advertisements have mere seconds to capture consumers’ attention, your USP should be almost immediately obvious.

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Thinking of your USP in terms of an elevator pitch is a great way to condense what makes your business different, and how you can use it as the foundation of your marketing efforts.

A Unique Selling Proposition Template

Let’s see how this works, using our lion-taming equipment supply business as an example. Note that everything in brackets can be changed to suit the specifics of your company, and that this framework can apply to both companies and individual products.

See how easy it is once you have all the pieces of the puzzle? If someone asks about your business, you can use this as a snappy, concise way to explain what your company does. Thinking of your business or products in this way allows you to focus on what really matters – your ideal customer – and identify any glaring problems with your USP.

How to Use Your Unique Selling Proposition in Advertising

Now you’ve nailed down your USP and condensed it into an elevator pitch-style summary, how can you use it in your PPC advertisements? By applying everything above to the principles of writing killer ads.

It’s essential that your USP is highlighted in your ad copy. Preferably, it should be in the headline or first line of your ad. If you choose to feature your USP in the headline, make sure it’s keyword-rich. Alternatively, if you include elsewhere in your ad copy, make sure it emphasizes the benefits of using your product or service. Many advertisers can’t resist the temptation to rave about product features before moving onto the benefits to their customers, but this is a rookie mistake. By emphasizing the benefits of your service, you’re placing greater value on the emotional payoff and appealing to your prospects’ desire to solve their problems.

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Safety was the primary benefit in this ad, but what about choice or specialized knowledge? You could create other ads that emphasize the diversity of your inventory or the specialized knowledge of your staff across both lines of copy in your ad:

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However you choose to incorporate your USP into your PPC ads, be sure to target one highly specific need per ad. Trying to solve all your prospects’ problems in a single ad will dilute its strength and result in lower conversions.

How to Use Your Unique Selling Proposition on Your Landing Pages

Now that you’ve written a series of compelling PPC ads highlighting your USP and its benefit to your ideal customer, it’s time to turn your attention to your highly optimized landing pages.

Let’s use the first ad above as an example. Creating a dedicated landing page for this ad could focus on the USP in several ways and reinforce the benefits of ordering from Lucky Leo’s. How?

It almost goes without saying, but you should make landing pages for each of your ads. This means that each landing page should highlight a different benefit of your USP, and include relevant calls to action.

Be Unique

What’s your company’s USP? Did you know what it was right away, or did you figure it out as you went? Tell us in the comments!

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Meet The Author

Dan Shewan

Originally from the U.K., Dan Shewan is a journalist and web content specialist who now lives and writes in New England. Dan’s work has appeared in a wide range of publications in print and online, including The Guardian, The Daily Beast, Pacific Standard magazine, The Independent, McSweeney’s Internet Tendency, and many other outlets.

See other posts by Dan Shewan

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