Ditch the USP!!
Written by Trish - November 27, 2008 15 Comments “You must have a USP!” has become a universal chant of business experts the world over, and though their intentions are good, I think that we need to stop and really think about the concept and how it relates to business in a practical way.
As a way of standing out from the competition, the unique selling proposition is a useful concept. Any way you can differentiate your product or service in the buyer’s mind is good. To come up with a USP, you have to stop and think about what you are offering, why customers would buy from you instead of someone else, and how you can best convey those reasons to your market. That kind of strategic thinking is always useful because it is not something we often make time for.
So pondering a USP as an exercise to hone our marketing messages is a good thing. The place where I think many companies get hung up is on the word “unique.” If you believe that you must always have a USP, you are going to have to revise it frequently.
Why? Because no matter how unique your selling proposition is, if it works, it won’t be unique for long.
Here are some examples of what I’m talking about: Many years ago, a man named Montgomery Ward came up with something completely new–offering an unconditional money back guarantee. More recently, a gentleman by the name of Joe Sugarman also came up with something completely new—the idea of offering a toll free phone number to order products from his catalogs or infomercials. And a guy by the name of Joe Karbo was the very first person to write a “how to get rich” book based on his own personal experiences, and from his own viewpoint.
All three of those examples were unique—in fact, they all caused quite a stir in their respective markets when they were introduced. And they all worked brilliantly to capture sales. As a result, instead of being unique today, all three of those USPs have become common practice. While that’s not surprising, it does point out that any USP is going to have a finite shelf life.
Still, a USP does have a place in the product development process. And for either products or services it can work really well to gain a temporary market lead—until your competition catches up. But creating a USP simply because that’s how it’s done—as many marketers and business owners do—can waste time and resources.
A USP is a revenue-generating tool among many other revenue-generating tools. Use it for a specific product or marketing campaign when you are confident that having one is really going to pay off. Otherwise, invest your resources on other tactics.
Having said all that, I assert that there is one feature that remains unique no matter what—your personality, or, if you want to say it fancy, your company’s culture. The customer’s experience of working with your company will always be different from their experience of working with someone else. There’s no way to replicate that part of the purchase process.
So, though you will gain by applying the USP as a tool for specific marketing campaigns, in the long run your ability to get and keep more customers resides in how you interact with them day after day, month after month, and year after year. Investing time and resources in understanding your personality as a business, aligning it with your market, and expressing it in all your interactions is what will give you the best return in the long run.
Related posts you might also like:
Read the Comments
15 Outstanding Responses to "Ditch the USP!!"
Sharon Lindenburger on November 27, 2008 at 3:21 pm | Permalink
You are so right! Altogether too much time (not to mention anxiety) is spent on trying to come up with reasons why something is “unique”. As you point out, even when something is truly unique, it doesn’t stay unique for long.
I completely agree that the best long-term strategy for any service provider is to focus on the quality of the relationship with the client and on the shared values between provider and client.
As you say, the one thing that always WILL remain unique is your own personality. This is something I teach my book coaching clients whenever they start worrying about how their book will distinguish itself from other books on the same subject. I tell them that the one unique quality is always going to be their own writer’s voice. The stronger and more genuine that voice, the more “unique” the book will be, even if there are 100 other books on the same topic.
It’s time we stopped focusing on what is unique and instead focus on what is genuine and distinct in who we are, both personally and professionally.
Thank for writing about this very important topic!
Sharon Lindenburger
http://www.contentcoaching.com
Sean D'Souza on November 27, 2008 at 10:16 pm | Permalink
Trish: Uniqueness isn’t about techniques. The concepts you talk about are techniques. USP is central to your entire being. It’s what makes you who you are. It’s your DNA.
It’s not dominated by technology or trends. And a lot of good USPs hover around ‘abstract concepts’ such as ‘safety’.
I personally wouldn’t recommend a company run without a USP. The lack of USP is what creates a factor of being just another commodity.
-Sean
http://www.psychotactics.com
Trish Lambert on November 28, 2008 at 8:48 am | Permalink
@Sharon – I have a concept that I assert should be focused on rather than a USP: The Distinct Value Statement. This statement IS worth spending time and brain cells on, because it expresses what a freelancer/company stands for, why they do what they do. This is something that, unlike the USP, will not change with the competitive landscape and allows the prospect to clearly see how one provider differs from another–not in the “stuff” they provide, but in their qualities and values.
@Sean, well I don’t write this stuff to be agreed with all the time. You are sticking with the original or ideal intent of the USP, and that is certainly your prerogative. I am addressing how it is perceived by the marketin I serve, and how it is taught by the marketing schools, consultants, and experts that abound out there.
Even if they once did (though I question that), USPs no longer express “abstract concepts” or what is central to a company’s or person’s entire being. The old “30 minutes or it’s free” proposition of Domino’s Pizza is a classic case study of USP used by pretty much anyone who touts this concept…I seriously doubt that that was part of the company’s DNA. Once the competitors jumped in with comparable offers (and Domino’s lawyers said the offer was too risk-laden for the company), Domino changes its “USP” pretty darn quick.
You can define USP any way you want, but the portion of the market that I serve DOES perceive USP as a technique. And it’s that technique that I recommend ditching. The “in the DNA” piece is what I call a Distinct Value Statement, and in that case, I wholeheartedly agree with you. A freelancer/company that doesn’t know why they do what they do, what makes them get up in the morning, what drives them, doesn’t have distinct value, and will certainly end up in commodity competition.
Joseph Sugarman on November 28, 2008 at 10:29 am | Permalink
Excellent examples of how things change. And now with the Internet things are changing at a very rapid pace. Keep up your good advice.
Joe
Sean D'Souza on November 28, 2008 at 11:52 am | Permalink
Trish: I agree with the fact that technological advancements, e.g. Dominos Pizza may quickly get eroded. And that what you’re talking about is indeed the term USP as defined by the market so far.
However it’s still worth the trouble for a business to create (not find a USP). Creating is slightly different from finding a USP. And while I have not a doubt that the USP (as defined by marketing books) gets eroded over time, it still gives the first-time user a massive headstart.
Rudolph the red-nosed reindeer is a good example.
Most of us don’t even know the other reindeer names.
There are lots of tiny examples, where a customer finds it reassuring to know what makes one company different from another, no matter how minute the difference. It’s actually reasonably easy for five companies to make almost identical presentations to a prospective client, and to have almost identical products/services, and yet for one company to win on USP alone.
And as I write this answer, a bit of a realisation comes upon me. A USP may be a factor of uniqueness, but its more a factor of lack of confusion. We’re taking the entire product/service and helping the seller boil it down to one word. And helping the buyer justify it to themselves in one word. This speeds up the transaction because once there’s a just reason to buy from one person vs. the other, then it’s clear why you’re buying. And the purchase goes ahead quicker than normal.
This USP comment is almost boiling down to a factor of consumption. (see http://www.spidersecret.com)
Hmmm….
Sean D'Souza on November 28, 2008 at 11:59 am | Permalink
And admittedly the USP e.g. Dominos Pizza’s 30 minute promise can quickly get eroded by competition. But let’s change the question.
Would we even know a brand such as Dominos, if it weren’t for their USP?
There are millions of pizza stores out there. Serving identical, if not better quality pizza than Dominos.
But the USP (not the quality of the pizza) alone put Dominos into publicity-ville and made them a $1 billion company. It’s possible that they would have made it anyway (hard to tell) but I sure think the publicity they’ve received over the years helps considerably (and must add up to a few hundreds of millions of dollars).
Their pizza is still nowhere as good as other pizza.
But the USP has clearly worked, and continues to create branding long after they’ve stopped using it.
Trish Lambert on November 28, 2008 at 12:15 pm | Permalink
The USP does have a place…but in the PRODUCT space. No one seems to have made the distinction between products and services in re: USP, and I’m making it now.
A USP can and should be created for PRODUCTS, not for a company as a whole, and not for a service firm. The way a service firm does business is why people buy from them…and while it may not be unique, it is distinctive enough to gain clients.
Freelancers and free agents need to leave USP’s to product firms and focus on what is really distincitve about the way the serve their markets. Forget being unique…be different and distinctive enough from the majority of your competitors and you’ll do fine.
Thanks for your always thoughtful input. I invite you to continue the discussion if you feel moved to do so, but neither of us is going to back down, my friend. I know that my assertion works for the people I serve. And I know that you know it works for the part of the market you have in mind. So I suggest we agree to disagree, and allow my readers to decide which viewpoint works for their particular circumstances. Viva diversity!
Sean D'Souza on November 28, 2008 at 12:24 pm | Permalink
In a discussion it’s almost natural to take sides. I’m not in it for taking sides. I’ll happily jump over the fence if your angle consistently brings greater benefit and results.
I take the counter-point because it makes me think better. The more I try to justify it to you, the more fool-proof I have to make it in my own mind.
You’ve got me thinking. To me that’s of extreme value.
And I’d be interested in what you suggest your customers do instead of using a factor of uniqueness. If five freelancers created the same kind of service (e.g. I used to be a cartoonist): How would you as a buyer choose between five different cartoonists, if you wanted to hire just one of them?
Sean D'Souza on November 28, 2008 at 12:36 pm | Permalink
I’m also curious why you’d say that Products would need/or could use a USP, but not service firms.
And the reason I ask is this:
1) That any firm has different services.
2) Each of the services have a brand name and specific purpose.
3) So each service closely replicates a specific ‘product’.
An over-arching Uniqueness for a company may or may not be critical, but even there I have doubts. I’ve worked with service firms that have used their uniqueness quite effectively both as an over-arching concept, as well as on individual products/services.
Admittedly the over-arching uniqueness is harder to maintain. It’s like having five or ten kids (five or ten products/services) and trying to communicate why the ‘family name’ is unique. But it’s not impossible.
Should a firm go nuts about trying to create an over-arching uniqueness? I don’t suggest anyone going nuts over anything. But given a pitch situation where five identical firms were pitching close to identical services, how could you tell them apart?
I’m hoping you can clarify.
Trish Lambert on November 28, 2008 at 12:38 pm | Permalink
No 5 cartoonists are going to have the identical style. Your cartoons are quite different from Paul Durban (www.bolofeesh.com) or Scott Adams. In addition, the way you approach your business, how you work with your clients, and what you believe about the world in general will add up to the Distinct Value Statement that I outlined to Sharon (see comment above) and mentioned to you in my first response (you DID read it, didn’t you? grin).
People who resonate with your artwork, your ideas, and your way of interacting with them will hire you. People who don’t will go elswhere.
A Distinct Value Statement doesn’t have to be absolutely unique, it comes from the values and beliefs of the provider. We all have distinct value, whether we are conscious of it or not. If a freelancer gets conscious of that value and communicates it clearly, she will attract all the business she needs to have more money than she thought possible. If a free agent ditches dealing with USPs and puts his energy into demonstrating his distinct value to his market, he will get booked solid.
And there will still be plenty of clients for everybody else! Yippee!
Sean D'Souza on November 28, 2008 at 2:15 pm | Permalink
You mention that our cartooning styles are different. To me that’s not a value statement. It doesn’t enter into the realm of belief or values of the supplier. It is a distinct identity.
As a cartoonist, I could be the ‘cheapest, most expensive, quickest, using specific type of media’ and have varying points that make me unique. Or known for my uniqueness.
I know this debate could go around in circles.
I’m saying that I agree with you. That values and beliefs matter. I’m saying that there’s an AND. Your ‘Distinct Value Statement’ AND your uniqueness.
Both can co-exist. And go to make a stronger brand image.
Coach Davender on November 28, 2008 at 7:56 pm | Permalink
A favorite aphorism of mine is “People don’t just buy my products or services, what they want above all is a personal connection with them”. Likeability, trust and credibility come first from a personal connection, that’s what first and foremost distinguishes me from others. You will do business with me if you know me and trust me.
USP (and UBPs or Unique Buying Propositions), especially for service micro-businesses, assume that the client is buying something from an unseen entity hiding behind a carefully crafted mask. By first offering opportunities to create a personal connection between me and my prospect, they get to know me, trust me, and eventually I become the only game in town.
In today’s crowded marketplace, every competitor is shouting out their USPs to the sheeple, thinking that they can “convince” someone to buy. I believe that first creating a personal connection is the way to go. I can then choose my *clients* based on whether or not I want to do business with them.
But then maybe that’s my “USP” – the personal connection? (uh oh, fell into the trap!)
Sean D'Souza on November 28, 2008 at 9:11 pm | Permalink
Uh, oh
Mike Baldwin on November 30, 2008 at 4:16 pm | Permalink
Hi Trish,
This is a great post and shows how bonded we are as humans to having a simple focussed message. However to me life is never simple. I love the comments the Coach Davender makes in what he thinks may be his USP that it is his connection with people. Relationships with people and indeed products and services are an interconnected bundle of different complexities meeting ever present needs in all of us. However our simple brain in many ways likes to represent this complexity into a simple word or phrase, hence the USP. So I would like to propose an “and” context here, one where we can appreciate what the product/service/person is giving us AND be able to reduce it down to a simple word or phrase. Maybe its like a good bottle of wine that is described as fruity!
Trish Lambert on November 30, 2008 at 4:59 pm | Permalink
@Davender, personal connection is where I recommend a service firm (and I’m talking about solo service firms like freelancers and consultants) invest energy. Don’t worry about having to come up with a USP. Instead cultivate relationships with clients. It doesn’t take uniqueness to do that–examples of feedback I receive from my clients regarding why they do business with me include I do great work, I keep my word, and I am very responsive. None of those are unique to my services, but that doesn’t keep the client from valuing them.
As one-person shops, we have to be really careful where we invest our energy–and I assert that spending time on a USP is not going to create the return that the experts claim it will.
@Mike, thanks for posting! Yes, I agree that we like to simplify things–hence my suggestion of using a Distinct Value Statement rather than a USP. As I mentioned already, the aspects of my services that has my clients keep coming back to me are by no means unique, but they are distinctive (in my clients’ minds). I would get very little extra traction in my marketplace by striving for a unique statement. Distinctive does the job just fine!!!