What’s it: A unique selling point is something that makes a product attractive to consumers and different from competitors. It can take various dimensions of a product, such as function, features, quality, performance, design, and sale price. A unique selling value synonym is a unique selling proposition.
Creating unique value is an essential part of any marketing strategy. That is the reason why consumers prefer one product brand over another. When they like it, consumers will tend to be loyal, willing to buy it later, and willing to recommend it to their family or friends.
What are some examples of unique selling points
As I said earlier, a unique selling point can take on various dimensions of a product. It can be a lower price, better product performance, a smaller version of the product, additional functionality, or simply using a different color or design.
The following are examples of value propositions from various global brands.
- An innovative design like the Apple iPod
- A performance like Mercedes and BMW
- Free returns like Zappos
- A fresh product by Domino’s Pizza
- Security and punctuality like FedEx package delivery
Why unique selling points matter
There are various reasons why companies should build unique selling points. First, it makes the product appear attractive to customers. It creates consumer preference if they like it.
Second, uniqueness allows companies to charge higher prices and creates customer loyalty, making them reluctant to switch to competing products. To do so, the company develops uniqueness in non-price dimensions such as product quality and performance. That will ultimately support a strong brand image, making demand less sensitive to price changes.
Third, uniqueness encourages positive publicity from customers. Suppose the company’s value proposition matches or exceeds consumers’ expectations. In that case, they will continue to buy and are willing to recommend the product, either through word of mouth or through social media.
Fourth, positive publicity ultimately increases the company’s market share. Publicity brings new customers to the company, thereby reducing promotional costs. It then increases the customer base and product sales.
How companies develop unique selling points
Business exists to meet consumer needs and wants. And fulfilling needs and wants is the basis for creating unique selling points. How to? There are several steps that the company must do.
First, the company needs to describe the needs and wants of consumers from the target market. It involves efforts such as market segmentation and identification of the psychological characteristics of target customers.
The second is to list what solutions the company offers to meet these needs and wants. What needs or challenges do people face, and how is the business helping them to overcome. For example, a company offers an affordable solution because consumers in the target market are price-conscious.
The third is refining the right solution, typical, and has the highest chance of success. The company may come up with several alternative solutions, but competitors have offered them first. Or, the answer may not match the company’s current resources and capabilities, making it less likely to be successful and profitable.
Say, most of today’s competitors offer low prices. Hence, if the company also provides a cheap product, it may not be profitable because of higher competitive pressure. It is also impossible for the company to reduce production costs due to limited production capacity for mass production. Consequently, companies prefer options that are more affordable but with better quality.
The fourth is to build a promise to the customer, creating a perception. Companies can use various promotional channels to create a customer perception that even if prices are a little higher, they are doing it better.