The Advantages of a Unique Selling Proposition

by Neil Kokemuller; Updated September 26, 2017
Hispanic car salesman next to new car

A unique selling proposition is a key positioning message a company or sales representative presents to prospects. Your USP explains why your product or service is bigger, better or different than competing alternatives. Advantages of a USP include clear differentiation, improved revenue, loyal customers and simpler selling.

Clear Differentiation

Differentiation is the company or product attribute that separates you from competitors. A unique selling proposition makes your differences clear to prospects and compels them to give your brand strong consideration. Without a USP, you allow the prospect's buying decision to become very arbitrary. In such cases, the low price often wins out. Unique features, quality materials, better style, elite service and brand reputation are common attributes on which a company creates a USP.

Improved Revenue

When you offer a unique selling proposition and prospects clearly see it, your revenue typically improves or exceeds expectations. People buy the product or service that best matches their needs, and that offers the best combination of benefits and price. The more significant your USP, the greater your potential revenue advantage. Discerning prospects may pay top-end prices for a reputable brand with materials they view as the highest quality or most durable.

Loyal Customers

When you promote a USP and deliver an appealing value proposition, buyers are likely to return for a future need. A buyer may look to repeat a car purchase with the same dealer or sales rep after getting a great deal previously. Each repeated, positive experience contributes to budding favorable sentiment. At some point, repeat purchases evolve into feelings of loyalty to your business. Loyalty strengthens the bond, gives you some wiggle room on mistakes, allows you opportunities for growing revenue and drives referral sales.

Simpler Selling

Sales representatives benefit when companies develop and offer a compelling unique selling proposition. It is easier for a salesperson to genuinely convey value when he recognizes it himself. When a rep struggles to see value himself, he may feel unethical about pushing benefits or persuasive messages on unsuspecting prospects. If the salesperson uses the brand himself, it becomes even easier for him to passionately and persuasively sell value to prospects.

About the Author

Neil Kokemuller has been an active business, finance and education writer and content media website developer since 2007. He has been a college marketing professor since 2004. Kokemuller has additional professional experience in marketing, retail and small business. He holds a Master of Business Administration from Iowa State University.

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