HOW TO DEVELOP YOUR UNIQUE SELLING PROPOSITION (USP) AND WHY IT IS IMPORTANT

What is it that separates your retail business from others selling what you sell?

Why should people shop at your shop?

When people think of your shop what do they think? What is memorable?

Your business has to be different, now more than ever before - different from other retailers and, most important, different from other retailers in your channel.

Differentiation is key to attracting new shoppers, retaining existing shoppers and getting them spending more. Differentiation beyond what you are probably doing today.

In his 1960 book, Reality in Advertising, Rosser Reeves, a respected US advertising executive, introduced the world to the concept of the Unique Selling Proposition, USP for short.

Reeves defined USP in an advertising context:   

Each advertisement must make a proposition to the consumer: buy this product and you will get this benefit.

The proposition must be one that the competition either cannot or does not offer.

The proposition must be so strong that it changes consumer behaviour.

In the 1960s and 1970s, the concept of a unique selling proposition evolved from being essential to advertising to being essential in business. Finding your business USP was considered mission critical to businesses, retailers especially. Businesses drifted however and forgot about the importance of a USP.

Jack Trout told us just a few years ago that it was as relevant today. In 2000, he said that a Unique Selling Proposition was mission critical in business in his aptly titled book Differentiate or Die.

Differentiate of Die. There is no doubt about the call to action in the title, no doubt about the consequences of inaction.

Yet many retailers, for the most part, have remained still in the face of an onslaught of competition.

Retail is tough today. The differences between competitors fewer. We are surrounded by competition and it grows by the day. Standing still is not an option.

A reasonable question right now would be: isn’t being part of a marketing or banner group enough? Our answer to that is no!  Marketing groups usually do not control what you do in your business, not enough at least.  They present you with excellent opportunities but who, what, why and when is up to you.

You need to develop your own Unique Selling Proposition.

Differentiation could be service, products or location or a combination of these. Differentiation will most likely not be price as anyone can match this easily. Price is, after all, the last line of defence in any business battle. That said, there are some major price-focused success stories – Aldi for example. It is rare in an independent retail situation.

A good USP will not require an advertising campaign to communicate. It will become obvious through actions and decisions. By living the USP in every facet of the business you soon become seen as unique by shoppers and this can drive word of mouth and success. A good USP will frame every decision you make. It feeds from your mission, your reason for existing.

Your USP must reflect passion for this is what drives your love of your business … and you do love your small retail business don’t you?!  This is where small retailers are different to big retailers. Where they get lost in KPIs, share price and other metrics, we small business retailers think in personal terms, often with emotion.

Here are some tips for creating your USP …

1. Take your time.You will be done when you are done. Getting your USP right is more important than meeting a deadline.
2. Escape. Get away from the business to think about what you want to be known for. A good location is sitting across from the entrance to your shop, watching.
3. Love. Work out what you love about your business and what you want to love about your business. Next, think about what you want your customers to love so much they will tell their friends.
4. Differentiate. Think about what’s special in your area or marketplace.
5. What do you stand for?If someone says what do you do? you will probably answer with the facts. If they say, no, I want more, what makes what you do special? Answer this and you take them inside what makes you tick. So, you need to know, what does your business stand for?
6. Define. Put into words what is special about your business.  Brainstorm ideas in ten words or less. Get as many down on paper as you can.
7. Would you be missed?It is said that people often define their view of themselves by wondering if they would be missed. Think about your small retail business in this way. Would you be missed? If so, how and why?
8. When you think you are done you are not. Your USP today needs to evolve with you and your business.

It might take a few goes, working through these ideas. The result should be something close to a USP for your business.

Your USP needs to be succinct, passionate and unique, something that explains why your business is different and why people should shop with you.

A big challenge for many small business is the diversity of the business. A USP is unique yet so much of what retailers sell is not unique. So, a USP may start with one part of the business, getting you known for that one part.

If coming up with a USP for the whole of the business is too daunting, start small, focused on one department.

This is what we have done in one of our own retail shops. Several years ago, we declared that we want our shop to be the best card destination in the whole Westfield Southland complex – a centre with 300 shops and more than twenty outlets selling cards including majors, independents, discount stores and gift shops with cards.

We made the decision to be the destination for cards and immediately involved Hallmark in our mission. They agreed to support us.

We did a complete re-plan. This includes creating new feature areas and a better strategy for promoting cards outside of the card department.

Then we made access to the card department easier from the entrance to the shop and put in place layout rules to keep the card department easy to access and very shoppable.

Next is staff training to engage more personally with shoppers and the card offer.

Finally is our promotion of a fresh approach to cards at Southland.

The approach we are taking at Southland is an example of working on one segment of the business for a USP, getting that right and then fanning out into other parts of the business.

If you think you are close, test it with your employees and family. Test it with yourself too by asking what you would change in the business with this USP in place, what decisions would be different?

What does your business stand for? What separates it from others selling what you sell? What makes it different to other retailers in your channel?

The right USP can guide your decisions and help you enjoy more success.