The death of the USP

Ok so maybe I’m being a tad over dramatic when I use the term ‘death’.  It’s not that the USP is dead per se, but it certainly is living out it’s final days in some retirement home along side telemarketing and the VCR.  I am sure there are people still finding certain levels of success hawking goods via the phone and of course we will need a device to play all thoseVHS tapes stockpiled in the attic from the mid 90’s but like anything else, evolution kicks in and the human race finds a better way.  While the USP can still serve a purpose to the average small business owner, I think that evolution will once again have it’s way.

As a small business owner you’ve probably come across the term USP a million times.  USP stands for ‘Unique Selling Proposition’ and many believe it should form the backbone of your marketing.  The basic premise is that each and every business should have a unique selling point.  Something that a customer can associate with that specific business and specifically a definitive benefit gained by doing business with that particular business.  The key is that it must be unique and powerful.  It must be something different that sets the business apart from the competition and yet powerful enough to convert new prospects.

Now I am a huge fan of being different especially when it comes to small business.  For me identifying Points of Difference is a crucial exercise that every small business should engage in.  The problem I have with the USP is that the vast majority are merely SP’s as opposed to USP’s.  In many cases the ‘uniqueness’ is no longer present.  What was once a very distinct point of difference or USP is now just par for the course.  Take FedEx for example.  “When your package absolutely, positively has to get there overnight” was a great USP at one point.  Now you would be hard pressed to find a reputable courier company that doesn’t offer some sort of same day or overnight delivery.  Not so unique anymore.

My point is that without the ‘unique’ you basically only have a selling proposition.  With our unprecedented access to information and the huge selection we have thanks to the global economy having a selling proposition will hardly cut it.

For a great article on the evolution of the USP check out Marsico Marketing.  John is a marketing genius and he helps small business owners develop their “DNA” or Distinct Natural Advantage.  Distinct Natural Advantage is a concept coined by John and involves what he calls the Seven P’s…
(1) Purpose (2) People (3) Pain (4) Promise (5) Proof (6) Positioning and (7) Packaging

John is writing a 7 part series on developing your ’Distinct Natural Advantage’ and I highly recommend it to any small business owner looking to take their business to the next level.