5 Steps to Build a Strong Unique Selling Proposition (USP)

Step 1 – Understand Your Market and Target Audience

Competitor Benchmarking 

Take a close look at your competitors: What are their product and service offerings? How do they position themselves? What customer feedback are they receiving?

It’s essential to create a SWOT (Strengths, Weaknesses, Opportunities, Threats) diagram for each of your competitors. This will make it much easier for your brand to identify where the ideal market for you lies. For example, if your main competitor tends to prioritize very low prices with average quality, your USP could be positioned around using high-quality products while emphasizing the durability of materials. 

Define Your Target Audience 

Who are your customers?

To help develop your USP, it’s necessary to create customer personas: What are their needs, desires, frustrations, and aspirations?
For example, if your brand sells clothing, and a large portion of your customers has an eco-conscious tendency, this audience will likely prioritize the ethics and sustainability of a product rather than its cost.

Identify Trends 

What is happening and what will happen in the market you are trying to tap into? To answer this crucial question, an e-commerce brand has many tools at its disposal.

Here are some examples:

• Consumer insights analysis via Google Trends, hashtags on social media, forums, and reviews, as well as internal sales data that provide a better understanding of purchasing behaviors.
• Competitive monitoring through tools like SimilarWeb.
  

Step 2 – SWOT & Differentiation – Identify the Angle to Sell From 

Taking a moment to list how a brand differentiates itself from its competitors is a very effective exercise for developing a solid USP.

For example, answer the following questions:

• What are the brand’s main objectives?
  Boosting sales to the maximum, developing a specific customer base, etc.
• What makes the brand unique?
  Quality, innovation, price, service, clientele, network, customization, ecological commitment, customer experience, etc.
• What are its key strengths?
  Know-how, values, experience, expertise, technology, location, staff, etc.
• What are the current or potential barriers to achieving the brand’s goals?
  Lack of visibility, average customer service, high production costs, etc.
• What are the advantages and disadvantages related to the brand’s environment?
  Strong competition, economic crises, technological developments, market growth, etc.

Step 3 – Formulate the Unique Selling Proposition

• Focus on a Clear and Concise Structure An e-commerce brand’s USP must go straight to the point so that potential customers can understand it in just a few seconds and also be able to remember it.
• Align the USP with Branding and Marketing Strategy A Unique Selling Proposition (USP) must be in harmony with the brand’s identity and reflected in all marketing actions. Poor alignment can result in a gap between the promise made and the actual customer experience, thereby compromising credibility and conversion effectiveness.
• Ensure the Proposition is Realistic and in Line with Customer Experience The USP must be convincing but also realistic. The value proposition should be aligned with the actual customer experience.

Step 4 – Test and Refine the Brand’s Unique Selling Proposition 

A powerful USP must capture the target market’s attention and encourage conversions. Testing and refining it ensures maximum effectiveness and ensures it meets customer expectations.

Gather Customer Feedback There are many channels an e-commerce brand can use to collect and analyze customer feedback to better understand consumer behavior.

• Surveys and questionnaires
• Reviews and comments on the brand’s website, Google, Amazon, social media, etc.
• Feedback through customer service
• User testing and interviews

A/B Testing A/B Testing involves comparing two versions of a Unique Selling Proposition to determine which one generates the most engagement and conversions. This approach helps an e-commerce brand adjust its positioning and messaging according to its customers’ actual expectations. The ultimate goal is to stand out from the competition.
Examples:

• Test a written slogan against a visual slogan
• Reformulate the USP using different keywords, etc.

Step 5 – Communicate the E-Commerce Brand’s USP 

Once a brand has chosen its Unique Selling Proposition, it must communicate it as much as possible and in the best possible way through its customer touchpoints.

Which Channels to Focus On?

• Home page of the brand’s website
• Product and service pages
• Ads and social media
• Email marketing
• Packaging
• Customer service
  

Attention! There are many communication channels today. When communicating the USP, a brand must ensure consistency in its message across all communication channels it uses. Therefore, visuals, colors, tone, and storytelling are all variables a brand must decide on before communicating its Unique Selling Proposition.
A well-communicated USP significantly strengthens a brand’s differentiation and customer loyalty. This, in turn, leads to increased sales and revenue.

Examples of E-Commerce Brands with Strong Unique Selling Propositions

Some brands have succeeded in becoming references in their field. Sometimes the brand name is used as a common noun or verb in a sentence: “You should AirBnB when you get there.” Here are some examples of strong USPs that have helped certain brands dominate their markets.

→ Airbnb – “Belong Anywhere” Airbnb has won the hearts of travelers. How?

First, Airbnb plays on emotional connection. The brand invites travelers to feel at home wherever they go. It demonstrates that using its service is often “cheaper than a hotel.” Airbnb focuses on a more personal, convenient, and cozy experience—more of a “feeling of being at home.”

Second, Airbnb has developed a large and active community, which has helped build trust with both customers and potential customers.

Finally, the brand quickly gained global reach and local impact: wherever people desire, Airbnb encourages cultural exchange.

Airbnb’s Unique Selling Proposition goes beyond just “staying somewhere.” The brand aims to offer a true experience to its customers. It wants them to “feel at home,” as though they belong in the places they choose to visit.

→ Amazon – “Work Hard, Have Fun, Make History” Amazon’s USP is clear: customer focus above all. The brand aims to offer a shopping experience that is easier, cheaper, and faster than anywhere else.

Next, Amazon’s USP highlights its endless product selection: Amazon’s aisles are so numerous that its customers wouldn’t have enough time in a lifetime to explore them all. More options mean more price competitiveness!

Finally, its system is based on customer loyalty, notably with Prime. Amazon uses multiple strategies to retain and even increase its customer engagement rate to the maximum.

Amazon’s USP evolves with the brand’s progress. It is this constant agility that allows the brand to dominate the global e-commerce sector.
Indeed, a brand’s Unique Selling Proposition cannot remain static. It must evolve over time and with the strategic changes a brand makes. The USP is a living element of a marketing strategy that helps a brand differentiate itself from its competitors. Although it can sometimes be a long process, it is vital for an e-commerce brand to achieve its objectives in its sector.