Discover the Unique Selling Proposition of Your Business

What is a USP?

A USP is the unique quality that helps your business stand out from the competition, setting it apart from potentially thousands of rivals. It’s the distinguishing factor that earns you repeat business as your customers return again and again for your products or services.

The concept of a USP was introduced by Rosser Reeves of the legendary Ted Bates advertising agency in the 1940s. According to Reeves, a USP is what gives marketing campaigns an extra jolt and makes customers notice and connect with the product.

Without a USP, your business is like a ship that has lost its rudder — the USP steers all your operations on the right path. Research from 6sense shows that 69 percent of the purchasing process happens before B2B buyers ever talk to sales, and 81 percent already have a preferred vendor in mind by the time they do. That makes it crucial for your USP to stand out early and clearly demonstrate why you’re the superior choice.

How can you determine your business’s USP?

Take the following steps to discover your business’s USP:

1. Gather your team for brainstorming.

Creating a USP isn’t a solo project — it’s a team effort. Invite people from across the company, including customer support, marketing, sales, finance, IT, product development and HR. Each department sees the business from a different angle, and those perspectives will help you find what truly sets you apart.

Start the session by asking, “What makes our business stand out from the competition?” At first, you might hear broad answers like “Our product quality is better,” “We provide excellent customer service” or “We have more experience.” That’s perfectly normal in the early stages. Capture everything; no idea is too vague or obvious at this point.

As the discussion continues, you’ll start spotting patterns and shaping more concrete ideas. For example, customer support may recall feedback about fast response times, while product development might highlight unique product features competitors can’t match. Keep notes of these specifics, as they’ll be valuable as you refine your USP.

2. Identify your target audience.

One of the biggest mistakes businesses make is promoting products or services without really knowing who they’re talking to. Before you can sell to your customers, you need to identify them. Look at characteristics like age, location, gender, income level and occupation, but don’t stop there.

Go deeper by grouping people into customer personas — semi-fictional profiles that go beyond capturing demographics to pinpoint needs, goals and challenges. For example, one persona might be a budget-conscious shopper who looks for deals, while another prioritizes premium quality and service.

The more clearly you define your target audience, the easier it is to tailor your USP to resonate with them. Understanding what drives their decisions, whether it’s price, convenience, innovation or trust, is especially important as consumer behavior evolves.

3. Research and analyze your competitors.

This step is all about market research. Before you can figure out what makes your product unique, you need to understand what’s already available to your target audience. Start by listing your direct competitors, then do an in-depth analysis of each one. Look at the products they offer, how they position them and how they reach customers. Review their websites, social media pages and other marketing materials.

These efforts can pay off in valuable insights. Crayon’s 2025 State of Competitive Intelligence Report found that sellers face direct competition in 68 percent of deals, which means you need every possible edge to stand out. Knowing what your competitors do well — and where they fall short — helps you sharpen your USP so customers see a clear reason to choose you. Additionally, the U.S. Small Business Administration notes that competitive analysis is key to defining a lasting advantage and creating sustainable revenue.

Try to build a clear picture of your competitors’ strengths and weaknesses. The better you understand what you’re up against, the easier it is to highlight what sets your business apart.

4. Identify and list your organization’s strengths.

Think about what your business does best. Maybe your product is built with better materials, your pricing is more competitive or your ordering process is quicker and easier than the competition’s. Perhaps customers rave about your free delivery or an extra service you include at no cost.

Whatever those strengths are, write them down and look for patterns. These are the qualities that make your business stand out, and they’re the building blocks of your USP. To make sure you’re not just guessing, ask your customers what they value most about working with you. Customer feedback from reviews, testimonials and surveys often highlights strengths you might overlook. 

5. Acknowledge your weaknesses.

When defining your business’s USP, knowing where you fall short matters just as much as knowing your strengths. Are your prices higher than those of competitors? Are your delivery options limited? These potential weaknesses don’t take away from your USP; it just shows you what not to emphasize. Being clear about weaknesses helps you zero in on the strengths that truly set your business apart.

6. Define what makes you unique.

This is the crux of the entire exercise: pulling everything together to pinpoint what sets your business apart. Look at the insights you gathered from your team, the patterns in your target audience, your competitors’ positioning and your own strengths and weaknesses.

Your USP should highlight the element that makes your brand distinct and resonates with the customers you want to reach. It doesn’t have to be something absolutely no one else offers; often it’s about presenting your advantage in a way that feels clearer, more compelling or more relevant than your competitors. Once you find that defining quality and put it into words, you’ve identified your USP.

7. Craft your USP statement.

Once you’ve uncovered your USP, put it into words. Aim for a clear, concise statement that captures your advantage without buzzwords or jargon. The goal is to make it easy for customers to instantly understand why they should choose you over a competitor.

Think of your USP statement as your brand’s personality distilled into one line — the reason people are willing to spend their hard-earned money with you. Keep it simple, genuine and consistent, and use it across all your branding and marketing channels so your audience hears the same message everywhere they interact with your business.

>>>Download business.com’s free USP development worksheet.

Metrics to track to ensure your USP is driving results

Once you’ve defined your USP, you’ll want to know if it’s resonating with customers. The easiest way to do that is by keeping an eye on a few key performance indicators (KPIs):

• Brand recognition: Are more people recalling or recognizing your brand? Simple brand surveys or social listening can help you track this.
• Customer engagement: Look at satisfaction, repeat purchases and advocacy (like referrals or good customer reviews) to see if people are connecting with your message.
• Conversion rates: Are more visitors taking the actions you want, e.g., signing up, requesting demos or making purchases? A clear USP should boost these numbers.
• Customer acquisition cost (CAC): Over time, a strong USP makes it easier (and cheaper) to attract new customers because your value is clear.

You don’t need a complicated dashboard to get started; even simple tracking can reveal whether your USP is cutting through the noise. If you see positive movement in these areas, you’ll know your message is working.

Real-world USP examples

Below are examples from companies across industries, from global giants to niche players, that show how brands have used their USPs to capture attention, build loyalty and stand apart from the competition.

Canva: “Empowering the world to design”

Canva’s USP highlights simplicity and accessibility, allowing anyone to create custom designs without steep learning curves. This clear promise sets Canva apart in a SaaS space crowded with complex tools.

Nike: “If you have a body, you are an athlete.”

Nike’s inclusive message taps into diversity and accessibility, forging an emotional connection with a broad range of customers and reinforcing the brand’s identity beyond sportswear.

Death Wish Coffee: “We live to rebel against blah beans”

This bold, funny stance resonates with a specific crowd and proves that a USP built on personality can work. By claiming the title of the #1 organic and fair trade coffee in the U.S., Death Wish created a loyal following around its rebellious image.

Tesla: Innovation and sustainability

Tesla’s USP lies in cutting-edge technology paired with zero emissions in a sustainable business model. This positioning captures both innovation enthusiasts and eco-conscious consumers, solidifying Tesla as a leader in the shift toward sustainable transportation.

Avis: “When you’re only No. 2, you try harder. Or else.”

Avis famously turned a weakness into a strength with this line. It conveyed humility, determination and customer focus in just six words. Today, the company emphasizes reliability with a new USP: “Our only plan is to make sure you keep yours.”

Starbucks: “To inspire and nurture the human spirit — one person, one cup and one neighborhood at a time.”

Starbucks isn’t the cheapest or most luxurious coffee, but it positioned itself as the brand that personalizes every drink and creates a community experience, fueling global growth.

BMW: “The Ultimate Driving Machine”

Straightforward and memorable, this USP communicates luxury, performance and engineering excellence. It tells customers exactly why BMW is worth the premium price.

Shopify: “The all-in-one commerce platform to start, run, and grow your business”

Shopify’s USP makes entrepreneurship accessible. By offering every tool needed to launch and grow an online store, Shopify quickly became the go-to e-commerce platform worldwide.

FedEx: “When it absolutely, positively has to be there overnight”

Introduced in 1978, this promise of reliability helped FedEx stand out at a time when overnight shipping wasn’t a given. While the company has since introduced a new global tagline — “Where now meets next” — the reputation built by its original slogan still defines how customers think about FedEx today.

The ROI of a strong USP: What it means for your business

A well-defined USP doesn’t just sound good on paper — it drives real results. When customers clearly understand why you’re different, they’re more likely to choose you, stay loyal and recommend your brand to others. That translates into:

• Revenue growth: A clear USP helps turn interest into increased sales by showing customers exactly why your product or service is worth it.
• Stronger market position: Differentiation gives you an edge in competitive markets, making it harder for rivals to crowd you out.
• Customer loyalty: When people connect with your USP, you foster customer loyalty. They’re more likely to come back, spend more and stick with you over time.

In short, your USP is more than a tagline; it’s a driver of growth and long-term business success.

Jamie Johnson contributed to this article.