Unique value, added value, unique selling point – all of these terms mean one and the same thing: the unique selling proposition or “USP” for short. But what exactly is behind this term? How do you find your USP and what does it have to do with successful customer acquisition? We will answer these and many other questions in this article.
- Definition: What is the USP?
- Why is the USP important?
- Importance of the USP for freelancers
- Characteristics of a successful unique selling proposition
- What is suitable for a USP?
- How freelancers identify their personal USP
- Examples of freelancing USPs: How the best of the best do it
- Limits of the USP
What is a Unique Selling Proposition? Definition of USP
The marketing term was coined by Rosser Reeves in the 1940s. He defined it as a unique sales promise that clearly and succinctly highlights the benefits of a product, making it stand out from the competition’s products.
The original marketing principle can also be applied to the marketing of services or even companies. With the USP, established companies, start-ups or even freelancing newcomers can set themselves apart from the competition.
In summary: The USP describes the unique sales promise of a product or service, which is intended to convince potential customers of your offer and not switch to the competition. The USP should therefore help entrepreneurs and freelancers to secure their long-term success.
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Why is the USP important?
If you want to assert yourself within your target group, especially with newly introduced products, you cannot avoid a USP. If you look at an example from a drugstore, where there are numerous products with only different packaging (so-called substitute goods), the customer usually decides based on price or arbitrariness. However, if the customer identifies a unique benefit promise, the chance that he or she will choose such a product increases.
In order to successfully differentiate yourself, it is necessary to communicate your unique selling point to the customer in the form of unique content. It is important to note, however, that this is not a basic or additional benefit, but an actual unique selling point.
Difference between basic benefit, additional benefit, and USP
In order to find the right unique selling point for you, you should first know the difference between the “basic benefit”, “additional benefit” and the actual USP of your offer:
- Basic benefit: Basic utility refers to the basic function or main purpose of a product or service. Let’s take clothing as an example. It covers and warms the body – but other items of clothing can do that too. But that doesn’t make a company stand out from the market.
- Additional benefit: Additional benefits are additional features or advantages that go beyond the basic benefits and make the product or service more attractive. These can be, for example, additional functions, guarantees or services that offer the customer added value. To stay with our example: A company makes clothing from sustainable materials.
- USP (Unique Selling Proposition): In contrast to the basic or additional benefit, the USP is the added value that distinguishes your own offer from that of the competition. For example, if a brand wants to stand out from the market through environmental protection, sustainable clothing from the potential customer’s region would be the unique selling point that allows the company to stand out from similar products.
Professional marketing identifies three types of user benefits:
| Type of benefit | Example |
|---|---|
| Basic benefit | Clothes |
| Additional benefit | Clothes are cheaper than those of the competition |
| USP | Clothing is made from sustainable materials and comes from the target audience’s region |
Importance of the USP for freelancers
At the first German freelancer conference Freelance Unlocked, Jon Younger (HR professional, author and freelance economy expert) asked the approximately 500 participants:
“How many of you could quickly and clearly describe what makes you and your service special?”
Jon Younger
HR Tech Expert, Author and Consultant
Roughly translated: “How many of you could quickly and clearly describe what makes you and your offer special?” (Source: Freelance Unlocked: Where is the freelance economy heading?)
Only a third of those present knew the answer to this seemingly simple question. In day-to-day business, a lack of a USP can have dire consequences. Without a unique selling point, freelancers lose out compared to those who are aware of their unique benefits – even more so than ever before in the age of AI.
The skill set alone is not enough for a unique selling point
Freelancing skills are in high demand, but skills and abilities are also interchangeable in saturated markets. This objective interchangeability of skills becomes clear in a recruiting example: Two recruiters with similar skills are very knowledgeable about recruiting. If a potential client has the choice between the two and both charge the same price, they will probably choose the freelancers who clearly communicates their USP .
In concrete terms, this means that freelancers can certainly stand out from the market with special and (currently) rare skills. However, this alone is not enough to create unique customer benefits and to successfully assert themselves against other freelancers in the long term.
The declining demand for skilled workers requires a strong USP
Currently, the job market is declining even for IT specialists. This is reported by the job portal Indeed, among others. In mid-2024, companies are investing significantly less in recruiting IT specialists than was the case in 2022.
Indeed has seen a significant decline in demand, particularly in the “Data Analytics & Information Management” and “Software Development” professions. For example, the Indeed Labor Market Index for software developers was just under 170 at the beginning of 2022 , but by June 2024 this figure had shrunk to 83. Compared to the beginning of 2024, this represents an overall decline of 22.8%.
Artificial intelligence (AI) could be to blame (among other things). According to the study “ Who is replacing AI? ”, demand for copywriting and coding skills fell by 21% within the first eight months after its introduction due to ChatGPT.
For the study, over 1.3 million job offers from a leading freelancer platform were examined. As the results show, freelancers must adapt their skill set accordingly and specialize in using AI efficiently or even developing it in order to be the perfect choice for potential customers even in the age of ChatGPT.
However, the clever use of AI in everyday freelancing also offers potential – or can even be a unique selling point. Repetitive tasks can be processed drastically faster, such as responding to customer emails or parts of the accounting. This means that freelancers are already saving numerous, valuable working hours.
What are the characteristics of a successful unique selling point?
In order to achieve an economic advantage on the market and to be identified as a real unique selling point, the USP must meet certain requirements.
- Uniqueness: The USP should be a unique selling point that sets the product or service apart from the competition.
- Clarity and brevity: A good USP should be clear, concise and easy to remember.
- Transparency towards customers: The USP should be credible and actually offer the customer the promised benefits.
- Defensibility: The unique selling proposition should not be easily copied by the competition. You also have to be able to honestly represent your USP. For example, if a company falsely claims to produce sustainably, this is greenwashing.
- Rational and psychographic features: The USP can contain both emotional and rational elements to excite customers while communicating concrete benefits.
- Target group orientation: The USP must also have a demonstrable benefit for the customers and meet their needs and requirements for a product or service as best as possible. Otherwise, it loses relevance.
- Relevance: It is important to regularly review the USP and adapt it if necessary to ensure that it remains relevant and effective. If it does not bring the desired success, a new USP must be found.
- Profitability: A USP that causes enormous costs and therefore cannot be economically placed in an offer misses its target. It must therefore be integrated into the service in such a way that a relevant margin is realized for the company when it is sold.
What is suitable for a USP?
The unique selling proposition can be not only at the product level. The brand or philosophy of a company can also represent a unique selling point. What exactly the USP ultimately looks like always depends on the company or freelancer themselves.
For example, some focus on innovation, while for others a high price is justified by the quality of a service. Other USPs include, for example, particularly fast technical implementation of an IT project or a special support channel, for example via social media.
In addition, extremely good service can also represent a USP. Anyone who has a special feel for customer needs in addition to technical know-how can position themselves well on the market and use this strategy for their personal branding. When developing a USP, you should take a closer look at the following areas:
- Customer needs: What added value do my customers need? For example, if they are looking for a way to save time, the USP can be used here.
- Company goals: What values and goals does your brand have? If you have specific sustainability goals, you should definitely use this point for your USP.
- Production or value creation: Focusing on the individual components of the offer is also a good way to find your own USP. For example, in exclusive, sustainable or very inexpensive materials.
- Special target groups: Positioning can take place in the B2B environment on the one hand and in the B2C environment on the other. From there, companies focus on special target groups. These could be family businesses (B2B) or young people (B2C).
How do freelancers identify their personal USP?
It is not always easy to identify your unique selling proposition. This is partly because they are marketing their skills and personality rather than a highly innovative product that is manufactured in a special way. However, by using the following checklist and answering the following questions, freelancers can quickly identify their USP:
- Identify strengths: Freelancers should focus on what they do best. This includes special skills, experience and successfully completed projects. For example, designers could focus on a unique style that others don’t master.
- Analyze your target group: When analyzing your target group, you need to identify the problems of your target group and offer suitable solutions. For example, are there new compliance guidelines that you can specialize in as a freelance lawyer? The USP should be tailored precisely to the needs of your customers.
- Competitive analysis: What do other freelancers in the same industry offer? Are there gaps in the offering that you can possibly fill with your own skills? By answering these questions, you can find a USP that will allow you to clearly differentiate your offering from the market.
- Formulate a clear message: The USP should be formulated actively, clearly and strongly so that it is memorable for the target group. Instead of saying: “I am a web designer”, it is much better to say: “I create high-converting websites with a clear focus on usability and SEO”.
- Validate and optimize: Freelancers should definitely test their new USP with the target group and adapt it if necessary. The market is constantly changing and the competition is also evolving. To ensure that customer acquisition does not become a challenge, you should remain flexible and adapt your skills to market requirements.
Examples of freelancing USPs: How the best of the best do it
Apple
Apple is probably one of the best-known examples of a USP in the field of innovation. Although early precursors to today’s smartphones existed in the mid-80s, it was Steve Jobs who introduced his revolutionary iPhone in San Francisco in 2007.
The mobile phone with touchscreen, cellular connection, (at the time) high storage capacity and the option to take photos and play music at the same time quickly conquered the market.
But the competition didn’t take long to arrive – more smartphones from other manufacturers came onto the market. Nevertheless, Apple still stands out from its competitors to this day. But how is that possible when there are now so many substitute products?
Apple relies on a combination of different unique selling points. On the one hand, the focus is still on innovation. On the other hand, the company manages to create a unique customer experience with its Apple ecosystem.
TIPFreelancers can also take advantage of Apple’s strategy by staying up to date in their field of expertise, making them one of the innovators in their industry.
Of all the search engines that can be used worldwide, Google has over 80% of the market share . The search engine giant is celebrating its success for a good reason. Like Apple, Google combines several USPs to clearly distinguish itself from its competitors in the market: personalized services meet superior search technology .
Google has done its job so well that most webmasters on the Internet are fighting for the best positions in the search results. Over time, this endeavor has even developed into separate professions, such as SEO Consultant.
What freelancers can learn from Google’s strategy: Similar to the most popular search engines, freelance experts can also make sure to always offer problem-centered solutions. For example, through customized service offerings or a broad repertoire of skills .
ArmedAngels
You don’t have to develop a new type of smartphone or create a completely new search engine to outdo your competition. As the fashion brand “ArmedAngels” proves, it is enough to focus entirely on a single USP: sustainability , across the entire value chain. Transparency is the main focus here. Customers can always find out in the online shop how, where, with what and why the clothing is made.
Freelancers can develop their USP in the same way: Focus on the essentials , but with transparency . For example, by not only listing your skills, but also providing references . This works on your own homepage or your profile on a freelancing portal such as freelancermap.
Sixt
Sixt uses a number of USPs. Freelancers can also use a few of these for their self-marketing. For example, the modern car rental company uses aggressive marketing strategies, coupled with a pinch of humor. This alone has anchored Sixt in the minds of its target group and clearly sets it apart from other car rental companies.
The next point is also interesting for self-employed individuals: customer orientation and service. Sixt scores points with its customers with quick processing of vehicle pick-up and return, flexible rental options based on the modular principle (with or without additional kilometers, vehicle of choice, etc.) and excellent support services.
If freelancers prioritize customer relationships, they can use positive reviews for self-marketing , for example by using them on their own homepage or social media profiles.
Limits of the USP
The USP is an important parameter, especially when entering the market. As long as the competition does not offer a comparable USP, it is a success factor for freelancers. Over time, however, it can happen that competing products offer the same USP in combination with a cheaper price. In this case, it may be necessary to combine several unique selling points in parallel, or even to redefine the USP in order to remain on the market in the long term.
