Do you know your customer’s Unique Buying Reason?
Business Watcher with Professor Yannick Dillen
By Yannick Dillen
Professor of Management Practice
When you ask an entrepreneur about the USP of their products, you're likely to receive a precise response. The concept of 'Unique Selling Proposition' – or also ‘Unique Selling Point’ – is well-known in the business world. But what exactly sets your product apart from competitors? Is it cutting-edge technology, unparalleled user experience, or overall product quality? The spectrum of possible answers is broad. That’s why entrepreneurs should not solely focus on the USP. Maybe even more important is the ‘Unique Buying Reason’ (UBR).
What is the problem with USPs?
The main issue with USPs is their company-centric perspective. Companies often overlook the reasons why individuals choose to purchase their products or services. There may be a difference between the USP and the actual reasons why consumers buy a product. From the customer's point of view, the USP has little relevance.
Do you know your customer’s Unique Buying Reason?
In this video, Professor Yannick Dillen explains the difference between a USP (Unique Selling Proposition) and a UBR (Unique Buying Reason) - and why it's so important for entrepreneurs to know their customers' UBRs.
What is a typical customer’s point of view?
Customers typically think in terms of 'Unique Buying Reasons' (UBRs). Which underlying factors motivate them to buy a product or service? While many companies excel at pinpointing their product's uniqueness, fewer effectively communicate why customers buy from them.
Can you give an example of the difference between a USP and a UBR?
A good example to explain the difference between a USP and a UBR is Gillette. This brand is great in showing the technical superiority of its razors over those of competitors. Yet, if you were to ask a Gillette customer why they purchase the products, chances are they wouldn't mention the technical features. More likely, they would cite superior performance – and how Gillette simply does the job better than other brands.
Through their USPs, companies like Gillette have established unique buying reasons for their clients. In Gillette's case, it's likely the perception of superior quality. "It just gives a great shave," is a common response when asked about the unique buying reason for a Gillette razor.
What is your advice for entrepreneurs on this topic?
Every company – whether start-up, scale-up or seasoned player – must recognise the distinction between USP and UBR. While both are vital, conversing in the language of the customer requires a focus on UBRs. Avoid overly technical or dull explanations. Instead, build your communication on how customers perceive your product and try to speak their language.