Having a USP that sets you apart from competitors is key to success in an ever-growing online business landscape. By prominently featuring your USPs, you are able to switch the customer’s focus to the value you provide rather than the price alone when they compare you with competitors. But what is your USP, and how do you figure out how to wield it to get your customers to buy from you?
What Is a Business USP?
USP stands for a unique selling point. It is the thing you do differently from other businesses in your industry or niche. Sometimes USPs are big, like freebies or additional services, sometimes they are small, like free shipping. It doesn’t matter how much difference a USP makes; it just matters that your customers see it as valuable.
For example, not so long ago, ASOS offered free next day delivery on all orders over £100. ASOS targets 20-somethings, and its competitors were brands like She-in, Pretty Little Thing, Missguided, etc. While free next day delivery may seem like a small USP, it really set ASOS apart from its competitors. It meant that people would order a large amount of clothing, so they had new clothes to wear for their plans on the weekend or short notice nights out. Because the threshold for free next day delivery was £100, people would order a few items of clothing and may end up keeping more than they intended to. This USP was really valuable to its target market, who love the convenience and don’t like waiting for their online shopping. While they no longer offer free next day delivery, ASOS were able to grow their following, and in turn, snag deals with fashion brands. They also were able to then convert regular customers to their Premier Delivery membership when they started charging for next day delivery. By August 2018, they had 1.3 million customers purchase their Premier Membership.
How Do I Find My Business USP?
Your USP could be any number of things that you do differently from the industry norm. Write down a list of things that you think you do differently from other companies, no matter how small. It could be things like:
- More diversity in your clothing models (featuring models of different races, religions, disabilities, and sizes)
- Customisation options
- Delivery or shipping options
- Flexible payment
- Add ons (like jewellery engraving, monogramming, clothing embroidery, etc.)
- Specialisation in a certain customer type or service
- Additional support
- Guarantees
- Relatability (you are a member of your target market)
Once you have written down what USPs you already have, start thinking about other USPs you can or want to provide. Take a look at your brand narrative and find out if you are living up to your values as much as you can. If one of your brand values is sustainability, consider what you could do to ensure you are more sustainable than most of your competitors. You may look into recyclable packaging or source materials from local suppliers; you may even pledge to plant a tree for every order over a certain amount.
A great way to find out what you can offer that would set you apart from competitors is to read online reviews about large competitors and see what customers are complaining about. What do they wish competitors offered, or where are competitors failing. You should also speak to people in your target market and find out what would take their experience from good to amazing.
Let’s look at someone like Ikea. They offer good value, minimalist flat-pack furniture. Most people have owned a piece of Ikea furniture at some point. If you are starting a business selling flat-pack furniture, you may not be able to offer furniture for the low price that Ikea does. They’re a huge chain and can offer those prices because of their large buying power and large margins on food and drink items in their café. But, one of Ikea’s pain points is that people hate assembling the furniture. The guides are confusing, and many relationships have ended over Ikea furniture. They have partnered with TaskRabbit to try and address that pain point, but people would happily pay extra to avoid spending their weekend assembling furniture. If you came into the market offering flat-pack furniture with free delivery and assembly over a certain order value, people would throw money at you. You are never going to compete with Ikea on their price point, but you can compete with them on the value you offer your customers.
How Do I Promote My Business USP?
Your business USPs should feature heavily in your promotional activity. It should be very clear in your website copy and on sales pages. Potential customers should also be able to look at your social media pages and easily tell how you are different from your competitors.
When you are making marketing decisions, you should have your brand narrative and your small business USPs at the heart of your choices. Your customers need to know exactly what sets you apart from competitors and why they should justify spending more with you. If you don’t make that very clear, you will constantly hear, “No thanks, I can get it cheaper on Amazon.”
Remember, you can pivot and change your USPs in the future to keep up with trends or logistical issues. When ASOS first started, their USP was that you could find outfits you saw on TV or in movies (or at least replicas or inspired by outfits). Then their USP was the free next day delivery. Now their USP is that they have a wide selection of brand name and their own brand clothing, accessories, beauty products, and even homeware.