Sounding just like every other business in your industry? Losing out to competitors on price, even though you know you’re worth it? These common challenges all come down to the same thing: not having a clear unique selling proposition (USP) – or, in other words, not knowing what makes you stand out.
Let’s have a look at what that actually means, why it matters, and how to define yours.
What is a USP?
A unique selling proposition (sometimes called a “unique selling point”) is about what sets you apart from your competition. And that can be anything: You can be the green local taxi company with lots of hybrid and electric cars and other environmentally friendly services. Or you can be a café that welcomes remote workers, with booths for meetings, and charging plugs at every table.
If you are the only one in your sector to offer that, excellent! You are one lucky entrepreneur, and you probably know it. But your USP doesn’t need to be truly unique; you just have to be the only one shouting about it.
So your unique selling proposition is all about what makes you different from your competitors and helps you stand out to your ideal clients.
Why do I need a USP?
Imagine you are at a networking event. When it comes to the usual round of introductions, it turns out that there are two photographers there. One says: “I take photos. Anything from weddings to headshots for your website, whatever you need.” But the other one says: “I specialise in food photography and work with restaurants, cafés, street food stalls and farmer’s markets.”
They might not get the job for your niece’s 10th birthday party. But they are memorable, more so than the other nondescript photographers. And they just established themselves as an expert in their area instead of doing a little bit of everything. So when you next talk to a restaurant or cafe owner who needs a new website with lots of photos of their fantastic food, who do you think of?
By defining your USP, you distinguish your small business from your competitors. It makes it easier for people to remember who you are and helps you target exactly the right people for your small business.
It also gives you an expert status. Your clients feel in good hands – they’re not just hiring anyone, but a specialist.
Additionally, with a clear USP in place, you will be able to:
- Attract more of your ideal clients who value your work, enabling you to charge what you’re worth.
- See a higher rate of repeat business and referrals.
- Build trust with your audience more quickly
- Answer that dreaded question, “So, what do you do?” without breaking a sweat
Check out these 8 great examples of USPs for your small business.
How do I define my USP?
1. Start with your ideal client
For many people I work with, the trigger to exploring their USP is linked to their ideal clients and their current relationship with them. This might look like experiencing challenges in attracting enough of these clients to grow your business in the way you’d hoped. Or, you might consistently find yourself losing out to cheaper competition. Sound familiar?
Alternatively, you might be successfully attracting your ideal client, but you’re spending so much time trying to win them over that other areas of your business are suffering. The idea of getting more repeat business and recommendations might appeal, but you just haven’t been able to make it happen.
So, before you do anything else, start by really thinking about your ideal client.
- Who do you want to do business with?
- Who will benefit most from your service or product?
- What do they need and want?
- How do they use your product or service?
- What problems or challenges do you help solve?
At this point, it is very important that you don’t describe who you can do business with but who you want to do business with.
Having established who this ideal client is, ask yourself: what unique aspect of your business is most likely to connect with them? This is an incredibly effective way to begin locking down what your USP can be.
2. Analyse your products and services
It might sound obvious, but do you really know what it is you are offering to your ideal clients? And not just the elevator pitch version!
I’ll use my own business as an example: I offer advice around marketing. But if I break that down, there are many benefits of working with me, like getting an outside perspective on your business. When you’ve got too close to it, and can’t see the forest for the trees, I’m here to help.
What this means for my ideal client is that I come in and identify opportunities they might not have picked up on. I can help them uncover blind spots that have been limiting their connections with their own customers or clients. My services benefit them by helping them see the bigger picture!
And, ultimately, the value I provide my ideal clients is in helping them to get unstuck when it comes to their marketing. Whether they have zero marketing knowledge and need help getting started, or they know a lot but have got bogged down in the details, I can help them get out of that metaphorical locked room.
So, with that in mind, have a closer look at what you are offering and what the benefits of that are for your customers. Then evaluate the benefits and get clear on what they mean for your target audience. How does your competitive advantage provide value for your customers? And again, focus on your ideal clients, the clients who benefit most from what makes you unique.
Also, don’t assume. If you don’t have enough customer feedback or aren’t sure what the benefits of working with or buying from you are, talk to your customers. Find some of your favourite clients and ask them why they chose you and what they like most about working with you.
Check out this post if it’s been a while since you sat down and assessed exactly what it is you’re selling!
3. Check out the competition
Question – who would your ideal clients go to if you didn’t exist? What would the solution to their problem be? You may, off the top of your head, know who your local competitors are. But you need to think about all of the other options available to your customers! Check out this blog post I wrote, dedicated to finding out who your actual competitors are.
Once you’re confident you know all of the other options, take some time to establish the following:
- How are they representing themselves online and offline?
- Do they communicate a slogan or a specific USP in their marketing material?
- Who is their ideal client?
- What do they offer and at what price?
This way you know what choice your potential customer is confronted with when looking for the service you and your competition offer. And you’ll spot gaps in the market you can use to set yourself apart. Sometimes simply having a USP – no matter what kind – can set you favourably apart from other businesses.
4. Define your values:
Finally, think about your values and strengths:
- What is important to you?
- How do you want to be perceived in the market?
- What do you want to stand for?
- Have you e.g. always been a promoter of a healthy lifestyle or saving the environment?
Then make sure your marketing, products and services reflect that – using your small business’s USP. For example, if you are a plumber and you have never been late in your whole life, for what it is worth, shout about it. People will love you for it.
A huge part of defining your USP is coming back to why you started your business in the first place. What was it that made you first set out to do what you’re doing? Remembering this can be instrumental in figuring out what makes your business unique!
Finally, pick your USP:
Look at all the information you have gathered and use it to help you get clear on your USP. This is the key to standing out from your competition!
So ask yourself:
- Is there anything that stands out about your business?
- Anything that is so particularly you that nobody else offers it to their clients?
- Something that your competition doesn’t seem to have covered yet?
- Or something you do much better than them?
Your USP is something you offer and your ideal clients value – but that none of your competitors is already shouting about. And always keep in mind: Your USP is as much about setting yourself apart from your competitors as it is about representing you and how you do business.
And this isn’t just a tick-box exercise. Remember that the best USP in the world is worth nothing if you don’t deliver on your promise!
KEEP READING
If you are interested in reading more about this topic, have a look at these:
8 Great Examples of USPs for Your Small Business
What’s a Marketing Strategy, Why Do I Need One & How Do I Get One?
Small Business Brand: What Is It, Why Do I Need One & How Do I Get One?
The 5-Step Guide to Find a USP for Your Small Business [Infographic]
