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Defining your unique selling proposition

Your unique selling point (USP) helps create competitive advantage by explaining why a customer would choose your business over another. Find out which USPs may be relevant to your business.

3 minute read

As a new business, it’s useful to stand out so customers not only notice you, but also so they select you over the immediate competition. One way to do this is by ensuring potential customers understand your ‘USP’ (what makes your product or service different and better).

You’re probably already familiar with businesses that say they’re the cheapest or fastest or have the largest range. But what makes your business special.

To help develop your USP, list all the things you offer customers in these four main USP categories.

1. Business USPs

These USPs are based on how you run your business and the processes, products and services you offer, like:

• outstanding customer service
• extended warranties or guarantees
• ability to transact online (order, track, pay)
• delivery speed
• being an authorised supplier.

It’s also possible that social and environmental parts of your business will become critical USP’s. This could mean using organic or recycled materials, having clear policies on reducing wastage, sponsoring charities, or focusing on helping to build a more sustainable world.

2. Product and service USPs

If you’re lucky enough to have invented something totally new, then you should automatically have some form of USP. But chances are your business is the same as or a variation of others in an existing industry. 

To help develop product and service USPs, you could try:

• securing exclusive agreements with suppliers
• offering products or services that competitors don’t
• offering a longer guarantee
• providing longer after-sales service
• amending, adding, altering, or improving what already exists.

The ultimate product or service USP is something that only your business can deliver. That doesn’t need to be New Zealand-wide and it doesn’t need to be new or innovative. If you’re the only bakery in town, you’re the only bakery in town.

 3. Business collaboration USPs

Small businesses often work together to not only find customers but also to share resources. A good example is a builder who uses a personal network of other tradies (plumbers, electricians, tilers etc.) to refer work to each other. The USP is the relationship.

As a new business, think about whether you can:

• do joint ventures with other businesses to win work
• join industry groups to identify decision makers
• partner with buying or marketing groups.

Collaboration can also include your suppliers. If you market to them and get to understand their business, they may offer you better terms, promotional material, training for staff, faster delivery, better returns policy, and early notification of specials or discounts that aren’t offered to your competitors.

4. Marketing USPs

Some businesses manage to work their way to the top of their industry initially by being unique and then by being the dominant brand. But you don’t need to be a global player with a massive advertising budget to be top of mind for customers in your street, suburb, town, city, or region.

Marketing USPs can be:

• a recognisable logo and brand
• better qualifications and experience
• a valued customer loyalty programme
• online ranking and traffic to your website
• customer word of mouth
• your lead generation process.

Anything that drives new customers to your business and keeps them there can be a marketing USP, including being active in social media and building a profile as the expert in your industry.

How many USPs should you have?

It’s useful to have as many as possible, but rather than a long list, customers will probably only remember two or three. To help decide which USP you should promote the most, ask prospective customers what they value and what would make them switch to your business.

Protect your USPs

If you have developed a USP, it might be worth protecting any intellectual property (IP) with copyright, patents, designs, trademarks, or trade secrets. The NZ Intellectual Property Office is a good place to get an overview of what you can and can’t protect. Seek professional advice if you do intend to go down the IP path.

You can also create barriers to entry to make it harder for a business to copy your USP such as owning your location, a long lease (to prevent others moving you on), a license or contract of supply, or having brilliant and loyal employees.

Developing your USP can take time but once you have one (or many) that work, integrate the messaging into all your marketing to remind customers why you’re the best at what you do.

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This material is for general information purposes only and does not constitute, and is not intended and is not intended as, personalised financial, legal or tax advice. BNZ strongly recommends you seek advice specific to your personal financial, legal or tax situation from a qualified adviser. Neither BNZ nor any person involved in the material accepts any liability for any direct or indirect loss or damage arising out of the use of, or reliance on, all or any part of the content.