No USP, No Business

I suspect that like a lot of people reading this blog, I monitor the start-up scene very closely. The reason for my start-up addiction is two-fold: I love entrepreneurial spirit and the bleeding edge, both in business and technology.

However there is nothing more frustrating than watching someone pour their life, soul and often savings into a company or product that is fundamentally flawed from the onset, because it has no USP (Unique Selling Point). Failure to differentiate your offering from your competitors is toxic to any business, so how do you determine your USP?

1.    How are you unique?

It may sound obvious but if your offering is the same as the next guy then you’re just getting lost in the crowd. List your competitors and analyse both their product and their business to identify the areas that set you apart.

When Tony Hsieh founded Zappos, the online shoe retailer (sold to Amazon for just short of $1b) he found his USP through customer service and a fanatical desire to put the customer first. Before this they were just another online shoe shop. In other words, your USP doesn't need to be associated with your product.

2.    So, what’s in it for the customer?

Grab a pen and paper and quickly list the top three benefits of owning your product or using your service.

Try to avoid the use of arbitrary generalisms such as ‘best price’. Get into the detail -- a prospect needs to know why using your product is good for them. If the benefits you list are unique and it’s something only you can offer then shout about it!

If you are struggling with listing the benefits to the customer then change tack and list your ambitions. This activity might not solve today’s USP problem but it can provide a decent roadmap to getting one.

3.    Proof of the pudding is in the eating!

Points one and two above should be based on factual information, so ask yourself are they really true?

When I call my mobile phone operator I am usually on hold for about 10 minutes and they continuously tell me “my call is important”; they also list customer service as a reason I should use them -- give me a break!

If you want your USPs to work for your business you have to live by them. Failure to deliver what you promise is a fast track to bankruptcy.

4.    Speak to your customers

I would argue that no-one knows your business better than your customers. Call them and get the gritty truth about your business. Ask them why they bought your product and what are the benefits to it - who knows you might even learn a thing or two!

5.    Be agile

Today’s killer USP might be tomorrow’s lame duck, or worse you might get your USP wrong. Be agile and prepared to make radical decisions. This gets harder the more successful you become so embrace the fact you are just starting out, as making mistakes or changing course is much easier.