Explain the importance of a Unique Selling Point (USP) to a business

Define USP- A feature or characteristic of a product that differentiates it from other similar products. It gives a business a competitive advantage and it distinguishes the brand over others. Allows business to charge a premium price as it is not a product that you can buy everywhere. Encourages customer loyalty and can result in repeat purchases. Repeat purchases can result in an increase in revenue which can lead to an increase in profit. Profit can be spent on research and development which can later be used to differentiate the product even further to suit the needs of the businesses consumers. It can also lead to the product becoming more price inelastic which means that the demand for that specific product is not as sensitive to the change in price.