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Building strong products by differentiatingAs a business owner, you have probably been asked the question on more than one occasion, "So what makes you different?"What they are wanting to know is; what sets you apart from your competitors.So what is it? Is it your products? Your service?Are you unique?Or, like many people, are you just not sure if you are all that different after all.In order for your business to succeed at gaining and retaining customers, you are going to need to differentiate. In business terms, to differentiate (also known as USP or Unique Selling Proposition, competitive advantage or value proposition) means to create a benefit that customers perceive as being of greater value to them than what they can get elsewhere.This does not just mean that you are different, the customer has to actually take note of that difference and feel that the difference will somehow fit their need better.
Differentiation is valuable in all stages of a business life cycle.As you start your business and your business begins to grow, differentiation is what is going to attract new customers to you.Once you have reached a stage of momentum, differentiation is what will allow you to charge a higher price because you are delivering more value to your customers. Differentiation of your business can occur in any of the following four general categories: Depending on the type of business you are in will determine how much you are able to differentiate your product or service offering.For example, if you are in a highly regulated industry like electricians, your options may be limited.Another type of market, however, may offer many different possibilities for differentiating your product or service. The key to successful differentiation is to know your customers.Know them, know what they like, what interests them, what motivates them, and what it is they want.Talk to them often and get regular feedback in order to know what they need most and to be able to offer it.It is important for the success of your business that you do this before your competitors. Once you know what your customers want, make your product stand out.You want to create a product or service that is exceptional in one or more ways.For example, you can make one that lasts longer, is better than the competition, is easier to use, or is safer.You can also be unique in that your product is new or the first being offered in your location or field.Your product may offer lots of features, options, unusual combinations, or solve a problem for a customer in a way that nobody else does.If you are a small business, you may be able to customize special orders much more easily than big, mass-market competitors. The key to differentiating your product or service is to make your product unique in some way.This will help strengthen your products' appeal to your customer. |
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