- December 10, 2013
- Posted by: Madrigal Admin
- Category: Business Info Blog
Differentiation is how you give your customers better value and more benefits than your competitors. The first question we ask business owners when we are writing about their businesses is how are you different from your competitors.
To successfully differentiate your product or service you need to clearly explain to your customers the extra value you give! Differentiation closely equates to competitive advantage; your unique selling proposition; and your value proposition. There are various methods to differentiate your business from your competitors.
Accessibility
Provide localised and accessible products and services.
Brand
Provide intangible benefits that give people a sense of self or trust (focus on outcomes).
Customisation
Customise your product to customers’ needs, wants or requirements.
Guarantees
Help reduce your customers’ risks in using your services and products by providing guarantees, warranties or indemnities.
Innovation
Be the first to get a product onto the market.
Quality advantage
Make your product or service unique in a way that it cannot be copied – ie professional services, expertise, patents, brand.
Speed
Deliver your product faster than your competitors.
Service
Offer better customer and product service than your competitors.
Price
Offer value not cheapness. Try to avoid competing solely on price. Low price often is perceived as lower quality provided by a less-stable business.
However, you need to be selective – you can’t be all things to all customers.