What do marketers really mean when they talk about businesses needing to differentiate themselves from their competitors? Is it really so important, especially for small businesses?
Listen up! Yes—differentiation is a must. But, there are probably more ways—and easier ways—to do it than you think.
Many business owners believe that truly standing out from the crowd requires that their business be highly unusual or wildly different from others, or that they have to carry products or provide services that absolutely, positively no one else does. It’s true: These things will set you apart, for a while at least. But, there are other ways to do it.
First of all, if you do—or can—offer something totally unique, by all means do it. Just be aware that your differentiating advantages may not last for long. New businesses or products emerge all the time, and many of those ideas come from existing concepts.
In fact, two University of Chicago researchers found that the vast majority of small businesses are not going to innovate, but instead will bring an existing service to an existing customer base. This means that you and a lot of other businesses are offering similar things. The real question here is not just what you offer but rather, do customers see your business as the same, similar or different? The answer depends even more on how you do what you do—not just what you do.
This is why your business’s brand is so critical; it can be what differentiates you with customers. Your brand is made up of the collection of experiences your customers have with your business, from how they are welcomed to how their problems are solved to the ease of the purchase/checkout process. And not only just the experiences themselves but the perceptions customers carry with them and share with others—positive or negative.
A great article on Staples.com talks about the ‘essence’ of small business brands and the power of clear and effective brand positioning. Some of the key points here are:
- Why businesses need to define—and keep—their brand promise(s).
- The importance of honesty and authenticity in your brand. This one is a non-negotiable.
- Learning how to connect your brand values and characteristics with those of your customers.
Read the entire article here.
One of the most effective ways for small businesses to differentiate themselves with customers is customer service. In fact, this is an area where small businesses often have an advantage over bigger ones. And by ‘customer service,’ we’re not talking about a job title or a department. Customer service, in a nutshell, is everyone’s job in every business. It’s how you treat customers; how responsive you are to their needs.
There’s no shortage of unhappy customers reporting bad or disappointing customer service experiences online—it seems to be an epidemic. This makes the opportunity for businesses willing to go ‘all in’ on customer service that much greater. Talk about a differentiator, not to mention a loyalty builder. Customers-for-life are born from outstanding—and unexpected—customer service.
Image courtesy of David Castillo Dominici / FreeDigitalPhotos.net