6 simple steps to differentiate yourself from competition
If you want to succeed, you need to stand out from competition. Almost all business owners know that; however only few of them really do it. The common reason why they don’t differentiate their offers is because they don’t know how to do it. In this article, you will find a complete process of 6 simple steps to help you create a competitive advantage that will make you different from your competitors:
1. Know your target market: This is the starting point of any business. Your business will always depend on your customers. You need to know them as much as you can. Start by knowing who they are (age, gender, geographic location...Etc.) but also their buying habits, their problems and needs, their values and common traits. See where they go, with whom they spend most time, who they go to in order to solve their problems. Try to hang out with them: listen to them, observe their behaviors and understand their needs.
The more you know about your customers the better is!
2. Know your competition: Your competitors must be your first teaching source. See what they are offering, how they are offering it and what do customers think about their offers. You will be amazed by how valuable this information is. Do some research, visit your competitor’s websites, subscribe for their newsletters and get their brochures and all their free resources. Analyze their offers: what is working and what is not; what are their strengths and weaknesses. Try to understand how they are serving the costumers’ need (which you have already identified in step1).
3. Know yourself: This is key in the process especially when you offer a service. Keep in mind that you are unique: you need to identify your unique skills, strengths, passions and expertise. Now that you know what your customers are looking for and what is already being offered by your competitors, all you need to do is to fill what is missing by a combination of the customer’s needs and your UNIQUE product/service.
4. Choose a differentiation strategy: there are several strategies that one can choose. Here again, you need to know yourself so that you choose the one that suits you better. Take the whole process (before and after the sale): from the expression of the need to the customer care service. Pick-up one chunk, the one that- knowing who you are- you believe you can add value in.
It is important to mention that while choosing a strategy you need to be careful about three crucial factors:
· Your target’s perception: some strategies might be negatively perceived by a target market. For instance, if you are offering high quality product/service, ( and your target is wealthy people) you cannot differentiate yourself by adopting a low cost strategy because wealthy people associate cheap services/products to low quality.
· The value to your target: some differentiation strategies might not be seen as compelling by your target market. This is why it is very important to understand your customers so that you offer something valuable to them.
· The difficulties to be imitated: is it possible for your competitors to imitate your strategy and offer similar products/services? The best strategies are the ones that make you unique for a long time. However it is not always possible to find such strategies, thus, you need to always look for new ideas of differentiation. The point is to always offer something different.
5. Create a competitive advantage: The hard work is done: now you have all the information required, just assemble the parts of the puzzle and build your offer around the specific and unique thing that makes you different.
6. Inform your customers about your unique offer: A huge mistake that lot of entrepreneurs make is skipping this step. You might have an outstanding and unique offer but if you don’t communicate about it you will miss several opportunities. To inform your prospects about your offer, choose the language they use, the words that talk to them. Here again, knowing your target is very important because it will help you attract and keep them.