It’s easy to talk about being different.
We can all sagely nod our heads and claim that we fully understand the importance of differentiation. We all get the notion that we need to be different in our offering, in some meaningful way, if we are going to successfully attract and retain customers.
The next question is the one that seems to cause us some issue.
Do we actually implement some type of differentiation in our business?
My informal, non-scientific observations suggest that our understanding of differentiation frequently gets parked at the door. We seem to be so immersed in the day-to-day minutiae of running our businesses, that we overlook what it takes to stand out from our competitors. Prospects can buy from us; buy from our competitors or not buy at all. If we don’t focus on maintaining some type of compelling differentiation within our business, why should anyone care?
In Harvey Thompson’s book Who Stole My Customer, he claims that the top two major reasons for losing prospects or customers is lack of courtesy followed by lack of competence. These are both staff related issues. Both speak to skills that can be learned. Both suggest areas where a differentiation strategy could pay significant dividends to the business. [learn more about Who Stole My Customer in episode 10 of BIZBUZZ]
Phil Kotler (of marketing fame) states that the company that stops getting better gets worse.
Getting better is a conscious decision taken by the business owner. It involves a focus on differentiation. Better must, by definition, indicate a better experience for our customers.
Are you engaging in a periodic review of your differentiation strategy, in this very crowded space that we occupy? If you’re not, beware!
Future State of Affairs 