Do You Differentiate Your Business ???

If I ask you, "How are you different from your competitors," what would you say? Would your answer be really specific? Would you tell me something unique? ....... or would I get the usual general statements like, "We give really great service" or "Our product quality is really good."

Successful businesses know how to differentiate themselves from their competitors. It is not just important to do that - IT IS MANDATORY !!!!! First, you must give your potential customers a reason to notice you and secondly, you must give them a reason to become customers and buy from you.

In your strategic planning, you must do two important things. First, determine what your niche is. What are you going to be? Don't try to be all things to all people. For example, let me take it to an extreme. Do you think consumers are going to buy high-fashion, expensive clothing at the same store where they buy dishwashers and refrigerators? (Believe it or not, one well-known retailer thought so in the 1970s. It didn't work.) If you are going to be an appliance store, do you want to sell large appliances like refrigerators or do you want to specialize in small appliances like toasters and irons? Are you going to specialize in upper-end expensive appliances or lower end moderately-priced appliances? Are you going to sell to builders or to the general public? FIND A NICHE AND DOMINATE IT.

Once you determine what your niche will be, the second important area of your strategic plan should be to answer the question, "How do I differentiate myself from my competitors who are going after the same niche?" Let me repeat what I said before. You must give potential customers a reason to notice you and then become customers and buy from you.

If you sell appliances, you may differentiate yourself by giving a special warranty in addition to what the manufacturer offers. You may offer a special preventative maintenance service. You may decide to guarantee that when you are called for service, you will arrive at a specific time rather than within a two to four hour range as most service people do.

Just use your imagination. Ask yourself, "What don't my competitors do?" Survey your customers. Ask them what they would like that no one is currently providing. Yes, it may increase your cost but that cost will be insignificant compared to the extra sales it will create.

Once you know how you are going to differentiate yourself from your competitors, you need to emphasise the difference in all of your marketing. It is useless to be different if no one knows it. Make those differences a featured part of advertising campaigns.

Remember, if consumers do not have a reason to buy from you and to choose your business over your competitors, they are just as likely to buy from someone else.

Thanks for visiting The Business Adviser. I welcome your opinions on the subject. Please feel free to comment.