How to differentiate your business from the competition
Differentiating your business from the competition is key to be successful, however it’s hard to do it correctly.
When I started my business, I spent hours looking for ways to differentiate myself from potential competitors.
As a result of that I had nothing to sell for months.
I was so focused on re-inventing the wheel that I was missing out on business opportunities.
The day I stopped focusing on what I didn’t have and, I started leveraging what I had instead, things changed.
I realized that people buy results and not features. They want the experience not the product.
It wasn’t about revolutionizing the models I was using, the same ones that have been used by many for decades, but about understanding and exploiting my competitors’ weaknesses.
It meant I had to narrow down my niche to coaches, consultants and service providers.
Above all, I had to define what my ideal customers valued the most, so I could compete in areas other than price by providing additional benefits.
Here are 3 steps you can take to differentiate your business from the competition
- Be clear on who your target customers and how your product/service can help them.
- Define your ideal customers’ pain points and desires so you can focus your offering on what they value the most. For example, if lack of time is a problem for them, you may want to offer a done for you service.
- Understand your competitors, what they offer, their positioning and, determine their weaknesses. Do a competitor research into the following areas:
- Target audience and
- Product or service offerings
- Geographical locations where your competitors’ product/services are available
- Pricing and payment methods
- Delivery method and return/refund policy
- Competitors’ content type and reach
- Websites look and feel
- Social media presence and engagement
- Customer satisfaction levels
- Customer reviews of competitors’ products and/or services
- Type of marketing campaigns and promotions the competitors have run
Once you studies your competitors and searched for gaps, concentrate on finding potential practical solutions. For example, think if there is anything your competitors don’t offer that you could offer or whether you could make any improvement to what they already provide.
When you are clear on what makes your business stand out from the competition, you are ready to create your value proposition.