How to differentiate your product service from the competition?
Are you regularly looking at how to differentiate your product or service from the competition? Over the decades I have seen many business owners focus on making sure they differentiate their product/service from their competitors. Sometimes this is to validate the price they are charging for their product/service. Other times it is to discover what their competition is offering so they can compare themselves to competitors. There are many reasons to perform this exercise and it can be very valuable to know the differences. What are their strengths and weaknesses, and what are yours. What can you learn from what they are doing. Can you turn the competitor weakness into your strength?
Best way to understand what differentiates your product/service
The best way to perform this project is in stealth mode. When building companies to grow their market share we have contracted with outside service companies to ensure we gather all our competitor’s strengths and weaknesses as well as learning as much as we can about their pricing structure. This ensures our competitors have no idea they are sharing everything about their business with a competitor. Price is only part of the story; how satisfied are the customers? Does the product perform, do they have a lot of claims, if so what about. Is the product or service using a similar technology. How can we add more value?
When we do this, we do it with the goal of being able to increase the price we are charging for our product/service. It is never about trying to undercut our competitors pricing. It is always about providing greater value to our customers and increasing our margins.
Differentiate your product/service by giving great value
Do you want customers that appreciate receiving great value for the products or services you provide? You may ask why we are focused on this, I am sure you have heard of the Prato or 80/20 rule. This rule proves that you receive the greatest amount (generally 80%) of your revenue from 20% of your clients. Coincidently, these are also the clients that complain the least, pay on time and are great repeat customers. These are the types of clients we want more of as customers.
A good reputation helps differentiate your product
When you have well designed processes and procedures in your business you can grow this 20% of great clients to 30%, 40% and more. As this is happening your company’s reputation is growing and you are painlessly growing your market share.
You are also growing your operating capital which gives you the ability to designate more money to marketing. This in turns finds you more high quality clients by providing marketing with the resources to refine the marketing so it finds and attracts the high quality customers that you really want to do business with for decades to come.
Additionally, marketing will be able to research what additional services your customer base will like to buy from you because they have such a great relationship with you. Every new product or service your existing clients buy from you delivers greater net profit to your company’s bottom line due to a much smaller product acquisition cost.
To Your Growth & Profits
William De Temple CEO Antirion LLc
PS If you want to know more please contact us here
Do you have question for William? Submit your question here My Question for William