What does differentiation—finding your business’ unique selling point—have to do with that cup of coffee you’re drinking?
Here’s a hint: Standing out from the crowd isn’t about just selling a great product anymore. In today’s market, most businesses don’t compete on selling a product per se.
Let’s take coffee as an example. How many coffee shops are there near you? What about home-brew coffee options at the grocery store or online? No matter where you live, I’ll bet you have a wide choice of coffee options.
And yet, if you think about it, these places are all selling the same product: coffee. The difference might be how they roast their beans or the atmosphere of their shop or the things they sell alongside the coffee. It’s all held together by the same basic beverage, and yet you have a personal preference for one over the other..
The secret here is differentiation.
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Differentiation is standing out
Differentiation answers the question “Why should I buy from you instead of your competitors?”
In the retail and tech sectors, this can be especially challenging. These companies are often used to selling based on their product. They are the only local source for that one thing—or at least one of a very few options. Build a better product, and the selling point is baked in. Job done.
Traditionally, businesses have largely competed on product, price, service level, reputation, perceived status (i.e. luxury brands). When these things begin to level out among competitors (as in the case of product, price, or service level), it’s essential to find a new way to connect with your customer base.
Why some businesses feel left out
Other businesspeople we talk to tell us they feel left behind the competition. Are we adopting new technologies fast enough? Are we offering enough to our customers? Is our offering priced low enough—or is it priced too low? What do they have that we don’t?
If you’re asking questions like this, you’re doing something right already. But don’t get analysis paralysis; assess your own strengths as well as your competitors’. What do you have that they don’t? What can you do that they can’t (or can’t do as well, as quickly, etc.)?
The simple truth is that businesses, especially tech and retail businesses, that don’t understand differentiation can start to feel left behind. They compare themselves against others and start to panic about what they’re not doing. But ask yourself: Is this really what my customer base wants? Is this really meeting a need?
If the answers are no, then it’s not something you need to worry about right now. Focus on meeting your customers’ needs with your strengths. That’s where your difference—and your unique selling point—is.
Is there a problem CX by Design can solve for you? Whether you’re looking to erase friction points from the customer journey or reduce waste and eliminate bottlenecks from internal processes, our 20 years of experience is at your service. Contact us today for a free 30-minute consultation!
