What separates your offering from the rest?

To get my clients to think proactively about what differentiates them from their competitors, I encourage them think about their offering like playing a game of cards.

Your current offering represents your ‘buy-in’ to the market and in much the same way as poker, if this is insufficient, the player (you) cannot compete. This ‘table stake’ could be a price point, or specific feature your offering has, that makes it an option to a potential customer.

First, ensure you can meet this ‘stake;’ from that point on you can begin to develop your offering, so it is differentiated further from your competitors, builds on your company’s core competencies and most importantly, caters to the needs and wants of your specific target market. This is how you create a winning hand.

A limiting mindset – Offering complacency

Being the cheapest option is a strategy that very few businesses can assume. Those that can have an ultra-efficient, or cheap, production method, or sit on so much capital, or years of experience, that they already have a firm position in their market. The likelihood is that this method of competing will not be available to you.

Consequently, I encourage my clients to pursue a differentiation-based strategy, by ensuring that their offering/service is unique in some way from their competitors’.

When you have been working in a business, or industry, for many years, you can become so familiar with your product that its appeal seems obvious to you. Do not be blinded by your pride in your own offering/service. It’s fantastic to be proud in what you do, but you have to remember that the average consumer will be less informed and unaware of the specific benefits you can provide.

What you offer might be the best on the market, but you have to prove this continually.

A missing element – True differentiation

To begin the process of differentiating your offering from your competitors, you must have a defendable base to work from. By this I mean a steady, reliable source of income that can fund a more positive acquisition strategy.

As part of this approach, I would advocate generating the maximum possible profits from your existing customers. ‘Winning new business’ and ‘expanding your portfolio,’ might seem like appealing targets, but they can be costly, particularly in terms of marketing spend. If you’re not utilising the people already on board, then this is something you should certainly be looking into. What else could they want from you? Exploring these possibilities, could generate new revenue streams that can naturally broaden your company outlook, all from a more assured position.

It seems blunt to say, but your opinion of your product is irrelevant, if your potential customers aren’t choosing it.

Whether your offering stands out from the crowd is decided by the following equation:

Differentiation = Core competencies + Competitor comparison 

Much like your defendable base of clients, your core competencies are those things your business consistently does particularly well. This might include:

1.  Product features – What specifically makes your offering appealing in your market?

2.  Service features – How do you interact with your customers to keep them coming back?

3.  Tailoring – How do you adapt your product/service to each individual customer?

Putting your strengths aside, it’s vital you know what else is in your market. You can’t be different if you don’t know what you’re differing from. Try identify niches that aren’t being filled and work from there. I understand this sounds simplistic, but it will require some proper research to maintain your differentiation.

A different perspective – Better storytelling

It might seem unfair, but a technically weaker offering can seem more appealing, if it has a compelling narrative to accompany it. Your potential customers will be as interested in your story and their part in it, as they will the offering itself. You need to consider the packaging as much as the present inside it, as your story, positioning and brand promises are the emotional hook that attracts people in the first place.

It's proven that an emotional response is naturally made before a rational decision. For this reason, many underestimate the importance of connecting emotionally with their target market.

Keeping your offering relevant is an ongoing task that you can never draw a line under. This might sound daunting, but having an outward looking strategy and assessing what you currently have will always benefit your company.

Having the best offering and showing this are separate but related components, achieve both and you’re on to a winner.