Differentiators in Business – How to Find Your Key Differentiators
When looking for a business idea, there is one thing that new business owners aim for: to be unique. It is important to strive for uniqueness if you want your business to stand out in the crowded industries and high level of competition. This is why it is important to find your key differentiators in business if you do not want to fade into the background.
What Are Differentiators in Business?
What exactly is a differentiator? The most basic definition of it is something that you possess or offer as a business that sets you apart from competition. It can also be a benefit that you provide your target audience.
It is similar to your business’s unique value proposition. These are qualities that put you ahead of your competition, so they are likely to choose you over the others in the market.
The main thing about differentiators is that they should make your customers feel good about their purchase. When customers feel good about their purchase, they are more likely to buy from you again or tell their friends about your company.
Main Criteria in Identifying Differentiators
As part of your marketing effort, you need to identify the key differentiators in business. To make it work, it must comply with these three important criteria:
- It must be true. You cannot make something up just so you can make your business look good.
- It must offer something of benefit to your prospective clients. Remember: it is your goal to make them see the benefit of choosing to do business with you.
- It must be concrete. You should be able to prove or demonstrate the benefits that you claim to offer.
A lot of businesses meet one or two of these criteria but rarely all of them. Your ability to identify and capitalize on these differentiators can give you a significant competitive edge.
Types of Differentiators in Business
Differentiators can come in a variety of shapes and sizes and can also vary depending on the type of industry your business is in.
Take time to learn about these differentiators and see where you can gain an edge over your competition.
1. Product Differentiator – This is probably the most common way that businesses differentiate themselves from others. The first method to differentiate your product is through features, efficiency, and performance. Another method to differentiate is with the perceived value of the product, which can be manipulated through advertising.
2. Price Differentiator – This is another common way to differentiate your business and products. For example, you can specialize in offering affordable products that are meant to attract budget-conscious buyers.
3. Reputation Differentiator – Another way you can set your business apart from others is by building a reputation based on your image. For example, your brand may be known for its world-class service or superb product quality. Even if your products cost more than others, the perceived quality based on your business reputation makes you the preferred option for consumers.
4. Service Differentiator – Just as businesses invest on developing high quality products that sell, service is also a key differentiator. Buyers put a premium on quality customer service. In fact, even a poor experience with the product quality can be remedied by superior customer service.
How to Identify Your Differentiator
Are you finding it difficult to identify what differentiates your business from others in the market? Don’t worry – almost all businesses struggle with this. After all, most (if not all) businesses start with the same goal: to develop a product that is unique and offers value to consumers. If all businesses have that same aim, how are they different from each other?
You can identify your business differentiator by asking a series of questions. These questions are designed to help you find a deeper understanding of the nature of your business and how you can set a distinction from your competition.
Here are the questions you need to reflect on.
What do you do that the competition does not?
You might need to do a bit of market research and competitor analysis on this one. Look at how your competitors are developing their products and services, as well as how they market them.
Next, make a list of the things that are unique about your business. You can do the same with your competitors. Look at the areas where you might overlap. The ones that do not will serve as your unique selling point. Focus on the ones that offer the best value and highlight that as one of your key differentiators.
How do customers benefit from choosing you?
When marketing your company, you need to ask this question from the customers’ perspective: what’s in it for me? You need to put a lot of emphasis on your customers’ journey in your marketing strategy. Your goal is to keep your customers happy.
Make a list of things that your customers love about your business and why.
What do your customers have to say?
When all else fails, you must go straight to the source. Find out from your customers what they love about your products or services. After they have made a purchase from you, you can ask them to complete a survey. This will give you an idea of what their feedback is on your products or services.
You need to specifically look at why they chose you over your competition and how you stand up in terms of their expectations.
The Bottom Line
Are you able to identify your differentiators in business? Now it is time to promote them! Make sure you communicate it to your existing and potential customers so they understand what your business is about and why you are a better choice than others. Focus on your differentiators when crafting your marketing message, especially the value that your customers can get.
Identifying your differentiators is one of the most powerful tools you can use when building a winning marketing strategy. When executed properly, it might just be the competitive edge that you’re looking for.