Your competitors are always on your heels, trying to beat you by offering similar products or services — frequently, even at a lower price. Those in business know that competition is fierce. Competition drives prices down, making it more difficult for you to earn profits.
To stand out from your competition and stand apart from the crowd, it is critical that you create distinction.
A distinction strategy for your business (and for yourself as a professional) allows you to stand out from competitors and creates valuable differentiation for your products and services.
By distinction, I mean differentiating yourself from your competition in the minds of your customers in a manner that has relevance and importance from their perspective. This differentiation takes place within your customer’s mind — and is often reflected in your communication or behavior towards your customers and prospects.
Your distinction strategy allows you to make a clear statement about what makes you unique and how this uniqueness translates into benefits for customers.
We have all witnessed how competitive pressure has forced companies to constantly attempt new approaches. Perhaps it is new products or services, new names or branding (such as we have recently observed with Facebook becoming Meta), new advertising messages, and more. These new tactics are all from companies hoping to become the provider of choice in their industry or specialty for their customers. Yet we frequently discover that these efforts have no meaning or value to customers or prospects!
As mentioned earlier, distinction practices are actions or behaviors that distinguish one business from another in a way that has relevance and importance to customers. These practices can be implemented both internally and externally in an organization. For example, you can recognize them through the creation of product differentiation (offering customized products or services) and customer differentiation (segregating customers based on their wants, needs, or desires).
Attempts to create space from the competition have been around for a long time. However, despite its long history, it seems like more businesses are now getting on board with differentiating themselves from competitors. Leaders and entrepreneurs finally realize that the marketplace is too competitive to merely imitate the competition, hoping you sustain enough marketshare to stay afloat.
The benefits an organization can experience by creating distinction are perhaps the most crucial reason this approach is becoming so popular. Distinction has always been beneficial for customers, but now it can be found even more frequently throughout internal business models because of how it enhances profitability.
One benefit to distinction is that it attracts customers by increasing interest and attention to your products and services. Your distinction becomes a point of interest to existing and potential buyers. Customers are naturally drawn to you because the distinction you deliver benefits them in some unique manner.
In recorded history, no customer has ever exclaimed, “I LOVE doing business with them — they’re exactly like everyone else out there!” It’s not your similarities that attract customers — it’s your differences, your uniqueness. If you’re exactly like every other competitor, the only way you win is based on price. That’s the worst location in which any business can find itself!
Lastly, differentiation saves money for both parties — you and your customers. According to Professor Robert Lusch, “A differentiation strategy will save money over a commodity strategy (because commodity) requires more extensive market coverage and multiple price points.”
As I state in my book, “ICONIC,” the distinctive are informed about what the competition is doing, but it does not rule them. When you play the game your way, you become a leader in your industry. When you follow a competitor’s path or get caught in the trap of imitation, your progress will only be about the same as your rivals.
Distinction serves as an enormous benefit to your customers, saves money for both parties, and draws needed attention to your product or service.
Why wouldn’t you want to pursue a course of distinction?
If you’d like to learn about how you and your organization can stand out and earn more, contact me at The Distinction Group.
