Why should I do business with you?
Probably the most basic of competitive questions, but unfortunately most companies answer the question (probably not in as many words) by saying “Do business with us, because we’re pretty much the same as our competition, but we’re good at it”. What choice does it give the Customer?
Customers see every supplier in the same light. They look at your business, your competitor’s business, or some unrelated business, and they believe they can get the same thing, just as good, for a similar or lower price, from your competition. The sad thing is … they are right! Businesses force themselves to compete as commodities and will continue to do so until such time as they do something to change their customer’s perception.
More than a Commodity
The great challenge for any business is to place itself above being seen as just another ‘commodity’ – to differentiate itself from all its competitors to avoid being compelled to compete in low-margin price wars. You want to force an ‘apples and oranges’ comparison between your business and your competition in the eyes of the customer. Create such a significant difference in what it’s like to do business with you that customers can go nowhere else to get the experience they desire.
Once you have established your superior product and exceptional service offering, the real fun begins. The first step in rising above being just another commodity business is to recognise the fact that the market sees you as ‘just another commodity’. Be realistic and force yourself to see your company through the eyes of your customers, both existing and prospective!
Do not try to differentiate your business with false promises. Customers are not dumb! Once they figure out that you are promising more than you can deliver you won’t have to worry about them anymore, because they’ll be gone for good. This strategy will not differentiate your business – it will destroy it!
You can’t advertise your way to superior performance either! If you want to run an ad campaign that tells the public how great you are, here’s a tip – get the superior performance first! Customers know the truth; they’re flexing their economic muscles more that ever before. They will not tolerate deception! Not only will they leave you if they feel misled or mistreated, but they’ll also look for retribution. Retribution which will come in the form of legal action or simply telling everyone they know that your business is making promises it can not keep. There is no such thing as “normal” exaggeration of claims for a product or service – you must deliver what you promise.
Beyond Expectation
To avoid the commodity trap, you must find points of genuine differentiation, mostly by looking in places you’ve previously neglected, and going beyond the expected factors of price, quality, and service. The key is VALUE! Customers are looking for ways to solve their problems or create opportunities for themselves. You need to offer more than simply a good price to keep customers happy. You need to help them use your product or service to make their dreams become their realities.
Today, the real competitive battles in the marketplace are being fought beyond traditional notions of service, quality, and price. Service in areas such as problem solving, or what experience or feeling is created for the customer is the unconquered territory.
Think about where you differentiate or, more aptly, where you do not. It’s probably not with your product: Its rare that anyone gains competitive edge strictly on product quality. Quality is an expectation today – an entry-level factor. Everyone makes good products! Gone are the days when only a handful of car manufacturers made quality cars, and the rest made cars of questionable quality. Today, even economy cars impress with their durability and features.
Your People WILL Differentiating You
The irony is that when you create a truly high-quality product, you compete only against other high-quality products, so the competitive battle shifts from quality to other areas, such as your people. Do you think your people are better than your competitors’? Prove it! What do they do that other people do not? How is your training better?
Your people can be that great differentiating factor that enables you to rise above being a mere commodity, and they could enable you to defy comparison!
There are many ways you can differentiate yourself, as well as many examples of what companies around the world have done. First though, you need to change your mindset and become determined to differentiate yourself and create your own niche. Only then will people such as us be able to help you to identify, and then mine, that winning strategy!
Success in business is all about getting the business fundamentals right … and the actions you take!
QUOTATION:
The most powerful weapon you have in your armoury is the determination to go the extra mile for someone else without the expectation of some monetary reward. The beauty of this weapon is that it is hardly known, and no defence against it has yet been devised!
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