“Economic success comes not from doing what others do well, but from doing what others cannot do, or cannot do as well.” – John Kay
Chances are, your business doesn’t offer a completely original, never-before-seen product or service. Chances are, there’s somebody out there doing the exact same thing that you’re doing or doing something very similar. And if there isn’t somebody doing it now, chances are, there will be soon. By showcasing how your business or product is different from your competitors, you’re providing your ideal customer with even more reasons to buy from you instead of the next guy.
But first, you have to identify who your competitors are. Keep in mind that just because someone is in a similar business, that doesn’t necessarily mean they are a competitor. If another company is selling a similar service or product, but focused on an entirely different market, they’re not a competitor. You’re only competitors if both of you are competing for the same valuable resource – customers. And since you’ve completed Step 8 to Building A Better Business, you know exactly who your ideal customer is, and you should be able to more clearly see who else is going after that same group of individuals.
Once you’ve identified 2-3 competitors, study them. Look at the way they present themselves. What sort of image does their marekting convey? What feelings do they evoke? Jot down a brief summary of each of your competitor’s similar products. What advantages does your product offer vs. the competition and what advantages do competitors’ products offer vs. your product? Is there anything different in the way you service your customer? Do you provide free shipping or no-questions-asked returns? Do you offer a satisfaction guarantee? Gift wrap? Customization?
In his recent critique of the site Free Pursuits, new media expert Chris Garrett suggests a simple, fill-in-the-blanks exercise to help you phrase what makes your business different.
One way I like to approach this is by using the following fill-in-the-blanks phrase:
Unlike other Lifestyle Design Blogs, Free Pursuits (or Your Company Name) ___________, which means for you __________.
The first part of the phrase identifies how you are different, the second part answers “so what?”.
Rewrite the sentence, filling in the blanks with as many differences as you can think of. And remember, you should only highlight those differences that mean something to your ideal customer. If your ideal customer doesn’t perceive any value from this difference, it’s really not worth mentioning.
Once you have documented how your company’s products and services are different from your competitors, make sure you highlight these differences in all of your future marketing efforts.
