Are you ever annoyed or hesitant when you talk to prospective customers simply because you cannot readily explain why they should arrive to you instead than go to your competitors? Sure, you might have your 30-second elevator speech, but then they inquire you that dreaded query, &quotSo what tends to make you different?&quot Then, all these self-doubts creep in, and you just aren’t certain what to say. Differentiation can increase self-confidence–yours in yourself and that prospective customer’s self-confidence in you!

– Dif-fer-en-ti-ate v. tr. To perceive or show the distinction in or in between discriminate. –

In business terms, to differentiate means to produce a benefit that customers perceive as being of higher value to them than what they can get elsewhere. It’s not enough for you to be different–a possible customer has to take note of the distinction and must really feel that the distinction somehow fits their need better. (Other words that mean virtually the same thing: Competitive Advantage Unique Selling Proposition or Worth Proposition.)

As you are building your business, you can use differentiation to entice much more customers. As soon as you have momentum, differentiation allows you to charge a higher price simply because you are delivering much more value to your customers. Make a point to evaluate and adjust your differentiation techniques at minimum annually.

The various techniques of differentiating your businesses fall into 4 general categories:

Cost Differentiation

Concentrate Differentiation

Product/Support Differentiation

Customer Support Differentiation

Cost Differentiation

Differentiating on price is most likely the most common and easily understood method. Nevertheless, for Solo Entrepreneurs, caution is in purchase. On the 1 hand, possible customers might expect a lower price from you than from your larger competitors simply because they perceive you as having less overhead, etc. On the other hand, cheaper prices can evoke perceptions of lower high quality, a less-stable business, etc. And if you contend on price against competitors with deeper pockets, you can price yourself right into bankruptcy. Be inventive with this differentiator by competing on some thing other than straight price. For example, you might provide:

- More value–provide much more items or services for the same price.

- Freebies –accessories, companion items, free upgrades, and coupon codes for future purchases.

- Totally free shipping, etc.–comfort sells, particularly when it is free!

- Discount rates–consists of offering regular product sales, coupon codes, etc. (see cautions above)

Concentrate Differentiation

For Solo Entrepreneurs, this is the most essential method of differentiation, and in numerous methods, the easiest. Why? Simply because as a Solo Entrepreneur, you simply cannot be every thing to everybody, so you must choose a particular way to focus your business. As soon as you have carried out that, you have an automated benefit over larger businesses simply because you can turn out to be much more of an professional in that 1 field –and you can develop near relationships with crucial customers that will be tough to duplicate. For example, you might differentiate yourself through:

- Location–take benefit your closeness to prospective customers.

- Customer specialization–be very particular about what characteristics your customers will have-for example, racing bicycle enthusiasts or businesses with a spiritual conscience.

- Customer relationships–know customers really well, type partnerships with them, and get them to communicate for you!

- Affinity relationships–affiliate your item/support with a well-known person or organization.

- One-quit purchasing–provide every thing your target marketplace requirements, in your area of knowledge.

- Wide choice (inside your area of interest)-although this 1 might seem to be the opposite of focus–the crucial is to be very particular in 1 dimension and very broad in an additional.

Product/Support Providing Differentiation

How a lot you are in a position to differentiate your item or support offering will vary based on what type of business you are in. For instance, if you are in a extremely regulated business, your options might be restricted. Explore a totally new marketplace or type of item or support, nevertheless, and the opportunities abound. The crucial to successful differentiation in this class, again, is to know your customers, really, really well. Talk to them frequently, and you will know what they need most and be in a position to provide it, long before your competitors know what is occurring. For example, your item or support could stand out in 1 of these methods:

- Quality–produce a item or support that is outstanding in 1 or much more methods. Examples: Lasts lengthier

- Better

- Easier to use

- Safer

- New/First–be the initial 1 to provide some thing in your place/field.

- Functions/Choices–provide lots of options, unusual combinations, or solve a problem for a customer in a way no 1 else does.

- Customization–as a Solo Entrepreneur, you might be in a position to much more easily deal with special orders than big, mass-marketplace competitors.

Customer Support Differentiation

Have you observed how customer support seems to be out of vogue these days? This scenario tends to make excellent customer support a great opportunity for differentiation and an additional natural benefit for Solo Entrepreneurs that currently know what is essential to their customers. Build your reputation on making customers really feel really great about performing business with you. Functions great with referral marketing, as well. Examples:

- Provide quick–subsequent day, or 1-hour–make it faster than customers think possible.

- Unique channel–provide a support over the phone or Internet rather of in person or in their workplace instead than yours.

- Support-delight customers!–it might seem costly to provide outstanding support–but it pays off in word-of-mouth advertising.

- Before/throughout/following-product sales assistance–offer technical or other assistance to customers utilizing your item. You might use joint ventures to offer that assistance–but customers will perceive it as being from you!

- Guarantee/warranty–provide one hundred% cash-back, or free substitute parts.

- YOU–provide yourself, your distinctive blend of talents and abilities, to entice customers. Make certain they get entry to you, as well!

Keys to Successful Differentiation:

- Know your customers, really, really well.

- Pick a blend of differentiation techniques that, in the eyes of your customers, truly sets you apart.

- Talk about your differentiation in terms of customer benefits.

- Inform everyone about what differentiates you–frequently.

- Keep your differentiation clean by listening for altering customer requirements.

Copyright 2002-2003, Terri Zwierzynski, Accel Innovation, Inc.

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Terri Zwierzynski is a coach to little business owners and Solo Entrepreneurs. She is also the CEI (Conductor of Extraordinary Ideas) at Solo-E.com and the author of 136 Methods To Marketplace Your Little Business. Terri is an MBA honors graduate from UNC-Chapel Hill. Terri has been coaching for over ten years in a selection of settings, including 6 years as a senior-level coach and advisor for a Lot of money 500 company. She opened her personal coaching practice in 2001. You can attain Terri at http://www.TerriZ.com.

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