The 6 Most Effective Methods to Differentiate Your Business
Successful business owners differentiate their companies to effectively grow sales profitably, while improving client loyalty within a competitive business environment. Successful businesses set themselves apart by offering unique features or having more efficient processes that lead to cost savings and lower prices for customers.
Here are the 6 most effective ways to differentiate your business:
1. Increase Your Value Perception – When customers see that your product is different and has more value, style, or class, your sales go up because of the better value your product offers. Businesses often differentiate themselves by creating a perception that they offer better quality given the price they pay.
Being the cheapest supplier can be the best strategy when you are selling a commodity, and you have no other way to stand out.
Businesses often believe that promoting donations tied to sales can enhance the way customers perceive them. This occurs because customers feel pleased when they see businesses actively participating in the community. Rachel Lamb of Luxury Daily reports that 20% of consumers are willing to pay more for a product that supports a cause, and 94% of them are willing to switch to a brand that supports a cause.
You could also increase the trustworthiness of your brand by asking prior customers to provide testimonials. Your potential customers will see that past customers have had positive experiences with your company, enhancing the perceived value of your business.
Your company’s market research could suggest that you should implement a guarantee to increase customer satisfaction. Remember, if you don’t fulfill your guarantee, people will lose trust in your brand.
Some businesses target time-crunched customers by offering a more convenient shopping experience. To improve your company, consider extending operating hours or opening more convenient locations. Business owners should analyze whether implementing this tactic will result in profitable sales growth despite the increase in operating costs.
You can make your business stand out by creating a special club that offers unique experiences to your customers. They can join the club either by spending a certain amount of money each year through your business. Offering a higher-end experience may make customers go to great lengths to support your business.
2. Improve the Perceived Quality or Opulence of Your Offering – Established brands could whip you out of the market because of their financial muscle and their more developed brand perception. To outperform them, concentrate on aspects beyond price, like the excellence or luxury of what you offer.
For example, a candy business could differentiate its product on taste, convenient packaging, or ingredients. As such, the consumer is willing to pay a premium for the additional value created by this differentiation. Luxury car manufacturers could associate their vehicles with class and style as wealthier customers will easily be willing to pay a higher price due to the commensurate opulence and the status symbol that the car offers.
Another way you can improve the perceived quality or luxury of your offering is to use dropshipping as your business model. Using this method, you can offer various products from different suppliers without investing in inventory or warehousing. This also allows you to focus on marketing and branding and create a unique and memorable customer experience. If you’re interested in learning about dropshipping and how it can help you build a cohesive brand image, you can check online sources for more information.
3. Service Self-Employed & Startup Businesses – Self-employed professionals and startup businesses are crucial for making positive changes in our world. However, they are also the most vulnerable sector of our workforce. Building long-term relationships with them can be a great opportunity, as they often have unmet needs. Offering relevant products or services will help your business grow. By offering a smaller version of your services, you build a relationship with other businesses. This helps your business stay in their mind as they grow.
To service self-employed and startup businesses effectively, it helps to understand their challenges and goals, so you can tailor your solutions accordingly. Some of the common challenges that self-employed and startup businesses face are:
Limited budget and resources – Self-employed and startup businesses must often operate on a shoestring budget and rely on their skills and abilities. They may be unable to afford expensive or complex products or services or hire external help or expertise.
Lack of time and attention – Self-employed and startup businesses often must juggle multiple tasks and responsibilities and deal with constant distractions and interruptions. They may need more time or attention to research, compare, or evaluate different products or services, follow up, or provide feedback.
Uncertainty and risk – Self-employed and startup businesses often must deal with uncertainty and risk as they face changing market conditions, customer demands, and competitive pressures. They may need a clear, stable vision, strategy, or plan or a reliable or consistent income or cash flow.
4. Increase Client Loyalty – Increase loyalty amongst your clients to set your offering apart from other companies. While this starts with improving quality, there are other considerations to encourage customers to return to your business.
You could utilize marketing automation to increase the personalization of your marketing messaging. Customers who believe that you provide valuable service will be willing to share their personal information with you. This helps you tailor your service to the customer, which influences 86% of purchasing decisions, according to Infosys. Additionally, 73% of customers prefer to do business that utilizes their personal information to make their shopping experience more relevant. Businesses then can develop user-generated profile platforms to gain emotionally intelligent insights and customer opt-in solutions, which increases customer loyalty.
5. Increase The Level Of Customer Service That Your Company Offers – Improve your company’s customer service to keep customers satisfied. It’s important because it’s more expensive to attract new customers than to retain existing ones. Providing customers with a good experience is important because it leads to repeat business and higher spending. Statistics show that 81% of satisfied clients will return to your business, and they are likely to spend 9% more than new customers. When you fail to provide a good experience, 51% of your clients will not return to your business.
6. Utilize Social Media To Elevate Your Brand – Social media is a prime communication medium to express customer appreciation. 81% of clients pay attention to brand executives on social media, and their confidence increases when they receive relevant information that appeals to them.
One pro tip that you should consider giving a gift or complimentary upgrade to your loyal social media advocates. Although it may not cost your company much, it’s very likely that your supporter will share this great experience, attracting more customers and giving positive exposure to your brand.
Differentiating your business can be costly, but it will often result in greater long term profitability. Your marketing messages should connect with your target audience to make them see your offering as unique.