Successful business owners differentiate their companies to effectively grow their business and increase client loyalty in competitive business environments by making their products or services appear more attractive, regardless of the size of the company. When businesses successfully differentiate themselves, their marketing is designed such that it makes the product feel from competing products.
Here are the 5 most effective ways to differentiate your business:
- Increase Your Value Perception - Businesses could differentiate their product or service such that the client is getting a better quality product or service given the price they pay by doing business with you.
Simply becoming the lowest cost supplier of your product or service is most visible when you are selling a commodity. When you are doing this, your product or service would meets the minimum qualitative standards.
Many businesses find that highlighting defined amount of money that would be donated when a consumer purchases a product increases value perception because it encourages their customers to be happy. According to Rachel Lamb of Luxury Daily, 20% of consumers are willing to pay a higher price for a product or service when it supports a cause, while 94% of them will switch to a brand that supports a cause from one that does not.
You could also increase the trustworthiness of your brand. Many companies accomplish this by asking prior customers to provide testimonials of their experience with your company. In turn, your prospective customers will understand that other customers have had a good experience with your company in the past, and will in turn perceive have a higher value proposition of your offerings.
Businesses that have a differentiated product or service offering grows their business in the most effective manner. Your company’s market research could suggest that you should guarantee to increase customer satisfaction. However, any failure to deliver upon the guarantee will cause people to lose confidence in your brand if such a guarantee is implemented.
You could also offer a more convenient shopping experience, which is especially a competitive differentiator for toward clients who time-crunched. Increasing the amount of hours, or opening locations where many of your potential customers may be located may drive positive results for your company.
When customers perceive that no substitute exists because the value, stylishness, class, etc. of your product is differentiated, your sales increase because of your offering's improved value proposition.
For example, you could create an exclusive club that offers your clients an experience that your product is exclusive. Although there are other products that are similar, offering a more luxurious experience makes your product have a differentiated value proposition. As such, the customers will go to all lengths to buy your product.
- Improve the Perceived Quality or Opulence of Your Offering -
Established brands are likely to whip you out of the market because of their financial muscle. To beat them, you need to focus on other areas apart from the price. You increase the quality or opulence of your offering.
For example, a candy brand differentiates its candies on taste, convenient packaging, ingredients, etc. other than the cost. As such, the consumer buys your idea of packaging or healthy ingredients and assumes the price. Car manufacturers could associate their vehicles with class and style. If you are in a certain social circle, you will easily ignore the price and buy a more expensive car because it is classy.
- 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 technology to improve customer service. Customers who trust that you are delivering a service of superior value will be happy to provide their personal information to you. In turn, this enables you to personalize your service towards the customer, which plays a role in 86% of purchasing decisions according to Infosys. Additionally, 73% of customers prefer to do businesses that utilize 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.
- Increase The Level Of Customer Service That Your Company Offers - The customer really is always right, and it is important to treat the ones your have now well since it costs five times as much to attract a new one as it is to keep a current one. When you provide customer service a good customer experience, 81% of your clients will provide repeat business and will spend 9% more than otherwise. When you fail to do so, 51% of your clients will not come back.
- Utilize Social Media To Elevate Your Brand -
Social media is a prime communication medium to express customer appreciation. In fact, 81% of clients listen when a brand executive has something to say on social media; and in turn, have increased confidence in the particular brand.
One pro tip that you should consider giving a gift or complimentary upgrade to your loyal social media advocates. While the cost to your company is minimal, it is highly likely that your advocate will post about this surprising experience which will only provide more customers and positive exposure for your brand.
Differentiating your business can be costly, but it will often result in greater long term profitability. Investing in creative marketing often captures the attention of your previous customers. Therefore, your messaging should resonate as much as possible with your prospective clients once you decide to introduce your differentiated product or service!
Need help in growing your business? Let a highly experienced business consulting agency advise you in the most effective manner in how you can take your business to the next level! Schedule a free business consultation today to learn how to improve the differentiation of your business from your competitors today by calling us at 617-651-1457 or emailing us at firstname.lastname@example.org!