Why is differentiation in business important?
When you differentiate your business, people remember you. When they remember you, they spread the word about your business to their network and the world. Today’s competitive business environment has made differentiation more important than ever, especially with the impact of the internet and the impact of the COVID-19 outbreak.
When running any successful business, it’s important to clearly differentiate the business in the eyes of potential customers and continually focus on the uniqueness of a company’s services or products. This is called a Unique Selling Proposition, or USP, and is the most basic element of every successful company’s message.
A well-defined USP constructs a memorable message of these unique qualities and very clearly answers “Why should I do business with you instead of one of your many direct competitors?” Many business owners tie their USP to “good customer service.” Unfortunately, there is nothing unique about good customer service, since all of your competitors probably feel they offer good customer service too.
A good product and good customer service are integral to acquiring and retaining your customers. However, a well-written USP defines how your potential customers choose you over a competitor. If you cannot clearly define the uniqueness of your product or service and create some enthusiasm for customers to buy it, you probably don’t have the basic foundation for a success-ful company.
In this chapter of our Timeless Principles for Exceptional Businesses, Ray Brun, TAB facilitator in California asks business owners the question: What is your Red Rose? Effectively, how will your customer remember you and what can you put in place to differentiate your offering?
Download this chapter for:
- A guide on how to differentiate your product or service
- How to develop a killer USP (unique selling proposition)
Differentiating Your Offering