Uncover the 3 Biggest Myths About Finding Your Differentiation & How To Identify It For Your Business
brand direction & styling by us for Leslie Gleser Yoga | photo by Comeplum
Do you have an excellent reason for customers to choose you over other businesses in your market? A compelling reason so good that it’s a no-brainer to buy from you or work with you?
If not, it’s time we zero in on finding your differentiation.
First, why do you need to find your differentiation (as soon as possible)?
Your differentiation is what makes people buy from you instead of someone else. It helps you avoid having to resort to cutting prices and constantly discounting what you sell to compete and get sales. Your differentiation makes you your target audience’s “go-to” choice for what you specialize in and offer, and it’s key to the success and growth of your business.
(If you find yourself having to lower your price to compete and get sales, click here to learn the 5 most effective ways to fight a price war.)
And if you haven’t figured out what differentiates your business from your competition, it’s most likely because one or more of these 3 biggest myths is holding you back:
Myth 1. You need the one key differentiator that no one else has, literally
You were told that you need to find the one thing no one else in the whole world, except you. So, you’re still trying to figure out your ONE thing – which may seem impossible, especially given that more than 500,000 new businesses are founded each month. (Alfred)
The great news is that people are optimistic and are taking leaps into the entrepreneur and small business world! But with this much competition, finding your one thing isn’t practical or possible for most entrepreneurs.
Instead, find your “differentiation combo” – a combination of your strengths, resources, experience, knowledge, skills, and the specific benefits and results you deliver. Every entrepreneur, every team, and every person has a unique set of differentiation combination, and you can find your differentiator even in a competitive industry. Compared to finding the one thing that makes you stand out from everyone else, isn’t this approach much more doable?
Myth 2. The market is too saturated for your business to differentiate and stand out
If you think there is no room for your business to grow, the problem may not be how saturated the market is, but how you’re defining “the market.”
It’s true that given how many businesses there are, there are a ton of options for customers when they shop for almost any product or service. But it’s also true that customers are becoming more demanding than ever. As customers, we all have different demands, criteria, and priorities when we shop. This means that there isn’t one product or service in your market that meets everyone’s needs, and that there are way more opportunities in every market when you know who you serve specifically.
You don’t have to find the differentiation that makes you stand out to every customer. Instead, focus on serving your specific target audience and customers, and stand out to only them. Find out what they care about most and fill those specific needs.
When you get laser-focused on your target customers, you’re not competing with every business in the market. You’re only competing with the ones who also specialize in serving your target customers.
So, take the pressure off having to differentiate your business from all the competition in the entire market. Start paying attention to who your target audience is and what makes you stand out to them specifically.
If you want to learn more about how to narrow down your target customers so you can get laser-focused with your business and stand out, check out this post and ask the 7 questions every modern entrepreneur should ask to narrow down their target audience further.
Myth 3. Having a unique product or service is the only way to differentiate
You’re spending most of your energy and time on making your product or service as unique as possible. But with so many products and services offers that are available on the market, this can seem like an impractical task.
Another way to differentiate your business is through people’s experience with you, from how they find you, see your content online, learn about your products or services, discover their needs, pay for your products or services, to how they get what they purchased and any additional support, learn about your other offers, and buy from you again (Click here to learn how to engage your past customers). Every interaction people have with you is part of their experience with you.
Your products or services are important, but they’re only a part of what people are paying for, which is the entire brand experience with you. Instead of trying to come up with a unique product or service to stand out, differentiate your business by giving people a stellar and memorable experience.
If you’re ready to take your brand experience to the next level, click here to learn the 3 unspoken myths of customer experience you should stop believing and uncover the 3 secrets to wow your customers & make a spectacular impression.
Here are two more creative ways to differentiate your business:
a. Differentiate yourself through value-adding content
People consume content to learn something, to be entertained, and to connect with other people. So, take advantage of content marketing and get customers’ attention by sharing valuable content that your target audience finds relevant. Share content that does one or more of these 3 things – educate, inspire, or entertain your audience.
To get people to buy from you, they need to trust you and also be aware that they need what you offer, and you can use content to achieve both of these and more. Use relevant and relatable content to attract your target customers, educate your audience on why they need what you sell, build credibility, earn trust, and make them feel connected with you and your business. Use content marketing to position you and your business as the “go-to” for your target customers.
Want to know more about how to use content to power up your business? Start by learning the top 10 content marketing myths that are holding back most small businesses.
Or maybe you want to give content marketing a try but writing isn’t your thing, check out this post to learn how to create content easily even if writing makes you pull your hair out.
If you’ve already been sharing valuable and relevant content, and you’re looking to get more eyes on it, here are 11 tactics to boost your reach and get your content in front of the right people!
b. Stand out through brand activism (your brand purpose)
77 percent of consumers buy from brands that share the same values as they do. (Mohsin) Stand out to your target customers by sharing what you stand for, your why’s behind your business, your values, and/or your brand purpose, and connect with them on a more personal level. Integrate your personal beliefs in your business and marketing, and differentiate yourself by moving your target customers with your passion and action to work towards them.
Want to know how you can apply this? Read this post on how to brand your small business to stand out from the herd.
Once you identify your differentiation, don't forget to tell the world about it! Your target customers are still out there looking for you and the solution you provide with your products or services. Showcase your differentiation and include it throughout your marketing, including pitch, website tagline, social media content, and marketing collateral. Brag about it, your target customers need to hear it!
Need more help on how to stand out from the crowd and find your sweet spot in the market? Check out this 3-step proven framework.
Works Cited
Alfred, Lestraundra. “60 Stats to Know about Entrepreneurship in 2020.” Hubspot, 11 July 2022, blog.hubspot.com/sales/entrepreurship-stats. Accessed 30 Aug. 2022.
Mohsin, Maryam. “10 Branding Statistics You Need to Know in 2022 [Infographic].” Oberlo, 16 Apr. 2022, www.oberlo.com/blog/branding-statistics#:~:text=77%20percent%20of%20consumers%20buy. Accessed 30 Aug. 2022.