In my last two blogs we talked about Why
You’re Really in Business, and How
to Identify Your Ideal Customer.
In this blog we’re going to take it to the third
critical question:
Why should they buy from you?
Businesses everywhere, and in every industry, are constantly
trying to figure out how to differentiate themselves from their competitors.
Ask yourself these two questions:
- Why would a customer want to purchase your good or
service over that of a competitor?
- How do you differentiate your good or service from
the competition?
The answer to this is knowing what is called your:
Unique Value Proposition
I’ve
said this in my last two blogs and I’m going to say it again:
“You’re selling your product or service
because you’re solving a problem, or problems, for your customers”.
But likely, other businesses are trying to solve their
problem(s) too.
Your
differentiation, or unique value proposition, is your secret ingredient. It's
something that's distinctive to your business that offers a definitive, tangible
benefit to your customer.
Your
Unique Value
Proposition is something that only you can provide, or no one else
can do it as well, or they can’t do it at your price.
Some
differentiators are easy to figure out while others are harder to come by.
Maybe
you're the only dentist with a kid’s play area on the premises. All other
things being equal, that’s a differentiator.
But
maybe you’re a business that doesn’t have such an easily defined advantage. So
how can you create a differentiator for your business?
Let’s
look at a few ways, but there are many others:
-
Look at your competition. What do they do that you can’t? What can you do that
they can’t do, or do as well? Maybe your location is more convenient to
customers – use whatever differentiator you can establish.
-
Read your competitors’ social media reviews. Skip the 5-Star reviews and focus
on the 3 and 4-Star reviews. When you see a comment that goes something like, “I
would have given them a higher ranking if”, everything after the word “if” is
your golden nugget. Deliver on that and you will be doing something your
competition isn’t.
-
Offer something to address common customer concerns and frustrations. For
example, guarantee that your service delivery technician will show up within 15
minutes of the scheduled time or you’ll provide the first hour of work free.
-
Never make a claim you can't deliver on. Be sure you can do what you promise or
your differentiator will be useless, your reputation will suffer, as will your
business. Trust is important!
-
Build great customer relationships. The #1 way to differentiate yourself
is to build great customer relationships. Move from a transactional mindset to
a relationship mindset.
Why????
The
simple truth is that….
Buyers and sellers with
the best relationships will do the most business together.
Here
are some questions you need to answer to help you Define Your Unique Business Value Proposition:
-
Product/Service Description and problem you’re solving:
-
What are you not going to do?
-
What will be unique about your offering?
-
Where is the proof you can deliver on the promise?
-
What is your pricing strategy?
Once
you've established your differentiator(s), reduce it or them into a few words –
this is your elevator pitch!
Communicate
it at every opportunity.
Use
it in your ads, letterhead, marketing collateral, your website, signage, sales
calls, and everywhere.
Your
differentiators should roll right off of your tongue.
If
you don’t know why customers should buy from you, they won’t either!
And
make sure you deliver on it!
Ultimately,
you need to help your customers answer the following question:
Why my product or
service?
We can help you with this!
For more information about
how The Cobalt Group can help you define your unique business value proposition,
or any business or leadership challenges you are facing, Contact
us.
We want to hear what you think. Leave a comment and let’s start a
discussion.
