Step 2

Differentiate Your Company From your Competitors

Don't Try to Be Everything to Everyone

Sellers appear to avoid focusing their messages on a specific target market for fear of losing business elsewhere.

However, all this does is dilute what might otherwise have been a compelling message for some group.

In trying to address everyone, the watered-down version becomes compelling to no one. Which means sales go nowhere.

Consider the Following Statements

If you were an executive in a global financial services firm, which statement would you find compelling? 

 “We provide a complete loan management system to all financial service firms of all sizes.”

 “We provide highly scalable data solutions to Global Financial Service firms that must securely handle millions of mobile transactions each minute, in any currency and country.”

The first statement says nothing specific about what the vendor can do for a global financial services company. It tries to appeal to everyone and because of that it is believable by no one. 

Meanwhile, the second statement articulates specific pain points a Global Financial Service team may deal with–such as the huge amount of transactions that must occur in any given minute, and the complexity of the transactions.

The intended audience of this statement will clearly know this is offer is for them. 

Differentiation starts with Two Deliberate
Acts of Selection

1. Select the right target customer group.

2. Select the right competitors against which to position your products/services.

Without completing the first step in our four-step process (Identifying the real customers) effective differentiation can’t be achieved.

Although most executives know and agree with this, very few are able to complete the analysis necessary to lead to decisions they can trust.

Bringing in an outside party to conduct this analysis–working with Leadership Team–is one of the most effective ways to drive these two acts of selection to successful closure within a reasonable amount of time.

Once you have selected your target customers and competitors, developing your positioning statement becomes a relatively straightforward exercise.

ASK YOURSELF

Do you Satisfy your Customers' Needs Better than Anyone Else?

Once you identify how you differentiate yourself from your competitors, the next step is to articulate the compelling need your target customers have and how you are better than any of your competitors in meeting that need.

Here’s an example of such a statement.

“We are the only PSD2 certified data platform that enables global financial services firms to process tens of millions of mobile, online, and in-store transactions each day, supporting thousands of merchants using hundreds of payment methods, in over a hundred currencies.”

Obviously, the above claim must be backed up with evidence, but the level of specificity makes it hard for competitors to simply copy the claim.

Schedule a free 30 min analysis of your value proposition.

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