Do you know how to Differentiate Your Business?
Written By: Joel McGinley.
There are three basic ways to position or differentiate your business from its competitors:
1. Be a market leader. Choose a particular market and focus on being the leader in that market.
2. Be unique. Offer something no one else or just a few shippers do.
3. Be a price leader. Focus on providing low-cost services. Wal-Mart is a good example of a successful business built on this strategy.
Warning: Trying to be all things to all people will inhibit your growth. Instead, be the very best at something. In his book Good to Great, Jim Collins describes what he calls the hedgehog concept. A hedgehog is an animal that protects itself by rolling into a ball that cannot be penetrated. Your marketing strategy should protect your business in exactly the same way.
Whatever direction you choose, commit to it, and do everything you can to be the very best at what you do.
Next, identify your company’s unique selling proposition. What makes your company different? Is it the way you communicate with your customers, your unique transportation services, the technology you use, or something else? Figure out what makes you “the purple cow” that stands out from everyone else. Even if your uniqueness is not 100% unique, treat it like it is. Make it work to your advantage.
Tip. Your unique selling point should be about more than your equipment or what you haul.
Once you are clear on what your unique selling proposition is, design everything about your business around it, and make sure that your employees fully understand it and know what they need must do to underscore it and deliver on it. Then, go after customers that are seeking that uniqueness, making sure that you clearly convey to them what distinguishes your business from the competition.
Tip: When you offer something unique, you can usually charge a bit more than firms that don’t offer what you do and/or you will be able to minimize your price competition.
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