Differentiate or DIE (Mwahahahaha.....)

Jack Trout wrote a classic book on marketing called "Differentiate or Die." I haven't read it yet, but the title is a lesson in and of itself. (You might want to check out "Positioning," by Jack Trout with Al Ries, which I have read and is fascinating.)

Creating a Unique Selling Proposition (USP) is a strategic move. It's taking a look at the competition and finding a void that no one is filling...then claiming that void as your very own.

It's classic chess-level thinking. And to continue the theme of my last post, it's the most fundamental and most important aspect of your marketing system.

So how can you differentiate yourself without competing on price?

Well...price is certainly one way to do it. Some companies can be successful by positioning themselves as the price leader. Think of Walmart. Or the local mattress store that always boasts "We'll match anyone's advertised price or your mattress is FREEEEEEEE!" (BTW, that statement doesn't really make sense if you think about it. I mean, what are they going to say, "Sorry...we can't match that price. I guess we'll have to give you a free mattress!")

Anyway, moving on...

But price is only ONE way to differentiate and is not the best option for most small businesses. In fact, competing on price alone is a sure path to bankruptcy.

Consider instead, other ways to differentiate. Here are some ideas...

1. Speed of Delivery. (Think Domino's or FedEx.)
2. Speed of Service. (Like a one-hour response time for IT support, for example.)
   
3. Quality of Product. (Be VERY specific about WHY your product is better.)
4. Outstanding Customer Service. (Like Zappos.com...but again be specific about WHY your service is better.)
5. Expertise. Does your company have unique knowledge, expertise, or experience?
6. Customer Experience. (Starbucks, Cold Stone, any high-end establishment)
7. Specialization. Do you specialize in a particular industry, product, application, or niche?
8. Unique Process. Do you break industry norms? Think of CarMax: "The way car buying should be."
9. Unique Guarantee. Remember Craftsman tools' lifetime guarantee? That was the only brand my Dad would buy.
10. Location (or number of locations). Could work for retail businesses, but leaves you vulnerable if a competitor moves in next door.
11. Accessibility. Do you have accommodating hours, like a 24-hour call center?
    

It's important to remember that the best USP is one that can't be duplicated very easily. If your USP causes everyone else to change in response, then you'll have to come up with a different USP.

Think of Domino's. They built the franchise based on the "30 minutes or less" guarantee during a time when no one else was doing it. And they were phenomenally successful because of it. Now, however, everyone offers fast pizza. It's not unique anymore. The challenge for Domino's, then, is to come up with a fresh USP.