5 effective strategies to differentiate your small business from its competitors
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How can you set your small business apart from the sea of competition? Why should customers prioritize your brand over other competitors? It’s a critical thought nagging the minds of every business owner and a key concern for the livelihood of a business’s survival.
In today’s world of immense competition in almost every other sector, it has become challenging to distinguish your business. In any industry, numerous enterprises offer the same or somewhat identical services to the same customer base. Any promotional message a prospective customer receives from you is probably something delivered in similar phrases by your competitor. And a majority of companies have unique selling points which, let’s admit it, are hardly distinctive.
Given this, today, brand differentiation has become more crucial than ever before. A brand differentiation strategy, in simple terms, is a way to distinguish your product and services from others in a similar space. It may necessitate drawing attention to a unique aspect of your product or highlighting the vision of your small business. Nonetheless, it’s important to note that brand differentiation involves much more than outperforming your competitors. It includes crafting a comprehensive business model to add value and boost brand recognition.
But this begs the question, how can you avoid getting entangled in the mainstream? Don’t worry – it takes a few strategies to stand out from the growing competition. Let’s explore some of them:
1. Build strategic partnerships
Maneuvering the realm of growing competition while also staying compliant with industry regulations requires a careful approach. Here, the role of strategic partnerships and relationships can be a game-changer. By collaborating with experienced ventures that understand the intricacies of compliance, your business can cement a positive reputation.
For instance, if you wish to claim Employee Retention Credit (ERC), an incentive by the government to encourage employee stability during challenging times such as the COVID-19 pandemic. In that case, aligning with a company adept in the regulatory landscape, such as ERC Today, can help your business thrive on the right side of compliance. These experts can determine eligibility, calculate credit amount, and help you file the claim correctly. This way, your business can attain financial relief, boost employee retention, and inevitably, gain a competitive edge.
2. Leverage cutting-edge technology
Previously, incorporating technology into existing business operations used to be a challenge. Besides being a costly endeavor, training and educating employees on how to use the new system, more often than not, required substantial time. And this, in turn, caused hindrances in the routine workflow. However, this isn’t the case anymore. Today, modern technology can seamlessly get integrated into business processes, and it doesn’t take much time to understand the user-friendly system.
The business realm is continually evolving, and so should your business. If your small business provides the same services as your rivals, ensure to deliver the services and interact with customers uniquely. By capitalizing on cutting-edge technology, your business can challenge conventional methods and offer solutions that address customers’ pain points. Not only this, but by leveraging accessible, user-friendly, and advanced technology, you can set apart your small business from others.
By spearheading innovation, your company can become synonymous with advancements. Not only this, but your business can also set new standards since customers naturally get attracted to brands that showcase a willingness to advance.
3. Deliver exceptional customer service
After you have launched a product or delivered service in the market, it’s entirely in the hands of customers to determine whether it meets their expectations. If the product or service isn’t up to mark, you still have the chance to make up for customer relationships by providing superior after-sales customer service.
The statistics speak for themselves; according to a recent study, approximately 89% of customers will probably make another purchase after receiving excellent customer service. Not only this, but 78% of customers are willing to excuse the mistake of the business if they get positive customer service. And if these stats weren’t enough, a report shared by Microsoft revealed that 90% of customers consider customer service an essential factor in determining whether they wish to do business.
Given these staggering statistics, if you think you can cut corners with customer service, you might need to rethink. Besides improving customer lifetime value and retention, exceptional service also boosts brand awareness.
4. Become an expert at marketing
When rising above the competition, meaningful differentiation is critically important. Therefore, do thorough homework and figure out your brand’s emotional and rational attributes. Most importantly, try to distinguish your business on a sensory level, or you may call it distinctiveness.
Generally, a business attains distinctiveness when it looks unmistakable, for instance, by utilizing unique assets like brand colors and logos. But for this strategy to yield results, you must employ a team that approaches brand marketing measurably and consistently. Remember, your marketing message should emphasize what makes your business different from its competitors rather than highlighting the similarities. So, don’t hesitate to break the mold when approaching marketing communication.
5. Become socially responsible
Value undeniably is one of the excellent ways to distinguish your small business from the rest. However, it’s also relevant to note that adding value is complex. Most new ventures too often provide quality services at low rates to boost customer value. Nevertheless, small businesses can add value and stay ahead through community involvement.
According to research, approximately 66% of customers would willingly pay more than the original price for sustainable products. So, besides concentrating on internal business operations, consider going out and getting socially involved in the community. Some examples of social responsibility may include hosting industry-related events, volunteering, sponsoring, and donating to charities. These socially responsible ways demonstrate that you value your people, boosting brand image in today’s heightened competition.
Conclusion
Commencing a business venture and smoothly running it isn’t an easy feat. Differentiating your small business from the increasing competition can be even more challenging, specifically in today’s ever-evolving marketplace. Customers can ditch your brand for another if you don’t determine the ways to distinguish your business venture from the sea of competition. With competition threatening the survival of your business, remember the overarching objective of brand differentiation is to implement a coordinated approach to marketing and branding and offer what your rivals don’t. So, figure out your strong suit and convey them to your intended audience uniquely.
