KEY POINT: Challenging times, such as Inflation and other economic factors, cause customers to be much more discriminating regarding purchases…both B2C and B2B. When buyers have less spending power, they are forced to evaluate where they spend their money. Businesses that truly DIFFERENTIATE themselves will capture these scarce dollars. Focus on GOING BEYOND DIFFERENTIATION™ instead of focusing exclusively on your products and services, and you will eclipse your competition and earn massive LOYALTY and ADVOCATES in the market.
KEY QUESTION: Are you focusing on the CORNERSTONES that will truly DIFFERENTIATE beyond your products and services or just competing in the FOUR COMMODITY FACTORS (Price, Terms, Location, and Availability)?
Over the past several months, I have been talking to various business leaders and owners of SMBs (Small-Medium Businesses) about their plans for dealing with this crazy increase in INFLATION. These leaders also spoke about some of the top CHALLENGES they face during these uncertain economic times, and I learned what they are most afraid of going forward. While they were enlightening conversations, they were also disturbing.
Here are FIVE of their TOP CONCERNS.
While these five cover different aspects of their business, there is ONE THING THEY HAVE IN COMMON. They have a core cause of not being DIFFERENTIATED in the EYES OF THEIR CUSTOMERS. In every case, they are battling to demonstrate why they are better than their competitors…trying to DIFFERENTIATE and set themselves apart. They don’t feel they are differentiated enough (outside their products and services) to build LOYALTY and RETENTION with their customers.
The PRIMARY ISSUE is most leaders didn’t feel like they had solid plans for how they could truly DIFFERENTIATE themselves ahead of their competition so they could minimize the impact of the five top concerns listed above.
They all realize how important it is to their overall profitability (and possibly survival) to create some differentiation in each of the five areas. But they really don’t feel like they have the expertise or knowledge to make it happen. Their current plans will merely help them “stay in the game” but not differentiate them as a leader in the eyes of their employees or customers. They are concerned if they can’t attain a top leadership position, being viewed as differentiated, they could lose the battle in the current economy.
In every case, none of the leaders understood what it meant to GO BEYOND DIFFERENTIATION™ and demonstrate they are different outside of their products or services. They hadn’t thought about how they could create TRUE DIFFERENTIATION by CHANGING THEIR CULTURE.
When businesses go BEYOND DIFFERENTIATION™, they add an entirely new way for their employees and customers to see how different they are from their competitors…in a way their customers and employees appreciate and will reward them. It isn’t product or service-focused…it doesn’t matter what you sell. Focusing on the CORNERSTONES necessary to create this level of differentiation gives them a true competitive advantage and will help improve ALL FIVE ISSUES they are facing today.
When businesses incorporate the CORNERSTONES of going BEYOND DIFFERENTIATION™, their CULTURE CHANGES. It becomes one that CUSTOMERS LOVE and EMPLOYEES WANT. They become CUSTOMER OBSESSED, and their customers reward them with increased LOYALTY and ADVOCACY in the market.
Going BEYOND DIFFERENTIATION has nothing to do with your products or services. It focuses on building differentiation in NON-COMMODITY areas.
For example, when we talk to customers and ask them why they are LOYAL to a particular business, it rarely has to do with their products and services. Customers tell us their loyalty comes from the WAY THEY ARE TREATED and whether or not they TRUST the company. When all the products and services look the same and are offered at similar prices, the DETERMINING FACTOR is how the business MAKES THEM FEEL.
When customers (and employees) feel IMPORTANT, SPECIAL, and like they MATTER to the business, they build a relationship with the company. They feel like they matter, and they start to TRUST the business. When they feel this way, they want to continue buying from them, EVEN IF THEIR PRICES ARE HIGHER. The research shows that 83% of customers will PAY MORE to be treated like they matter.
Their LOYALTY isn’t determined by the FOUR COMMODITY FACTORS of price, availability, terms, or location. It is determined by how the company treats them and whether or not they have done things to build TRUST with them.
QUESTION: Do you have a culture where your employees go out of their way to make your customers feel special, important, and like they truly matter? Does your culture BUILD TRUST?
When economic factors, such as Inflation, are present, customers become much more discriminating about who they want to work with and buy from. By default, trying to differentiate with just your products and services generally means you are competing on one or more of the FOUR COMMODITY FACTORS. This does NOT BUILD LOYALTY and often generates LOWER PROFITABILITY.
When you change your CULTURE to one that prescriptively builds TRUST and consistently delivers a WOW CUSTOMER EXPERIENCE, you will CREATE LOYALTY and, ultimately, ADVOCACY.
Customers have proven that when their dollars mean more to them, as in the case of higher Inflation, they choose to work with businesses that truly APPRECIATE THEIR PATRONAGE. They want companies to give them more than just a low price…they want to BUILD A RELATIONSHIP with the business and be treated like they matter to the business.
When the exact product they bought last year is 20 – 50% higher today, they want (and expect) more for their dollar. Customers believe they are spending more money and getting less. A business can make them feel like they are getting more for the increased dollars they are paying by giving them a WOW EXPERIENCE and showing them how important they are to the business. Demonstrating this by KEEPING YOUR PROMISES and BUILDING TRUST is what they are looking for and expect.
As a business changes its CULTURE to deliver these CORNERSTONES to their customers, they are GOING BEYOND DIFFERENTIATION™. They are going beyond product and service differentiation to a much higher and deeper level of differentiation. They are going to the levels their customers want…and demand in tough economic times.
What To Do Next...
It starts with deciding if you truly want to be DIFFERENTIATED in the eyes of your customers (and employees) or if you are happy slugging it out day-to-day with all your competitors. Do you like competing on COMMODITY FACTORS, or are you ready to change your culture and stand out from your competitors? Do you want a CULTURE that demonstrates to others just how important and special they are and how much they matter to you? Do you want to build more TRUST with your audience? If this sounds like where you want to be as a business, take the first step to reap the same benefits some of the best companies in the world receive…decide to GO BEYOND DIFFERENTIATION™.
If this is what you want for your business, you can get it! You start by deciding to create this kind of culture and to incorporate the CORNERSTONES to go BEYOND DIFFERENTIATION™. There are a variety of resources available to help guide you. You can START by learning more about what it takes to make this happen. You can get this on my website (WOM10.com), by reading my latest book, my blog posts, and by reading more about it from other sources. Solid knowledge of what it takes to GO BEYOND DIFFERENTIATION™ is a great place to begin your journey.
As usual, if you have any questions or need assistance along the way, feel free to shoot me an email or give me a call, and I’ll be happy to answer your questions or give you some guidance…complimentary, of course. I want you to THRIVE during challenging economic and inflationary times and eclipse your competitors. Do you?
