Part of operating a successful business is finding ways to differentiate your business. Within each industry, there are a lot of differentiation strategies to help you stand out from the competition. In fact, figuring out a way to differentiate your business from the competition can help a company increase performance and sales. Here are four differentiation strategies to consider.
Superior Customer Service
One of the ways businesses can differentiate themselves among their competition is by providing a superior level of customer service. Lots of businesses have a tough time handling questions about their platform or orders, and keeping the customer informed. Providing superior customer service allows customer to stay updated throughout the processing and delivery of their order; this can help reassure them when any problems arise.
Within the customer service area, there is also the dilemma of dissatisfied customers, and dealing with returns or refunds. Keeping customers happy, or issuing them refunds, can be a major reason why they might shop with you again. Or they may become sour and spread their distaste with your company or brand to others. Keeping customers satisfied through superior customer service can provide several benefits to any company; it help to create a competitive edge or advantage among competitors who have lackluster customer support or customer service components.
Operational Excellence
On our list of differentiation strategies is operating more efficiently and effectively than the competition. Within each business, there is often a certain set or standard procedure that takes place behind the operations of the company; creating an effective and efficient operation can provide numerous benefits. Companies can find ways to produce their goods or services at a lower cost, expedite the time it takes to deliver the results or goods their clients are looking for, or become more skilled within their day to day operations.
A high level of operational excellence results in customer or brand loyalty; it also often increases performance results. Certain companies might be able to stretch their dollars further than others to help fuel a competitive advantage for their businesses as well.
Clear and Transparent Communication
Clear and transparent communication works hand-in-hand with customer service. But there are other ways a business can be clear and transparent with their customers as well. By giving potential customers an idea of what they can expect, you keep the customer informed throughout the process. Sometimes overlooked, clear and transparent communication can be a difference between choosing between two different options or two different vendors. By keeping the customer informed and up-to-date, they can track orders and any news that may arise.
Cost Effectiveness
One of the ways many customers tend to decide between providers is by cost. Having a cost-effective product with the same type of value or quality as the competitors can attract customers who are looking for the best price. Cost effectiveness can be created in two ways. One is by simply having a lower price and having a more cost-effective solution; the other one is by providing more value or doing more than the competitor is willing to do for the same price. Cost effectiveness becomes a differentiation strategy when you have a unique product that can provide the same or better value for a lower price.
Using differentiation strategies is important for business success. There are many different ways for a company to create a competitive advantage and find different ways to effectively differentiate themselves within a competitive market.