People are the "X" factor.
Ashish Punj
Senior Partner at Gpounj Consulting & Former Co-Founder of Pikkop Envío Fácil — transitioning to new ventures in software and logistics innovation. Let’s connect!
I started my first and only startup in 2017 and had no idea what I was taking on.
As a founder bootstrapping my startup, I was constantly questioning how can I differentiate my business from the competition, which has a head start in the Mexican market, or have deep pockets and no shortage of the talent pool to hire.
I won't bore you with the shenanigans, but I want to share that I am still hanging in after five years because I was fortunate to build a team and product to survive this cutthroat competition until now.
These are my key findings.?
I realized that product differentiation is short-lived. It is straightforward to duplicate almost any product innovation, and anyone with enough capital to buy a machine, infrastructure, or talent may be a competitor in days or weeks.?
2.?Service Integrity Differentiation
Think about a business like KFC, like their chicken sandwich, you like it or not, but they know how to deliver it with integrity, you will get the same service and the product in New York or New Delhi. The fries are cooked the same at each location, have the same amount of common salt, and are served equally fresh and delicious.?
3.?Building Collaborations Differentiation
Big or small, we all need help; good collaborations can provide coverage, availability, immediate access to expertise, and higher levels of customer or technical services.?
We have to tackle a fragmented market for many small businesses like mine, and it's not feasible to reach the end-user without the correct distribution or collaboration.?
A collaborator can become a staunch ally for any business with sufficient support, training, joint sales call, supporting literature, lead sharing, etc.?
Even in a non-exclusive relationship, a committed partner or an ally can create an advantage through joint promotions, bundling, warranty and service support, and technical assistance. It is time-consuming and costly for a competitor to pre-empt or duplicate this level of Differentiation.
4.?Relationship Differentiation.
An often-overlooked means of Differentiation is through company personnel. Employees, associates, or team members are the first point of contact with the customer; they are responsible for executing day-to-day client-facing communication; they are the link between the product and the customer.?
If that linkage breaks down, the business cant survive.?
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In many companies, the sales representative, CSR, or the technical service representative becomes a trusted member of the customer's team, ensuring that the product is delivered on time and works as it is supposed to while resolving any issues quickly and accurately.?
A performance like this creates emotional bonds between the vendor and customer.
This avenue of Differentiation is closely related to service but focuses specifically on the people. Customers want to conduct business with people, not an institution. Building this relationship takes time but establishes a highly differentiated position.
?? 5.?Reputation Differentiation.
Branding is much more than just creating a logo. It is the ongoing communication of your value proposition in a meaningful and effective way.
A surveys say that it takes seven repetitions of any message even to be considered.
With a small marketing budget, the most thoughtful, most effective strategy is moving away from a branding strategy and a customer-driven approach. Pick a handful of customers that can drive the success of your business.?
That could be anywhere from 3 to 4 or 15 to 20, but it is not hundreds. Then focus all of your budgets on these companies. Give them exactly what they want, and do it better than anyone else.?
You will increase your share of their business, and they will become loyal advocates and promoters of your business.
??6.?Price Differentiation.?
Most prices are subject to negotiation in the B2B world, and some customers are prepared to pay more than the prevailing market price.
But if you can create at least one of the following criteria, I am sure it will establish a winning factor.?
However, not all differentiation strategies are equally effective, and some methods may be more practical than others to stand out from the competition.
But my point is that to differentiate from the competition, one needs to build a stellar team around your business.?
And if the team has an "X" factor in them, it becomes fun.?
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Ashish Punj
Co Founder
www.pikkop.com