KEY POINT: Products and Services are no longer the big DIFFERENTIATORS they used to be…they have become COMMODITIES. Understanding WHY customers buy from you and HOW to get more of them to buy from you (and buy more) is critical to building a foundation of going BEYOND DIFFERENTIATION™.
KEY QUESTION: Do your customers buy from you because you have the lowest PRICE, best TERMS, most AVAILABILTY, or best LOCATION? Or do they buy from you because you do things for them and make them feel special and important that your competitors don’t?
Today, being DIFFERENTIATED by your products and services isn’t as easy as it used to be. And for many, it isn’t working any longer. To truly stand out and be THE ONLY ONE people talk about, you need to go BEYOND DIFFERENTIATION™.
Sadly, based on the feedback we get from customers, the majority of businesses aren’t really differentiated in their eyes. Businesses may believe they are differentiated because of their products and services, but this isn’t the case in today’s highly competitive and low “barrier to entry” markets. In the eyes of their customers, they are just another COMMODITY business selling the same (or similar) products and services.
Today, winning the COMMODITY GAME is NOT ENOUGH. The DIFFERENTIATION GAME has become more complex and sophisticated. To truly distance yourself from your competition, you have to go BEYOND DIFFERENTIATION™.
Do you truly know if you are DIFFERENTIATED or a COMMODITY? Answer this one question (honestly) and you will have your answer…
Do your customers buy from you primarily because you have a better PRICE, better TERMS, more AVAILABILITY, or easier LOCATION?
If your answer is YES, there is a high probability your customers are buying from you because they view you as a COMMODITY.
Here are four ways to help you determine if you are truly DIFFERENTIATED or a COMMODITY in your customers eyes and what happens if they are…
NOTE: It is easy to get lots of people telling others to buy from you because you happen to be the cheapest game in town…this isn’t DIFFERENTIATION…this is being the cheapest COMMODITY at the present time. This should not be confused with customers buying from you because they see you as something unique and special, beyond the FOUR COMMODITY FACTORS. Leading your market when you are winning in one of the FOUR COMMODITY FACTORS plays havoc on your profitability (and many other factors) when you have to continually discount your valuable products and services.
When you go BEYOND DIFFERENTIATION™, you can stop (or significantly reduce) these FOUR COMMODITY FACTORS from impacting your business.
When customers DON’T SEE YOU AS A COMMODITY, they interact with you differently. For example, if an online store has a lower price on a particular product, but the customer still prefers to buy from you (at a higher price) because you offer them things the online company can’t…such as HELPING THEM use the product or demonstrating different ways to use the product, you aren’t viewed as a commodity. In addition, if you offer them a WOW EXPERIENCE, research has shown that most customers (89%) will pay the higher price to get this experience.
Or what if a business has a more convenient location? Businesses that have gone BEYOND DIFFERENTIATION™ have customers driving the extra distance to buy from them because they love the way they are treated and how they can help you solve your issue better than the more convenient location. Customers tell us they are willing to drive farther (even with the higher prices of gas) because of the way they are treated.
WHEN A COMPANY OFFERS CUSTOMERS MORE than the FOUR COMMODITY FACTORS, research says they will pay more, wait longer, or drive further to work with this DIFFERENTIATED business. To achieve the coveted state of being THE ONLY ONE customers tell others about, businesses must STOP COMPETING IN THE FOUR COMMODITY FACTORS!
Going BEYOND DIFFERENTIATION™ is FOUNDATIONAL to an organization…it becomes their CULTURE.
This FOUNDATION is based on three critical elements customers tell us they absolutely positively want when they buy from or work with any organization. And when they get these three critical elements, they will go out of their way to tell others how incredibly awesome and amazing you are to work with or buy from.
The THREE CRITICAL ELEMENTS customers tell us they want you to give are…
These three critical elements have NOTHING TO DO WITH YOUR PRODUCT OR SERVICE. These are CULTURAL elements…which is why they need to be part of the FOUNDATION of your business. When your customers feel they are getting these three elements, they return the favor by giving you their LOYALTY. And if you they truly trust you, you earn their ADVOCACY…where they tell others you are THE ONLY ONE they should buy from or work with.
The HOLY GRAIL for any business on the planet is earning your customers ADVOCACY. And it has the incredible side benefit of getting you FREE MARKETING since they are telling others how incredibly awesome and amazing you are as a business. There is no business on the planet that can’t benefit from having more delighted customers telling others they should buy from them…NO ONE.
GOING BEYOND DIFFERENTIATION™ is the future for any business to become the market leader and eclipse their competitors. While it isn’t easy to change your culture, the rewards have proved to be massive!
What To Do Next...
You can learn more about going BEYOND DIFFERENTIATION™…on my website (WOM10.com). Look forward to an upcoming post/article where I will share with you more specific details on HOW you can start your own journey and eclipsing your competition. I look forward to seeing you on the “other side” of differentiation and eliminating commoditization from your business.
