To help avoid race-to-the-bottom price
comparisons, most B2B companies know they need customers to view them as different from their competitors. If the offering is not different (in a way that creates value for the customer), buyers
will quite understandably hone in on the cheapest provider.
And, whilst most of us hear the word 'differentiator' weekly within the corridors of power, I've seen many organizations struggle to get this area right.
Before I list out the key patterns I see, it's worth saying that differentiation can come from:
· 'what' you do: core products/services including 'peripheral' factors such as approach to distribution, billing and after-sales service
· 'how' you sell and serve: advice, relationship and customer experience
The key issues I commonly encounter are:
1. No internal consensus: Different leaders within a company are unclear or have conflicting views. Without internal alignment, how can there be a focused external message?
2. Mixing strengths with differentiators: One is what you're good at but not necessarily unique in. The other is where you're truly different from your competitors.
3. Generic 'differentiators': I'd be a rich man if I could have a £/$/Euro for every time I hear leaders say, "Where we're different is service and our people." Pretty much every company thinks they're great in this area. Very few, however, are truly different from the rest and, more to the point, can prove it. Which leads nicely to...
4. Evidence: There's often a lack of hard proof supporting the differentiator. Therefore, it's just viewed as a claim which won't stand up to scrutiny.
5. Customer/client impact: The 'so what?' is what really matters. How do each of your differentiators make a quantifiable difference to the strategic objectives of your customers? At the highest level, these objectives are making money, saving money and managing risk. In some cases, your differentiators may have direct line of sight and impact on your customers' customers.
Addressing these points is key for so many areas in your business, from new business or growing existing accounts to enabling executive conversations or responding to tenders. The reality is that when you ask end customers for their views of the key providers in their marketplace, suppliers are often viewed as the same. That's very different to how the providers view themselves, meaning they're often in a false state of belief.
And one final point. If you feel you're on top of these areas, great news; however, do be careful not to shout early on in the sales cycle about your differentiators. Remember, at that stage buyers are thinking about their challenges and strategies, not what you sell. You need to have conversations that help them think about why they should change what they do before they start thinking about suppliers that could help execute that change. You're then in a great position to let them know just why you're the best company to help them.