If you don’t stand out from your competitors in some meaningful way, your business won’t survive for long. In this video taken from the Ecommerce Growth Engine, Learn why having a business differentiation strategy is so important, and a step-by-step approach to creating your own unique value proposition.
**Templates Mentioned in Video**
Growth Plan: https://bit.ly/3MxOD17
Differentiation is the process of distinguishing your business from competitors by meeting one or more of the core driving needs of your target customers better than the competition. This unique value proposition (UVP) gives your business a competitive advantage and increases the chances of customers choosing your products or services over others.
To effectively differentiate your business, it is crucial to understand the core driving needs of your target market. You should consider four categories of needs:
To identify your target customers’ core driving needs, list all the possible needs for each category and then highlight the most critical ones. These driving needs are the key factors that influence customers’ purchase decisions. If you don’t already know which needs are most important to your customers, you could send a survey to your best customers to find out. This should be done before moving onto the next step.
Once you have identified the core driving needs of your target customers, the next step is to develop a differentiation strategy by deciding which needs you can meet better than the competition. This will help set your business apart from others in the market. Here are some tips to guide you:
By following this two-step process of identifying the core driving needs of your target customers and selecting a differentiation strategy, you can create a unique value proposition that sets your business apart from the competition and increases the likelihood of customers choosing your products or services.
To make your differentiation claims compelling, provide objective, measurable data or reasoning to support them. This can include research studies, case studies, testimonials, unique qualifications, or experience. A powerful example of legitimacy is offering a guarantee – such as a delivery guarantee or a quality guarantee – that puts your money where your mouth is.
Examples of Successful Differentiation:
* Feetures: a sock company. Offers a lifetime guarantee for its products – showcasing its confidence in their durability and quality.
* Patagonia: an outdoor clothing brand. Has an ironclad lifetime guarantee that builds trust and loyalty among customers while staying true to its eco-friendly values.
* Atolla: an AI-powered skincare brand. Offers a money-back guarantee on first purchases, demonstrating confidence in its customized beauty serums.
With these examples in mind, it’s time to apply this to your own business. Here are the Key Actions to Take:
Differentiating your e-commerce business is essential for growth and success. By identifying the core driving needs of your target customers and focusing on meeting those needs better than the competition, you can create a unique value proposition that sets your business apart. Remember to provide tangible evidence to legitimise your claims and continuously work on refining your differentiation strategy.
If you enjoyed this guide to business differentiation, subscribe to our YouTube channel for more content like this.
Good luck growing your e-commerce business!
💰 If you’re interested in learning how to grow your eCommerce business, then sign up for our free Ecommerce Growth Engine video training series here: https://bit.ly/3SHfCbj
If you need help finding your target market and building a cohesive marketing strategy, get a no strings attached 30 min digital marketing strategy session here.