Here's the question. How can you close more new clients and command higher prices? The answer is by differentiating your business. It is a simple concept, but it is not easy. And that is why so many businesses struggle to differentiate from their competitors. But today I'm going to break this down for you. I'm going to share 13 ways for you to differentiate your business.
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Ways To Differentiate & Boost Revenue
Here's the question. How can you close more new clients and command higher prices? The answer is by differentiating your business. It is a simple concept, but it is not easy. And that is why so many businesses struggle to differentiate from their competitors. But today I'm going to break this down for you. I'm going to share 13 ways for you to differentiate your business. Hi, I am Tim Fitzpatrick with Rialto Marketing, where we believe you must remove your revenue roadblocks if you want to accelerate growth, and marketing shouldn't be difficult.
This is a topic that is near and dear to my heart. It is one of the things that we focus on from a strategic marketing perspective. It is a key element that must be there. I'm going to break this down for you, try and make it as simple and easy as possible.
What a Differentiator is
First and foremost, let's just define what a differentiator is. What is a differentiator? To me, it's any characteristic of your firm, your company that separates you from key competitors and gives you a perceived advantage in the eyes of your target audience. Okay, I'm going to say that one more time. It's any characteristic of your firm, your company that separates you from key competitors and gives you a perceived advantage in the eyes of your target audience. When potential clients do not see a difference between various providers, the only thing that they can default back to is price, which is why a lot of businesses compete on price. Which is a lousy place to be. I don't want that for you. You don't want that for yourself. We've got to create these differentiators.
There are three tests that a differentiator must pass. Okay, so use this as a barometer, a measuring stick of, is this going to be a strong differentiator? First and foremost, it's got to be true. This should go without saying, but it's got to be true. We can't lie or just make stuff up. Second, your audience needs to see the value in it. If they don't see the value in it, they're not going to care about it and they're not going to see it as a differentiator. And then the third is you got to be able to prove it. This is obviously very tied in to number one, which is it must be true. It's got to be true, and then you've got to be able to prove it. So, for example, one of the ones that we're all familiar with that nobody can prove is, hey, I'm the number one attorney in Denver. I'm the number one or top IT consultant in the nation. Really? According to what metric? And who cares? Nobody cares. So that is not a strong differentiator. So as you think about this, make sure that any differentiators you focus on are going to pass those three tests. And I would highly recommend you shoot for somewhere in the range of three to five key differentiators.
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13 Ways to Differentiate Your Business
Now that we know what a differentiator is, what three tests it needs to pass, let's talk about the ways that you can differentiate. There are so many different ways. I'm going to focus on 13, lucky number 13 today. Let's dig in.
First, you can specialize in a specific industry vertical. I specialize in serving managed service providers and IT consultants. That is a specific industry vertical. I think this is one of the simplest ways to differentiate and one of the most effective ways to differentiate.
Next, you can specialize in helping a specific type of person. What is their role within the company? We work with CFOs. We help CFOs do X, or we help project managers do Y. That is another variation that you can do. By the way, as I go through these different differentiators, obviously you can combine these together. You could work specifically with CFOs for managed service providers.
Okay, next one. Having a unique technology or a process can differentiate you. Early on, I think some of Netflix's competitors have improved here, but early on, Netflix had a recommendation engine that it was like it just knew you. And it started recommending stuff that were like, Oh, my gosh, of course, I'm going to love that. That's an example of a technology that they had that helped differentiate them from their competitors.
Next one. You can specialize in serving clients of a certain size. See this a lot. People that focus on or specialize in helping solopreneurs or Fortune 100 companies. Another example of a really good differentiator.
Next one we've got here is specializing clients with specific characteristics. So this could be moms that just gave birth or businesses that are preparing to sell. We specialize in helping businesses that are preparing to sell, and this is what we do for them.
Another differentiator, solving a specific business challenge. How do I close clients without doing a sales call? You can specialize in that. That's a differentiator.
Next one, offering a unique business model or a way that you do business. If everyone in your industry bills by the hour and you offer a fixed fee, that's a differentiator. Think about on the legal side of things like legal zoom. When legal zoom originally came in, a lot of attorneys bill by the hour or work on retainer, and legal zoom came in and flipped that on its head. That's a really good example. Or Redbox is another example, older example now. But when they initially got into the DVD space, we were all used to buy in from Blockbuster. You'd get it, you'd rent a video, you had it overnight. If you didn't turn it in, you got late fees. Nobody liked it. Redbox came in and said, Hey, just come in, order, and you don't have to wait and away you go. Netflix is another example there as well. Place your order, they mail it to you. You drop it back in the mail, there's no late fees. Those are all examples of people that created a unique business model and turned a specific industry on its head.
Another one, having a specific geographic focus. A lot of businesses do this. Personally, I don't care for this one quite as much, but it can be a differentiator, again, if your market actually sees value in it. But I think there are too many people that default to, hey, we focus in this specific area and their market doesn't really care about it.
Another one. Offering access to a unique set of data or information. All right. So unique access to specific sales data and the way that you scrub it. There are a number of different ways you can skin this, but there are many businesses out there that just have unique data that only they have available. That's a differentiator.
Another one, offering access to unique contacts or relationships. You've been in an industry for 30 years, right? You've built up a Rolodex of unique contacts and relationships that your ideal clients will find beneficial. That can be a key differentiator.
Next one, offering a distinctive level of service. We respond in less than five minutes. Nobody in your market is doing that. That's a differentiator.
Another one, specializing in producing a unique or valuable result. So maybe you focus on converting an owner-driven sales organizations into ones that are autonomous and not dependent on the owner. That's an example of specialized in producing a unique result or outcome.
The last one is look or act differently than your competitors. Look or act differently than your competitors. One of the first ones that comes to mind here is in the marketing space, Gary Vaynerchuk is incredibly popular. Honestly, when he got in to the marketing space, man, he's just himself. He's laid back, but focuses tremendously on work ethic, work hard, grind. He swears, cusses, he's just himself, right? He was quite a bit different than a lot of people in the space at the time. So that's another example.
There are so many different ways you can differentiate. I hope these 13 have given you some food for thought. Focus on three to five somewhere in that range. Here's the other thing. If they're unique to you, great, but they don't all have to be unique to you as long as none of your competitors share all three to five of your differentiators. As long as your three are unique to you, right? Nobody has those three, you're in good shape. I'm telling you right now, if you focus on this and you get it in place and you promote your differentiators, it can absolutely transform your marketing because you become different. And when you're different, you are the only choice, you are the only game in town. Super, super important.
So I hope you found this helpful. If you need more help with this, you need some additional outside eyes, you can alway Schedule a Discovery Call with me over at rialtomarketing.com. The other tool that I always talk about on this podcast is over at RevenueRoadblockScorecard.com. If you want to know which of the nine revenue roadblocks are slowing down your growth, head over there, take the test. The scorecard takes less than five minutes and you'll get your customized results. If you want to accelerate growth, you got to remove your roadblocks and that is where you can find out about which of the nine are slowing down your growth. So hope you found this helpful. I really appreciate you taking the time and reach out if I can do anything to help. Until next time, take care.