Yes, Your Company Is Different
Differentiation has long been a watchword in business. But recently, amid pervasive disruption and fierce competition in many markets, our clients and prospects seem to be more concerned than ever about differentiating themselves. The main worry is that they will become commoditized and fall prey to eroding margins. Related worries are that the speed at which business is done now means commoditization and diminishing profits are likely to strike fast and hard and that no defense exists to fend them off.
We hear this concern expressed in two basic ways:
- Our company isn’t all that much different than those of our competitors.
- The market doesn’t understand the value our differentiation brings.
Two different problems requiring two different solutions.
Good News #1: No matter what you think or what prospects (or maybe even customers) tell you, your company is different. In more than 20 years of helping businesses and professional services firms grow the topline, we have yet to come upon a viable business that cannot differentiate itself in meaningful-and revenue-generating-ways. The problem usually is that executives either don’t know how to identify points of differentiation in their companies or don’t know how to develop or create them.
Good News #2: Even companies that do know how they’re different and better too often don’t know how to communicate the value of that differentiation in the market place. And that means, of course, they can’t get paid as well as they ought to get paid for the value they provide. Companies and firms whose business developers do know how to communicate their value not only sell more of their product or service but they can command higher prices.
So, at this point-right now-take a moment to answer a fundamental question:
Which problem is bigger:
- Your company truly does not create differentiated value and is, in fact, a commodity or close to becoming one.
OR
- Your sales force and other business developers don’t know how to communicate the value your company in fact offers and get paid for it.
Have you decided? Great, then read on. We have solutions that, in many cases, go hand in hand and reinforce each other to achieve stronger results.
First Problem: Really, our company just isn’t all that different. Well, first of all, we don’t believe it. But if you and your team do, it’s a problem that has to be solved sooner. Here are steps to take yourself, or implement with the help of outside professionals, to uncover differentiators that already exist or identify areas that have potential to become differentiators. We’ve guided clients down this path to increased sales and stable or improved margins. We know it can work.
- Develop a routine that gleans fresh information from the sales force. Doesn’t it just make sense? You want to help your customers and prospects. Well, who has the most contact with those groups? The greatest chance of learning about new problems, trends, and changes in direction? The sales force and other business developers, of course.
- Understand which market leadership discipline matches your company. And then own it.
The leadership disciplines are customer intimate , product leadership , and operational excellence (low-cost provider). No company can excel at all three; few can excel at one and also even be very good at another, so it’s essential to invest resources in the right one.
- Perform formal market research to see what the market likes-and doesn’t like-about your business. In this step, you’re trying to learn two things, as specifically as possible: why customers do buy from you and why prospects don’t. Which needs does your company meet exclusively, which do competitors meet exclusively, and which does no one meet? We’ve found that managers know only about half the reasons customers choose their company over competitors-and are often surprised to learn about the others.
- Explore, individually, how your company’s attributes or skills might contribute to differentiation. Time, for example, offers several possibilities-faster or more accurate delivery times, more efficient product development or time to market, taking the time to solve customer problems completely and in a way that makes customers happy they called. And then there are physical attributesor functions to consider: location, product size, type and quality of materials or finishing, documentation (to satisfy regulators, for instance), project management, and others.
These aren’t the only ways to determine how your company is different, but they’re a good start. To learn more, just give us a call at 847-446-0008.
Second Problem: We don’t know how to communicate our value in the marketplace. This problem is all too familiar. The solution comes in two parts known as marketing and selling.
Strong marketing that targets the right customers with the right messages will increase both your company’s visibility in the market place and its credibility. Then, when “sales” makes contact in whatever form-face-to-face, on the phone, on-line, even with good old snail mail (still effective, by the way)-prospects will be much more likely to recognize your company’s name and to respect its work.
To compete in the tough business-to-business arena, your salespeople and other business developers must be equipped with superior consultative selling skills and a sales process customized for your company and industry. The very best salespeople-the 20 percent who consistently bring in 80 percent of all new business-in fact behave differently than their less successful counterparts. Our consultative selling course, FOCIS®, has helped hundreds of salespeople and professionals develop the skills and the behaviors of the best in the business. The customized sales process they have developed during the FOCIS® course has enabled them to use their new skills to sell more and shorten the sales cycle.
Marketing and sales are both necessary to growing the topline: “Marketing gets you to the door. Selling gets you the deal.”
If you’d like to discuss your business growth goals and challenges, please call at 847-446-0008 or e-mail pkrone@productivestrategies.com.
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