The 6 mistakes companies make trying to differentiate
There aren’t many B2B companies that wouldn’t be delighted with a more differentiated brand position.In an era where markets and technologies are zippily becoming commodities, the ability to authentically (and persuasively) spotlight a corporate difference remains a salivating need.
Why is standing out so difficult? Putting aside (major) issues like inferior products or insufficient market demand, most companies repeat the same common mistakes:
- They look inward, not outward – Differentiation isn’t about “making up” your company’s difference, it’s finding what objectively, authentically sets it apart. Understand what your customers/consumers want and discover how your product/service fulfills them (or not).
- They refuse to focus on one thing – As companies attempt to zero-in on their customer-centric benefits, they compile lists of attributes cutting across multiple vertical industries and product offerings. But they fail to whittle them down to a believable, sustainable advantage. Less is more – standing for one thing creates remembrance.
- Their messaging is neutral – Most B2B companies sound remarkably alike. They rely on an impersonal second-person voice; focus mainly on capabilities and product attributes; and share too much detail. What happens? They convey a competent, but neutral, persona.
- They aren’t bold - This philosophy of brand neutrality pays homage to the God of Safe. Don’t challenge (Yikes!). Don’t speak colorfully (what if it turns someone off?). Never take risks (lest you offend). Don’t reveal human emotion (we’re a company!) Avoid expressing visually vs. textually (it’s so much work!) Recite facts vs. telling stories (safe!). Always be business-like, never lighthearted (they’ll think we’re not serious!).
- They shy away from the competition – This one always surprises me because at the C-level – and in the sales trenches – B2B companies constantly sweat the challenges of competition, winning and losing deals. But instead of acknowledging the existence of competition, most companies shy away, acting like theirs is the only candy in the shop. Facing up to the competition doesn’t mean companies have to name names – they can also successfully communicate differences indirectly.
- They don’t prove it – it’s one thing to convey competence; it’s another thing to offer up proof. Getting customers to talk about your company/service in first person language has a profound impact: it makes prospects and customers relate because it’s through their lens, not yours.
Very well said and on point. It is very hard for many firms to differentiate, especialy in our segment which is professional services. I even have some data that strongly supports you main points. We studied a group of professional services firms that were growing 9xfaster, were 50% more profitable yet spent less than average on sales and marketing. One of the important differences was that the high growth firms were three times more likely to have a strong, believable differentiater. It pays to differentiate. If your interested in following up the data is available at www.SpiralingUpBook.com (no charge).
I also thing you did a nice job of pointing out some of the underlying reasons firms fail to differentiate.It feels safer to be one of the crowd.
Nice post. Thanks...lwf