Why are customers buying (or not buying) from you?
This is a question business leaders rarely ask themselves until they realize their customers suddenly aren’t buying from them anymore. Wouldn’t you like to know why, and before it affects your bottom line?
In today’s world, where even groceries can be bought online, customers always have a choice. If customers are buying from you, they are doing it for a reason. And those people who aren’t buying from you? They’re doing it for a reason, too.
You are building your customer base around what you do differently (or say you do differently) from your competition . What you’re doing differently is your organization’s key differentiator, and that can create a unique and substantial market space for your organization.
Knowing how your business is similar to, and unique from, that of your competitors is the first step in creating a lasting hold in a market where the number of choices available to customers is always growing.
Identifying your key differentiators
The process of identifying and capitalizing on your key differentiators begins with knowing your competition as well as you know your own business. From there, you can conduct a critical comparative analysis to identify overlapping and unique business characteristics.
It can be difficult to conduct an in-depth analysis of your competitors’ business practices due to a lack of time and resources, difficulty in obtaining information about a competitor’s inner-workings, and your own pre-conceived biases regarding their business or your own.
If you’ve never conducted this type of analysis before, working with an experienced firm to do this for you can be a great investment.
Why your marketing messages are not necessarily your key differentiators
While the marketing message you share with potential customers is often a differentiator, it’s important to note that this isn’t always the case. A good in-depth analysis should make a distinction between the marketing message you send to customers and the key differentiator behind that message.
For example, price is a common marketing message companies use to attract customers. But if you’re operating on a sound business model, price itself is not the key differentiator.
The differentiator is actually the operational efficiency that is allowing you to sell the product at a discounted price from your competition, while still acquiring the same or similar profit margins. For a great look into this idea, check out this Time magazine column on how Dollar Tree is able to sell everything for a dollar (it’s not always as cheap as you think!), and how large retailers like Walmart are starting to encroach on this market space.
A critical thought on messaging and customer trust
If you say you’re doing something, it’s important that you actually are.
When a customer buys from you, they are buying your brand promise as much as they are buying your product or service. False marketing claims, like the one Lights of America, Inc. made regarding the life expectancy of their LED bulbs or those claiming gDiapers were 100% biodegradable, may make you few extra dollars in the short run, but your savvy customers will catch on.
Not only did these two cases and many others regarding false eco-friendly marketing claims cost the companies millions in fines, but breaking your customer’s trust will cost you far more business long-term than you ever gained in the short-term.
Why silence isn’t golden
Are you doing great things with your business that truly are unique, but not telling anyone or including it in your marketing messages? Well, that’s even worse.
There are no “best kept secrets” or “stories waiting to be told” (two things the MAC hears frequently from new clients) in the business world. These are just missed opportunities to grow your business and spread the word about the great things you are doing.
How safe is your differentiation?
Hopefully, enlisting an expert to help you with this analysis leads you to find that you are well differentiated from your competition. But even so, don’t relax or think that automatically means you’re safe.
The only way you’re truly safe is if your differentiators are difficult to replicate or legally protected. If your key differentiators can be easily copied, then your business is just a prime target for a savvy competitor looking for a larger chunk of the market.
Patents for unique products or technologies are one great example of a differentiator that’s difficult to replicate, but remember that your differentiator can just as easily be a unique process or business model that allows you to operate more efficiently than your competition. This great seafood restaurant based in Manhattan has differentiated themselves by developing a unique but difficult to replicate supply chain that ensures they always have the freshest lobster.
Don’t wait until they say goodbye
If you don’t know why your customers choose to buy from you, don’t wait until they start going elsewhere to figure out what drives them to make the purchasing decisions they do. Whether internally or with the help of an expert, take the time to figure out what makes your business unique in the market, and tell the stories that help you to capitalize on those key differentiators. Your business and your customers will thank you for it.
This article was originally published on LinkedIn Pulse.
