Unless you’re a serial entrepreneur, building a business is probably unlike anything you’ve ever done. As children, we’re told to sit still and behave. In school, we try to fit in in order to make friends, and to get passing grades in order to graduate. In many offices, we feel the need to keep our heads down and not rock the boat. But to run a successful business, you have to do quite the opposite. You need to stand up, stand out, and let everyone know that you are different.

Differentiation is probably the most important element of any brand strategy. No matter what product or service you are selling, you are competing with other businesses that are going after those same consumer dollars. In your mind, your offering is far superior to anything else on the market. But without clear and effective communication, the consumer is likely to think of your product as just another drop in an endless sea of purchasing choices.

Why differentiate?

Regardless of what line of business you’re in, you’re going to have competition. If you sell granola bars, of course, there are dozens of other brands of granola bars on the market. If you offer some type of therapy, there aren’t just a slew of other therapists out there, but also countless self-help books and online courses.

Even if you specialize in a very narrow niche or invent a new software system unlike any other, you still have competitors. I used to run a bamboo store, and it was the only bamboo store within a hundred miles. So I wasn’t competing with other bamboo stores, but in a way, I was competing with every other gift store in town. Your new software may have no direct competition, but what were people using before your software came along? Competition can come from anywhere.

How to differentiate your brand

When you set out to sell something, your first instinct is to demonstrate how your offering can outperform everything else. But even before you prove you’re better, you need to show the public how you’re different.

Every brand will claim to be better, but being different makes you memorable. And, in any case, it’s easier to show that you’re different than to prove that you’re better. Once you’ve set yourself apart, then you can proceed to display how the features and benefits of your products outshine anything else on the market.

So let’s look at a few differentiation strategies that you might use to distinguish your brand.

7 Differentiation Strategies

1. Carve a narrow niche

If you really understand the needs of your audience, then being different might be all it takes to fill a niche and connect with an eager audience. Customers, and humans in general, crave attention. So when you address a specific audience — it could be moms, firefighters, students, or any demographic group — those people will perk up and listen.

The last thing people want to read is a letter that opens with “To whom it may concern”. Yet a great preponderance of marketing and advertising feels just like that. They try to cast a wide net and include everyone as a potential client. But most readers, listeners and viewers will see the net and immediately swim away.

But when you niche down in order to serve a more specific group, then they feel like they’re getting the attention they deserve. You’re speaking to them, and they know it. Not only that, you can actually provide better service and create more satisfied customers by focusing on a specific group with specific needs. When you offer a one-size-fits-all solution, you really don’t fit anyone very well.

The further down you niche, the more personalized care you can provide. Instead of helping people who are overweight, consider focussing on older women who are overweight and have empty-nest syndrome. Instead of selling to men in general, maybe you should be targeting well-educated men who also go to church and vote Republican.

If you have an online business that’s accessible from anywhere in the world, you can get incredibly specific and still have thousands of loyal followers. If your services only reach a small community, however, then you need to be careful not to niche down too far.

2. Tell your origin story

People love stories. The human mind is hardwired to connect with stories, not with products. In branding, we like to make the customer the hero of the story. But some businesses have incredible stories of their own that are begging to be told.

What made you get into the business you’re in? Are you a doctor because your parents and grandparents were doctors? That could be interesting. Or maybe because your best friend growing up had a rare childhood disease and a wise and respected doctor from out-of-state came and saved her life in a dramatic episode that you’ll never forget. Now that could be very interesting.

Maybe you were in the Peace Corps in Africa and met a 100-year-old medicine man who taught you all about plants and herbs, so you decided to come home and open a tea shop or become an herbalist.

If there’s an incredible story about how and why you got started, that could be just the thing to define your brand and make you stand out in people’s minds.

3. Red carpet treatment

Every shoe store sells shoes, and after a while, most shoe stores sort of look alike. So you can niche down and specialize in shoes for student-athletes or for overweight women. Or you could provide every customer with an unforgettable experience. Make them feel like they’re not just buying shoes, but they’re having the time of their life.

Whatever line of business you’re in, there’s a way to step up your service in order to rise above the competition. If everyone else leaves a chocolate on the pillow, why not offer a 30-minute massage or a complimentary round of cocktails?

Refreshments are an easy way to please people. Don’t just offer coffee in the waiting room. Offer a selection of outstanding coffees and teas and exquisite pastries.

Most importantly, you need to know your customers, know what they love, and pamper them accordingly. Make them feel like they matter.

4. Take a stand

Like we always say, people don’t ordinarily connect and feel passionate about products, they connect with stories and ideas. There are a great number of causes that people can feel passionate about, including social trends and political movements.

This can be risky, because for every person that’s passionate about an issue, you’ve got someone else who’s equally passionate on the other side. If you have a crystal ball, you can make sure you’re on the right side of history. Or you can do your homework to gain a deep and intimate understanding of your target audience.

The best example of this was Nike’s campaign with Colin Kaepernick. “Believe in something. Even if it means sacrificing everything.” Nike took a big gamble with that message. But it takes courage to stand up for something, and people respect that, even if they disagree with your position. Some people swore they’d never buy from Nike again, but ultimately, the brand’s value soared.

Be clear about your brand ethics and values. When you’re open and transparent, it will pay off enormously. You’ll attract the right employees and you’ll attract ideal customers who will be more likely to stick with you. That doesn’t mean you have to be political or controversial, but know your purpose and follow your North Star.

Also see our in-depth article on Differentiating with Brand Essence and Values.

5. Pricing

When it comes to beating out a competitor, a lot of newbies will think to lower their prices. In some cases, this could be an effective strategy.

Take a look at the prices at three gas stations at one intersection. Maybe they’re all the same, but probably not. One of them might have lower prices to attract more cars, and it might work. Or maybe the flow of traffic makes it easier to reach the other stations, so one feels compelled to lower its prices.

Just remember, if you aim to succeed with lower prices, you’ll have to find another way to ensure that you’re satisfying the bottom line and not selling yourself short. You could easily end up in a price war, or what we call the race to the bottom. Eventually, you’ll have to cut back on services or quality or something. Or else you’ll need to develop a fantastic innovation to run your business more efficiently.

It sounds counterintuitive to some, but you can also differentiate by being the most expensive option on the market. If every other bottle cost $8-12 and your brand charges $20, a lot of people will take a pass. But a fair number of shoppers will gladly pay extra for the right to say that they bought the “good stuff.”

Wine is one industry that definitely has an element of “snob appeal”. But it’s certainly not the only one. When it comes to health care, for example, some people want to save money. But others will spare no expense. “I’m not taking any chances with my health”, or “Only the best for me.”

The unspoken assumption in all of these claims is that price equals quality. So don’t be afraid to charge more. But if you do, you’ll need to back it up with something of value, either real or perceived. Refer back to item #3, perhaps.

6. Keep it simple

We are living in the age of information overload, or what I call the era of overwhelm. We are bombarded with biased news, sales pitches, personality tests, and cat videos.

Who needs 8 different levels of membership to choose from? Who has the patience to spend more than 20 seconds on your website trying to figure out what to read and where to click? Who wants to sit in the lobby and fill out intake forms using someone else’s pen?

If you can offer a simple solution that makes the customer’s life easier, you just scored a huge win. You just gained a loyal fan, and they just gained an extra 90 seconds to look at cats dressing like RuPaul.

7. Humor me

Ever wonder about those car insurance ads with the ridiculously comical scenarios that have nothing to do with car insurance? What’s the point?

It’s quite simple. Insurance is one of the most boring things imaginable. But it must be profitable, because a lot of companies are selling it. And for the most part, there’s not much difference in what they’re selling, so they need to find some other way to stand out.

If you can make people laugh while selling car insurance, you must be doing something right. If you work in an industry that most people consider dull, what better way to win them over?

Dentists, accountants, and numerous other professionals might do well to differentiate by using the Jester archetype. But like every differentiation strategy, you need to be cautious. Always be aware of the negative connotations or unintended consequences. There are some businesses you really shouldn’t joke about.

Stand out and succeed

Ready to get started? Or curious to learn more? The Brand Strategy Workbook will give you a good starting point to answer some questions regarding your brand. And if you have any questions, feel free to reach out for a Discovery call or join our online community. It looks a bit confusing and overwhelming, but if you take it one step at a time, it all makes sense in the end. You got this! 

• Schedule a Discovery Call with Pacha
• Join our brand strategy Facebook Community: Balanced Brands
• Get professionally designed and curated content for your social media channels: Sign up for Social Stream

Dive deeper and take a look at these related articles.

• An Introduction to Brand Archetypes
• Adopting Brand Personas
• Speaking with Brand Voice
• Building Company Culture
• Issues with Ethical Marketing