Find out what a competitive differentiator is and how to identify one for your business
Making a business survive amid all the competition that exists in the market is quite a challenge for entrepreneurs , isn’t it? In this scenario, having a competitive advantage is essential not only for the company to remain active, but also for it to be able to show good growth.
After all, you need to find ways to draw consumers’ attention to your products and/or services if you want them to give preference to your business. With so much competition, you can’t passively wait for customers to knock on your door.
With this in mind, we prepared this post to help you better understand what a competitive differentiator is and identify or even develop one for your business to stand out even more. Are you interested in this content? Good reading!
What is a competitive differentiator?
In a very simplified way, we can say that a competitive advantage is what makes your business unique and superior to its competitors . Do you know that reason why a consumer insists on purchasing a product or contracting a service with a certain company, and not with another that offers something similar? So, this is what we call a competitive differentiator.
It is worth noting that we are not talking about offering a quality product or a well-done service — because this is just the duty that every company has to fulfill. Remember that your establishment is probably not the only one in the market where consumers can get the products and/or services they need.
A competitive differentiator is, as the name suggests, that “something more” that takes your business to another level and wins over customers. If it is a differentiator, it is because it is a characteristic that is difficult to copy , that is, it is something that consumers will not easily find in the competition.
It is also interesting to understand that the competitive advantage is not necessarily something revolutionary. Often, it can be something simple, but rare, that customers recognize as a benefit and that, as a result, gives the company a competitive advantage in the market.
How important is competitive differentiation for a business?
When consumers perceive a certain product or service as different from others available on the market, the memory that remains after the purchasing experience is that the business offers something superior. The tendency, in this case, is for them to buy again or recommend the company to other people.
Therefore, having a competitive advantage is essential to achieve customer loyalty and also to transform them into brand promoters . This makes the business stand out among competitors and helps increase sales , generating more revenue and, most importantly, profit.
This entire process is what allows the business to remain firm and still grow. By earning more thanks to the competitive advantage, you can invest in new products and equipment, in addition to having more chances of attracting partnerships and even investments for your venture.
How to identify a competitive differentiator?
Since the competitive advantage has such an impact on the company’s success, it is important that you know how to identify your business’s advantage — and, if it doesn’t already exist, develop one as soon as possible. We’ve compiled a list of helpful recommendations below.
Analyze your business
The first step for you to discover what your company’s competitive advantage could be is to carry out a detailed assessment of your products and/or services, as well as the customer service process.
It is important that this analysis is done in a very realistic way, trying to understand both the strengths of the business and what the weaknesses are.
In this process, it is worth paying special attention to your business performance data . In the list of best-selling products, for example, you may discover that they have something in common that catches the attention of customers, and perhaps this is their biggest differentiator.
It is also interesting to take into account that service is a differentiator that the public tends to value highly. If you have many loyal customers, it is quite possible that this will be a competitive differentiator.
Evaluate your company from the customer’s point of view
For an even more complete analysis of your business, it is essential that you understand what consumers’ view of it is. To do this, you can find out what people say about your company on social media, for example.
Furthermore, it is a good idea to carry out a satisfaction survey in the after-sales phase. Through a few quick questions, you can find out which aspects of the purchasing experience were positive and whether the customer intends to do business with your company again.
Observe the competition
Since you are precisely trying to find the competitive advantage of your business, an important part of this journey is knowing the differences from the competition. Therefore, also start observing what is said about other companies that operate in the same market niche as yours.
Find out what customers praise most about your competitors, as well as what they criticize. This way, you can identify what the public wants , but has not found, and work to ensure that your company meets this need and has a competitive advantage.
Consider scalable differentiators
In your analyses, you may find several strengths of your business that can be considered differentiators. However, a competitive advantage must be something that is scalable, that is, something that you will be able to maintain in the long term , even if the company’s demand increases. Observing this aspect will help you identify what your true differentiator is.
With all these tips, it has certainly become easier to find the competitive advantage that will help your business stand out in the market. Now, just get your hands dirty and start working on it to develop your company’s strengths and use them to attract and retain more and more customers.