Retail Observer

RETAILOBSERVER.COM FEBRUARY 2019 78 T he Business Dictionary gives an interesting definition of "differentiator": Unique features and/or benefits of a product, or aspects of a brand, that set it apart from competing products or brands. The concept of "product differentiation" was first mentioned in economist Edward Chamberlin's Theory of Monopolistic Competition, published in 1933. By now, I imagine you're yawning. But I think it's important to note that differentiating our products and ourselves from our competitors is not a new idea. Think of your primary reason for starting a business. Chances are, you're good at something, and you believe you're better at it than anyone else. And it's probably true. It sure is true for lots of other types of businesses. For example, most small- to mid-sized law firms aren't general law firms. They specialize in something, be it auto accidents, divorce, civil disputes, work injuries, or estate planning. Many local auto repair shops narrow their expertise to foreign cars, luxury vehicles, tune-ups, transmissions, or alignments. Perhaps most of those businesses would be capable of working in broader areas, and reasonably good at it, given enough time and money. But that's not where they excel. And they don't market themselves outside of what they're really, really good at doing. As appliance service companies, we aren't all that different. Maybe we advertise repairs for residential major appliances, and maybe we list a few brands where we have special expertise. But is there something even more unique about us? What's our real specialty? These days, we're pretty much all claiming to offer repair services with the best customer experience at a fair price (not the lowest price, let's be clear). And it's obviously not enough, because it doesn't set us apart from our competitors. Customers have expected those levels of service for as far back as anybody can recall. And almost every company has proclaimed them since the day customers were invented. But back to your successful business, which you've built upon your clearly defined product offering, of course! You're pretty sure you have a handle on why your phone keeps ringing. However, if you truly want to know the most important drivers that are keeping your customers calling, you'll need their feedback. What they'll say may surprise you. You may discover that your concept is just one piece of their motivation. Or their answers might cover a relatively small part of why you went into business, or the face that you've chosen to present to the world. It's important to incorporate your customers' feedback into your business's definition, so you can work at it, perfect it, and market it. That's when your business will really become uniquely meaningful to your community. Imagine your customer's new perspective: "This company can fix most anything, but if you have Brand X they're the best in town." Or, "I've had a couple of other servicers out for different things, but I only trust my washer and dryer to Company Y." Now you have a valuable differentiator that is specific and easily understood by consumers. (Also manufacturers and third-party warranty companies.) You've now got a differentiator that's strong enough to drive the customer's purchasing decisions and tie into your brand image. No one can mistake you for anyone else. Having that differentiator is fantastic, but remember, remaining competitive in today's quickly changing business environment and customer loyalty battleground will mean that you won't be able to rest on your laurels. You can set yourself apart in the short run with just one differentiator, but your competition will take notice and work hard to take the wind out of your sails. So, once you've mastered the first differentiator to the best of your ability, it's time to start applying the same commitment to the next one. Just make sure you don't ease up on your dedication to the original one, since it's what got you here. Finally, if you've already mastered the differen- tiator game, great! Share your journey with other business owners in your peer group. Because you are in a peer group, right? Ben Luther, Manager Ortega's Appliance Service, Albuquerque, NM S E R V I C E D E P A R T M E N T RO WHAT'S YOUR DIFFERENTIATOR?

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