In a world where everything is becoming commoditized, the key to success becomes differentiation. That's becoming more difficult to achieve, and one of the reasons is that it's relatively easy to put up a Web site.

An entrepreneur is looking to launch a subscription-based dental plan in Atlanta. An Internet search for "Dental Plans - Fee Based - Atlanta" produces 82,000 hits. There are major competitors and startups. Looking at subscription fees, they are all just about the same. Of course, most of the plans work with the same providers and the savings are the same as well. So what's going to make this entrepreneur's plan stand out and succeed?

Perhaps the biggest differentiation in building a business is service. That retains customers, gets them to buy again and inspires them to become apostles for you.

But what kind of differentiation helps you acquire customers in the first place if your product or service appears to be a commodity?

Offer—You can differentiate with your offer.

Sweepstakes are a means of differentiation that, in most cases, have no tie to the product or service. They'll raise your response rate considerably, but expect lower conversions and less loyalty.

Unusual guarantees are differentiating. If your competitors are offering 30-day guarantees and yours is 120 days, yours stands out. Lifetime guarantees are even more clutter-busting.

If your product or service is a commodity, your offer may involve a tie-in to a product, service or institution that stands by itself. Partnering with a Tiffany or Sharper Image could make a big difference in your success in acquiring customers.

You may also want to consider partnering with a nonprofit and donating a portion of revenue from every new customer to that nonprofit. That puts a "good guy" spin on the company, and it is differentiating. But it won't necessarily increase response rates. A direct mail test conducted several years ago for software relating to charitable deductions promised a contribution to one of three charities. This offer didn't bring in a single more subscription than the test cell without this offer.

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ABOUT THE AUTHOR

image of Lee Marc Stein

Lee Marc Stein is an internationally known direct marketing consultant and copywriter. He has extensive experience in circulation, insurance and financial services, high tech, and B2B marketing.