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In the digital age, it's easier than ever to create a new brand, but making it stand out from the competition is an entirely different matter.

How do you create a brand story that gets attention and attracts the customers you want to connect with? In a nutshell: how do you differentiate your brand?

This article will explore some categories of brand differentiation and suggest a few tried-and-tested strategies your company can adopt to effectively differentiate your product or service and create a strong brand identity that potential customers will respond to.

What Is Brand Differentiation?

Brand differentiation is about grabbing the attention of potential clients and making your brand stand out in a crowded marketplace by communicating what it is that makes it unique.

Your differentiation strategy is an essential component of an effective B2B marketing strategy because it helps you cut through the clutter to connect with your target market.

The key is to identify what it is about your brand that sets it apart, and work that into your advertising campaign.

Effective differentiators depend a lot on context and business model, of course. What constitutes a meaningful differentiator in the beauty industry will be completely different from what does in B2B software services, for example.

Let's have a look at a few standard approaches to brand differentiation.

Types of Brand Differentiation

Overall, there are three categories of brand differentiation: vertical, horizontal, and mixed.

Brand Differentiation

Image: slideteam.net

  1. Vertical differentiation focuses mainly on quality and price. It is a good option if you offer a high-quality product or service that you pitch at a premium price point compared with the competition. Similarly, it works if you are competing on price and emphasizing the relative value of your product to potential customers.
  2. Horizontal differentiation focuses on anything other than quality and price. For instance, a differentiation strategy based on delivering outstanding customer service would fall into this category.
  3. Mixed differentiation refers to a differentiation strategy that relies on a mixture of horizontal and vertical factors. So, highlighting both the value of your product and the benefits of your customer service offering would be an example of mixed differentiation.

Developing a business strategy that works over the long term means building a relationship of trust with your target customers. And it's crucial to get it right from the start. That principle applies whether you're putting together an ad campaign for an e-commerce site or honing a SaaS marketing strategy targeting high-end enterprises.

Effective brand differentiation is vital, but it's important to go about the process in a smart way.

Brand Differentiation Strategies That Boost Customer Trust

Product Differentiation Factors

Source: actualtechmedia.com

Building a loyal customer base in a crowded market can be a challenge, but it's possible. Here are a few effective ways to establish powerful differentiators in a competitive marketplace.

Top Quality Products and Services

Obviously, the better your product or service, the easier it will be to sell—at least in theory.

There's no point attracting your ideal customers if you can't guarantee customer satisfaction, since they'll quickly leave you for a competitor.

Make sure you've nailed down all the basics, focusing on the following:

  • Understanding of customer preferences
  • Product design
  • Customer service capabilities
  • User experience

An emphasis on good design practices and offering good quality products and services is the first step in securing ongoing customer loyalty.

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What Is Brand Differentiation and How Does It Boost Customer Trust?

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ABOUT THE AUTHOR

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Nick Brown is the founder & CEO of SaaS SEO agency accelerate. He has grown accelerate from a UK-based agency to a firm that now operates across US, APAC, and EMEA.

LinkedIn: Nick Brown