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.
Image: slideteam.net
- 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.
- 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.
- 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
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.
Showcasing Expertise
In some areas of business, building authority within your niche is the best way of boosting customer trust. When you demonstrate excellent thought leadership in your space, you engage prospective clients and keep them coming back for more.
This approach can work in any sector, but it's particularly relevant for B2B brands. In competitive industries, such as digital services, building a marketing campaign around informative materials like whitepapers, in-depth blog posts, and e-books on topics of interest to your target audience can be exceptionally effective in establishing your brand as a business leader. Offering these informative materials as digital downloads can further enhance your brand's reach and provide an easy way for customers to access and benefit from your expertise.
The make-up of your target market should set the agenda here, but it's also crucial to consider what the competition is doing, since you'll need to make sure to offer something your competitors don't.
For instance, if you sell high-end Cloud software to businesses, you should first carry out a SaaS SEO competitor analysis to determine the best strategy for getting your content ranking above your competitors', then create material to suit.
Pricing Strategy
Pricing is often a tricky subject, but it can be critical in service and product differentiation. Rethinking your current pricing model has the potential to improve your connection with customers and drive business growth.
An example might be moving from a one-time-only to subscription-based business model. That's now a well-established practice in service businesses like Cloud software, but it can also work well for B2C consumables like meal-kit services or personal care products.
If you try this approach, provide your customers with flexible options for altering or canceling their subscriptions; no one likes feeling trapped, and making it difficult to cancel could lead to a sharp increase in customer complaints.
Partnerships With Trusted Brands
What better way to boost customer trust in your own brand than by linking up with a trusted partner to collaborate?
Image: collidu.com
One of the biggest advantages of this approach is that you can leverage the strengths of both parties to create something unique, which is exactly what you need to create strong brand differentiation.
Another benefit is that this puts your offering in front of a new audience—your partner's current customers. It's a good way to expand your target market quickly to help you reach your overall business goals more easily.
Excellent Customer Service
Whatever marketing strategies you come up with, delivering exceptional customer experiences will always serve you well, helping you achieve that elusive competitive edge. And it all starts with understanding customer preferences and expectations, and continues all the way through the customer journey.
Client satisfaction is vital to building trust over time. Aim to foster a customer-first company culture by supporting your team to go the extra mile in making the customer experience extra special. Make sure to acknowledge and reward outstanding service to encourage more of the same.
Make Your Brand Stand Out
Brand differentiation matters. In today's highly competitive business world, standing out from the competition takes more than simply being good at what you do. You have to go one better to truly engage with your target audience.
The good news is that although it's a challenge, it can be done. If you follow some of the strategies outlined here, you'll be well on your way to building trust in your brand – and that's the best way to create a solid foundation for excellent, long-lasting relationships with your customers.
More Resources on Brand Differentiation
How to Use Customer Experience to Differentiate Your Brand
Differentiation and Positioning: What Does Your Business Stand For?
