Monday, May 21, 2007

Why You and Why Now?

Those are words that might strike fear in the heart of normal people. It doesn't have to though. If you take time to know what your fit is and what makes you different, then this will be just a normal every day conversation. Over the years I have done lots of research on this topic of "differentiation" and my favorite way to describe it is this way. There are three ways companies can differentiate themselves.

  1. Cost - They are the cheapest in town (when you think low price I am sure a company pops into your mind immediately.
  2. Technology - You can have cutting edge technology, the latest and greatest. Usually this is not low price. (Again, if you think about it you can come up with a company that is known for its technology savvy.)
  3. Customer Intimacy - This is when you take the time to really service your customers, get to know them and stay in touch with them, even if they don't buy right away. (This is how a lot of the VIP programs were developed, to learn more about their customers so they can service them in a meaningful way.)

So the question is do you want to be known for low price, high tech/expensive or customer intimate/driven? Once you make that determination, then you can put your game plan together.