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Where are you the leader of the pack?

 

A lesson in differentiation: Part 2.

(Catch up on Part 1.)

 

In our last Rover Treat, we introduced the idea of differentiation: defining what it is that makes your company, your product, your people – unique.  This month, let’s build an example to illustrate.

 

The company: Handyman Concierge: Tom Smith’s business offering a whole host of repair and renovation services, from plumbing to carpentry work. 

 

Tom’s point of differentiation:  He and his crew actually show up when they say they will, and they will set a specific time (not “sometime between 8:00 a.m. and noon"). If they don’t arrive on time, you get 10% percent off the price for every 15 minutes they are delayed. His prices are, on average, 10 to 15 percent higher than lower cost “specialists" (e.g., if you called ABC Plumbing). 

 

Tom’s tagline: On time or on our dime. 

 

Why this example?  Because Rover has anxiously awaited one too many repairmen only to be caught sleeping by the front door when they finally arrived two hours late. (Plus, the idea of chasing repairmen just gets Rover’s juices flowing.) This is a fictitious example, but a legitimate strategy that someone may actually be using, and here is why. Time is money. So Tom has built a strategy around something that resonates with many of us – and he can charge a premium for it because most of us recognize that if we have to spend even an extra 30 minutes away from work, we’re losing real money. 

 

Now here’s the key:  The on-time thing? It isn’t a hollow promise. Tom’s crew lives up to it – their scheduling strategy is built to support their promise. And so is their pay and incentive structure. Tom charges a premium that people are willing to pay. In turn, Tom motivates his team: if they are on time at least 95% of the time, there are bonuses. (And Tom is smart enough that he has also built in a quality checklist that actually makes everyone more efficient, but ensures that workers aren’t sacrificing quality just to be able to move on to the next job.)

 

Since Tom’s company is fictitious, we can’t report his actual results. But our point is that differentiation isn’t achieved just by coming up with a catchy tagline. It is achieved by identifying something that matters to your target audience and then delivering on it. 

 

Rover’s back with another tasty treat next month. Need help in the meantime? Email Rover.

 

Click here for other Rover Treats -- low cost sales and marketing tips to keep you leader of the pack in an economy that's gone to the dogs.