October 3, 2020 4 min read
The opinions expressed by the entrepreneur’s contributors are their own.
Submit your product or service in a search engine and you could get millions of results. The truth is that the market is oversaturated in some areas like finance, wellness, and digital retail.
It is difficult to stand out in these spaces. Whether through lower prices, higher quality, or simple convenience, you need to find ways to position your product as a better choice than others in the room.
Not sure where to start? Here are five strategies to differentiate yourself in a crowded market:
1. Know your competition
All of these search results are not bad news for you. Use them to your advantage by clicking on the top hits. You are your competition, after all.
Research features, price points, and return policies. Be mindful of branding and messaging. See if you can find information on their suppliers and procurement strategies. Scroll through social media, paying particular attention to five-star and one-star reviews.
Related: What You Need To Know About Your Competitors To Beat Them
Anything that consumers don’t like about your competitors is a chance for you to do better. What your competitors do particularly well is a basis for your products or services.
2. Carve out your niche
There are an infinite number of niches in every market. Some landscaping companies specialize in lawn maintenance. When it comes to lawn care, some providers stick to either B2C or B2B services.
In a crowded room, it seems like every niche is already occupied. If so, don’t try to compete directly. Instead, create your niche.
Related Topics: Understand the concept of “niching down” for aspiring entrepreneurs
Dating sites have done this well. VeggieDate was launched as a website specifically for vegetarians. Geek2Geek specializes in connecting proud nerds. Likewise, people are brought together according to their book taste.
If you’ve already launched your product or service, a pivot may be required. Do your research before investing in remediation. Is the niche big enough to support your business? What are the weak points of these consumers? Before you dive in, make sure that you can profitably hit them.
3. Narrow the channel
How is your product distributed? In some markets, complex supply chains mean that products go through half a dozen hands before they reach the end user.
Eliminating some of the middlemen not only allows you to value your product more competitively, but also allows you to build closer feedback loops with your customers. Do a thorough supply chain review to look for steps that you can cut out of the chain.
Some companies, like Tower Electric Bikes, are completely eliminating middlemen. Because the electric cruiser bike market is so busy, Tower is skipping bike stores and shipping directly to the consumer. While consumers have to assemble the bikes themselves, they save money and get home delivery.
4. Set up your street (or online) credit
In a crowded market, credibility is everything. Consumers just don’t have time to dig into a thousand different brands and choose the brand they know and trust.
Building a credible brand is a marathon, not a sprint. Monitor your social media to see what customers are saying about your product. Read every rating and rating you receive. Pay attention to what customers like and dislike about your product, customer service, delivery, and everything else.
If you see negative reviews, don’t get mad. Then make changes to address those concerns and highlight your best features. Responsiveness increases consumer confidence and creates positive word of mouth for your brand.
Related: 10 Secrets To Building Trust And Credibility With Your Customers
5. Don’t just make a sale. Build a relationship
Another reason branding takes time? Building meaningful customer relationships doesn’t happen overnight.
Establishing real customer relationships is like cooking an authentic dish: the right ingredients – including great customer service, a quality product, and a dash of personalization – need to be appropriately combined and patiently cooked.
Personalized products and services are also possible online and on a large scale. Shutterfly stands out from photo print pages simply by using an algorithm. After photos with faces are identified on the user’s phone, the smartphone app places them on products such as mugs that can be purchased directly in the app.
Related: The 3 Big Problems With Personalization In Online Sales And Marketing
Regardless of the density of your market, it’s never a stroll in the park to differentiate your company from its competitors. Do your homework to build old customer loyalty and help new customers make choices.
Use what you learn to perfect your product and outperform your competition. This is good advice for any business, but it’s the secret to success in a crowded market.
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