© 2004-
Differentiating a Business Today is Harder than it’s Ever Been.
It’s difficult for business owners to do, and hard for buyers to discern the differences. As a result, many entrepreneurs struggle to achieve a sufficient level of leads and sales—the “revenue engine” for their business. Here’s what they struggle with and why.
Marketing wasn’t always such a challenge. Go back to before 1990 or, in some industries, before 1980. Let's call this the "days of simple selling." The marketplace was a lot less crowded, buyers had less information, and purchasing options were more limited. For business buyers and consumers alike, making choices was a simpler, easier process. Because of this, the seller had more power. Business strategies generally focused around sales and how to sell more effectively than the competition.
Why Everything Changed in the Last Decade
Key events occurred that changed the nature of the marketplace forever:
- Technology Revolution-
up firms as entrepreneurs broke off from large companies to pursue their own ventures.
- Explosion of Businesses-
The overall complexion of American business evolved from fewer large companies to many, many smaller businesses. This reached such a level that, in 2002, the birthrate of new businesses finally out- paced the number of babies born in North America - 4.76 versus 4.57 million. (US Census and Statistics Canada)
- Arrival of the Internet-
- Media Proliferation-
Now There is a Deafening "Noise" in the Marketplace
The result of all these trends is that products and services have become "commoditized," where multitudes of providers offer essentially the same thing. Worse yet, the overwhelming clutter from so many businesses shouting their message numbs and confuses buyers, who tune out most of what they see and hear.
Even when they do pay attention, buyers disbelieve the general, institutional statements most businesses use in their advertising. Everyone's claims sound alike. Do you believe statements like those below when you hear them? More importantly, do these claims differentiate companies, or does it just sound like the noise everyone else is making? You decide.
"We're the professionals"
"Our prices are lower"
"We're number one"
"The best selection"
"Quality customer service"
Yadda yadda yadda…
This Creates a "Confidence Gap" Among Buyers
The raw number of businesses, the overwhelming volume of commercial messages plus business's over reliance on generalities in marketing has driven a wedge between buyers and sellers. We call this the "Confidence Gap." Strictly defined, it is the buyer's inability to determine whether any of the providers are any better or any worse than any of the others.
Faced with more choices and mostly non-
In short, the power has now shifted to the buyer. That’s the new paradigm; Sellers who want to succeed must learn to narrow their prospects' confidence gap. The problem is that most businesses don't realize this or know how to do it. They continue to waste marketing dollars on the same old approach, even though the returns are worse than ever.
The “Fix” for Small Businesses
The best way to overcome the confidence gap is to differentiate using specific information that educates prospective buyers on how and why you are the solution to their problem. This means an immediate stop to institutional marketing that doesn’t resonate with today’s buyers. It also means using compelling copy that gets attention and provides buyers with what they’re looking for.
The Problem with Marketing Today...
And How We Fix it