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Kevin C. Whelan

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September 3, 2021

What is your differentiation strategy?

Last weekend, my wife bought a bike from a store that had an interesting differentiation strategy.

Their main difference was that they offered free lifetime tune-ups for any bikes sold from their stores.

Apparently no other bike store did that. Service revenue can add up, so it’s no surprise others weren’t giving it away.

I like this approach for a few reasons.

1. It brings people back

As long as someone in your family owns a bike from that store, you’ll always be going there for tune-ups, accessories, repairs, or even new bikes when the time comes.

2. It adds a lot of value for low marginal cost

It costs very little to tune up the bikes when you already have the staff and overhead to cover it. And yet, it creates a lot of value for the customer.

3. My favourite: it closes the deal

A good differentiator helps you win more deals. This one closes deals for bikes that range from $500 to $5,000+. That’s no small prize.

As a consultant, your vertical or horizontal positioning is one of the best differentiators you have. The less interchangeable you are, the more likely you are to stand out and win deals.

There are other ways to differentiate as well, such as price and location, but those aren’t ones you want to compete on if you can avoid it.

Regardless of which approach you take, without a differentiation strategy, you’ll never be as successful as you could be.

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