How Not What: The Service Business Differentiation Formula to Crush the Competition
In the crowded marketplace of service-based businesses, standing out can feel like an insurmountable challenge. Whether you're an accountant, contractor, IT specialist, lawyer, service provider or consultant, the reality is that from the perspective of the average prospect, one firm often seems indistinguishable from another.
Many service businesses rely on common selling points like quality work, customer satisfaction, free consultations, and fair pricing. While these are important, they have become mere expectations rather than unique differentiators.
To truly set your business apart, you must shift your focus from WHAT you do to HOW you do it.
This article, "How Not What: The Small Business Differentiation Formula to Crush the Competition," will guide you through my approach, helping you capture the attention and wallets of your ideal prospects and clients.
Understanding Differentiation For Service Businesses
You may not know this, but when you strive to be all things to all people, you end up making everyone else stand out but yourself. The world doesn't really need another accountant, plumber, cleaning company, or small business of almost any kind. So if that's what you are, you better find a way to stand out that's based on a sound strategy.
This is one of my favorite elements of marketing. You have to find or create a difference—the way you're going to talk to that ideal client about how your business is different from everyone else who says they do what you do, make what you make, or provide what you provide.
Experience tells me that for some of you this is going to be a challenge, because I'm going to ask you to really look hard at what it is that your clients value; what it is that truly makes you different. And again, it's not fair pricing, or a quality service,. Those are expectations in the eyes of many clients, so we have to dive deeper into something that an ideal client truly does value.
True differentiation in the context of service-based businesses is not just about listing the services you offer. It’s about creating a unique identity and experience that sets your business apart from the competition. It means implementing unique processes, delivering exceptional customer interactions, and providing a service experience that your clients can’t find anywhere else.
We have to think in terms of the primary reasons for developing this part of our strategy:
- Eliminate competitor comparisons.
- Position the business in a different context.
One of these two things (and in a perfect world, both) need to come together as the way in which you communicate how you're different. Eliminating competitor comparisons means you do something that is so different you really can’t be compared necessarily to them. This could be because of the way you sell, how you structure offerings, or how you deliver what you do. In many ways, this makes you the obvious choice provider.
The second piece is to focus on positioning your business in a different context, which changes how an ideal client thinks about your business so that the sales conversations you’re having are completely different from everybody else’s in the market.
3 Examples Of How To Successfully Position Your Business in a Different Context
Example #1: Imagine you run an HVAC service company. Most HVAC companies might emphasize their technical skills, experience, and competitive pricing. Instead, you decide to position your business in a different context by focusing on how you deliver your service. You market your company as the HVAC service that guarantees punctuality and cleanliness.
You make it a point to highlight that your technicians always arrive on time and clean up thoroughly after the job. This simple yet effective differentiation changes how clients perceive your business—they know they can rely on you not just for your technical expertise, but also for a hassle-free and respectful service experience.
Example #2: Similarly, consider a law firm. While many law firms might focus on their legal expertise and years of combined experience, your firm stands out by emphasizing timely communication. You market your firm as the one that always returns client calls promptly and keeps clients updated on their case status regularly. This approach reassures clients that they will never feel ignored or out of the loop, setting your firm apart from others that may not prioritize client communication as highly.
Example #3: If you run a consulting firm, instead of just highlighting your problem-solving skills, you could focus on how you help clients see their challenges from a new perspective. You position your firm as the one that not only provides solutions but also transforms the way clients think about their business problems. This unique approach helps clients feel more empowered and engaged in the problem-solving process, making your firm the go-to choice for innovative consulting.
The world, or at least a market segment, will always need the accountant, contractor, or service provider that does business in new and different ways—ways that matter to a specific market.
Differentiate Your Business in a Way That Your Customers Care About
For owners and CEOs of service businesses, a key element that must get attention is how you differentiate your business in a way that your customers value and care about beyond your services. It’s not enough to simply provide the core services that are expected of your industry. Differentiating your business in a way that resonates with your customers is crucial for success.
Let’s say you own a home services business. Your potential customers will automatically assume that you know how to do the tasks they hired you for: removing trees, repairing HVAC systems, unclogging toilets, mowing lawns, and installing new doors.
However, from my marketing experience, simply doing the core service doesn’t address what potential customers truly care about.
For most homeowners, their biggest problems with a home service provider go beyond the basic services offered. Homeowners hate long service windows and unreturned phone calls. They dislike it when technicians leave behind a mess, surprise them with unexplained fees, or make payments difficult by only accepting checks. These are the real problems your clients face.
Therefore, your differentiation message should not be, “We know how to mow your lawn, remove trees, unclog your toilet, and repair the HVAC system.”
Instead, it should be, “We explain all fees upfront and show up on time,” or “We return all calls promptly and leave your home cleaner than when we arrived.”
How to Uncover, Claim and Communicate Your Differentiation
Before I delve into these three aspects, it's crucial to understand it's your decision to compete on price. Small businesses that choose to compete on price often say, “we all offer the same thing” or “there’s no secret to what we do”. However, therein lies the issue. No company does everything the same, especially when you dig deep into how they deliver their service.
Effective marketing that crushes the competition must involve (1) uncovering, (2) claiming and (3) communicating some aspect of your service or firm that is both unique and valued by your ideal clients.
The best way to approach uncovering the thing you do that is wanted and valued by ideal clients and making that a central part of your marketing, sales, and service is to listen really, really well. Typically my marketing firm has 3-4 ways to approach this but we'll cover one in this article.
Get a list together 7–10 of your best clients and interview them.
Here are a few of my favorite questions:
- Why did you choose us in the first place?
- Why do you stay with us?
- What do we do that others don’t?
- What could we/our products/services do for you that we don’t?
Take Note: you’re not looking for quantitative data here, you’re looking for stories that offer insight into what really makes your business different. From experience, you will need to use follow-up statements such as — “Awesome, we provide high-quality service, what do you mean?.”
Let’s say you're a service contractor, and from these interviews, you uncover that what your clients truly want and value are your firm’s quick response, expert knowledge, and ability to explain what happens next.
While it may be tempting to focus on your pretty truck wrapping, the finest tools, and quality work, the real opportunity may be in claiming that and aligning marketing, sales, service, billing, support, and every department's actions to communicate that differentiation.
A uncover, claim and communicate strategy around your quick response, expert knowledge, and ability to explain what happens next, with an integrated business function approach, might include:
Marketing
- A website with clear call to actions that explain what happens next
- A guarantee message focused on quick responses or no surprises
- A blog focused on sharing expert knowledge and insights
Sales
- A sales process that clearly identifies what next steps will always be
- A prospect intake form that creates the opportunity to share expert knowledge
- An internal 12–24/hr email or phone call reply guideline
Service
- Before any service is performed a clarity chat with the customer must happen
- Any problems or issues will be reported quickly on spot or as encountered
Billing
- All charges must be communicated and clearly defined on the invoice/proposal/ticket
- The customer must be aware of when payment is due
- Any questions or comments will be addressed the same day
Support
- Asking questions to understand customers needs
- Having the knowledge or resources to handle customers inquiries or request
- All holds will be explained. Example: “What I am going to do for you is place you on a brief hold to research your account”
While none of the items mentioned above directly talk about selling home services, every single one of them works in tandem to do just that.
An approach like the imagined one above would cement this service firm as the obvious choice in their market.
Need Help Developing or Updating Your Differentiation?
We have an engagement called "Diagnosis Before Prescription" Marketing Strategy, where we can uncover what your ideal clients want, value and will pay a premium for.
Imagine how great it would feel to know for certain that the time, money, and effort you’ve invested in your marketing and differentiation is heading you in the right direction.
We would love to dive in and be that resource for you!
Indispensable Marketing takes a process approach to developing and installing your small business marketing.