Break Free: 5 Tips to Differentiate Your Brand

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abdulahad
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Break Free: 5 Tips to Differentiate Your Brand

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Brands across the globe and in virtually every industry are suffering from a crisis of differentiation. It seems every time one company discovers something that works well, others race to copy the idea. Professional services, airlines, wireless communication, and insurance are just a few examples of industries in which major brands have become nearly indistinguishable from one another. The primary reason for this: Companies have forgotten how (and why) they need to differentiate their brands. In this blog, I’ll cover why brand differentiation matters and how to achieve it with your brand. According to the WPP and Millard Brown 2015 “Brand Top 100 Global Brands” Report, which studied brands from 2006 to 2015, differentiation is the single most important contributor to a brand’s success. The top 50 brands in the world achieved an average Difference Score of 139, while the next 50 scored an average of 96. That’s a significant difference. To be fair, the importance of differentiation is not a new idea. It is arguably the basis upon which modern brand management was founded. However, as more recent theories and measurement techniques (such as Net Promotor Score, brand purpose, and brand relevance) have gained traction in the world of marketing—and for good reason—it seems to be at the expense of differentiation.

While these concepts all have merit, they do not alleviate the need for differentiation. In fact, they all depend on—if not actually assume—a minimal level of distinction in branding.Phone Number List Importantly, brand differentiation is not only critical from a marketing perspective, but it also has far-reaching broader business implications. Simply put, differentiation directly affects a brand’s short-term profitability and long-term viability. Specifically, when customers see brands as interchangeable, they make purchase decisions based primarily on price, which inhibits a company’s ability to command premium pricing. This translates to lower product margins and reduced profitability. Additionally, customers are (not surprisingly) less loyal to brands they feel are undifferentiated. This leads to lower revenue, reduced market share, and ultimately compromises a brand’s ability to survive, especially in challenging market conditions. Yet despite the undeniable advantages of achieving differentiation, brands can’t seem to get out of their own way. As far back as 2006, a Copernicus and Greenfield study discovered that consumers were beginning to see more categories as interchangeable commodities. Several years later, Deloitte confirmed that customers saw several categories of products as homogenous, ignoring labels for the cheapest item on the shelf. The good news is brands can break the monotony, but to do so, they must remember what it means to be different. Becoming Truly Different To establish meaningful differentiation, follow these five brand strategy tips. 1. Start With Your Positioning All brands need to establish a compelling and unique positioning to attract customers and resonate with stakeholders. Every single aspect of brand activation—from the core product or service offering to the experience it delivers to customers—must be rooted in (and consistent with) its positioning. Back in the day, conventional wisdom suggested that brands needed to be positioned around a consumer-facing benefit: in other words, “what” the brand does for you. But the “what” question is just one way to position a brand.

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Today, there are numerous examples of brands that have achieved meaningful differentiation in other ways. For example, the Red Bull brand is arguably positioned around a “who”—namely the persona of an active, successful person. Other brands, like Dove, lean on their purpose as the basis for their positioning, or in other words, the “why.” Still other brands achieve differentiation through the way they go about their business—the “how.” Nordstrom, with its exceptional customer service and Southwest Airlines with its people-first attitude, are two such examples. Point being: There are a number of energy drinks, personal care lines, department stores, and airlines available, but each of the above brands discovered ways to become more relevant in customers’ lives—and they did so in different ways. 2. Look for Your Customer Experience Customer experience is another aspect of branding that has become homogenized over the years. As soon as one brand decides to offer a drive-thru option, free delivery, or same-day service, you can bet other brands will quickly follow suit. However, consistent with the point above about positioning, by definition, different brands should provide different experiences.
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