What do you do different?

I teach business planning to entrepreneurs. What do you do different? This is always the first question I ask. Are you faster? Cheaper? Better?

Understanding how we differentiate ourselves in the market is key to developing a successful marketing strategy and ultimately a successful business. If your customers have three options (or some amazing multiple thanks to the Internet) why do they do business with you? Why do they come back? Do they come back?

One of the key ways a new business can differentiate itself is through customer service. Call any major corporation for assistance and if you are lucky enough to get a human - you are likely talking to a remote call center half way across the world – once the operator grills you on such things as what is your mother’s maiden name, where did you go to high school, and what is the name of your first pet – you will then get to enjoy their scripted dialogue which does little to solve your problem.

When your customers call your business, do you answer the phone? With Caller ID, I can typically answer the phone “Hey, Bob – what’s up?” I am connected to my customers, they are talking to the key decision maker – OK, I am also the chief bottle washer and all around guy Friday – but I’m still the decision maker.

If your not sure what makes you different – ask! You may get some amazing insights.

The 80/20 Rule

Every Sunday, I receive the newspaper filled with circulars and advertisements. This section immediately goes into the recycle bin unread. However, I occasionally glance at an advertisement that appears amongst interesting articles in the sections of the paper that I do read. Why do I read those advertisements and not the circulars? Those advertisers understand the 80/20 rule and so should you. Follow the 80 percent interesting/relevant content in exchange for 20 percent advertising when you are marketing to your customer - regardless of which medium you choose to reach them.

The average reader will accept about 20 percent advertisements mixed in with 80 percent interesting content. Are you willing to watch on average 8 minutes of commercials in exchange for 22 minutes of "Family Guy or Desperate Housewives?" Most of us are. At the same time, few of us are willing to watch an infomercial, because it just a sales pitch similar to the circular.

So when you reach out to your customers - be it a mailer, an email or a blog - is it an infomercial? Or have you taken the time to provide interesting content they can use? Perfect example, I receive a mailer from a local real estate agent. It talks about the local housing market, it talks about the economy, and it offers advice on staging and other tips. And yes of course - ultimately it has a pitch - but if the information is valuable I read the mailer and so will your customers.