Business Growth, Customer Service, Leadership, Numbers Coach TIPS, Own Your Numbers

Are You Selling a Product—or a Commodity?

We all want to think our business’s product or service is a solution that our customers can’t find elsewhere. But do our customers see it the same way? A product becomes a commodity when all of its units of production are identical, regardless of who produces them (ex: a raw material, such as steel). If you want to be viewed as a unique offering by customers, you have to differentiate your product from the competition.

5 Simple Strategies

Here are 5 simple strategies to help your product or service avoid becoming a commodity:

  1. Create a niche market. Are your products or services able to serve a niche in the market where it is seen as a premium? Rather than trying to appeal to a broad audience, focus your offering around the niche that will highly value what you offer.
    For example: Here at the Numbers Coach, we do not try to consult with business leaders on every aspect of their business. Instead, we focus specifically on coaching them on how to really understand their financials and apply that knowledge to growing their businesses.
  2. Target the right customer. Focus on the ideal customer. The Pareto Rule is often found in many businesses, where 80% of the revenue comes from 20% of your customers. Build a profile for that 20% of your customer base and spend the majority of your marketing budget to pursue the prospects that fit that profile.
  3. Highlight your expertise. Show your expertise in your product or service, whether that’s the wisdom you have achieved with years of professional experience or your work as an artisan making a product.
  4. Provide outstanding customer service. How does your company stand out from the competition? Is it on-time delivery, is it orders fulfilled within 24 hours, is it answering customer questions with a live service representative? Find a way for you to “Wow!” customers with your customer service.
  5. Personalize interactions. Create a way to offer a personal touch to your product or service. It could be a handwritten thank-you for a purchase or a simple gift to say “thank you for your continued business.” Show customers that you personally value their business.

Here’s to offering products, not commodities, to our customers!

Get started with The Numbers Navigator for your business today.