Your brand’s competitive advantage is what your brand does best that no other competitor can claim.
While it may seem like a basic idea, it’s that simplicity to blame for countless companies thinking they know what their competitive advantage is when they have no idea.
When identifying your competitive advantage, keep the following in mind:
First, it is important to be objective, not subjective. You want to use words that have the same meaning to everyone. For example, using the word “quality” is more subjective than objective because two different people can have completely opposing ideas on what quality means. Instead, think of how the idea of quality translates into value for the consumer. Does it mean long-lasting? Or one-of-a-kind? Dig deeper than the obvious.
Second, make sure you use quantifiable not arbitrary terms. People are more likely to believe statements that are grounded in science. For example, instead of claiming to get the “best results” actually measure the results you’ve achieved for clients. “Increased revenues by 200%” is far more powerful and unique to your specific brand.
Next, make sure what you are claiming to be your competitive advantage isn’t already claimed by the competition. If you build your competitive advantage as something your competition can match or exceed you are setting yourself up for disaster.
Finally, don’t use clichés. Be specific and authentic when stating your competitive advantage. Why does it make your brand truly special and why does it matter for your customer?
After you have taken the above into account, it is time to ask yourself a few questions. The American Management Association put together the following four questions to ask yourself in developing your competitive advantage:
- What are your company’s most critical competitive advantages?
- What do your employees think are your company’s competitive advantages?
- What are your competitors’ competitive advantages?
- How do you respond to customers when they ask, “Why should I buy from you?”
Once you have identified your competitive advantage, your brand will be able to better cater to your target audience by clearly communicating the benefits of your products and understanding the pain-points of your consumers.