Differentiating in a Morass of Rhetoric: Distribution 2006
January 1, 2007
Distributors of commodities have difficulty persuading customers and prospects to buy from them. In most distribution channels, there are hundreds of competitors who are anxious to take business away from the incumbent, or holding on like a vice grip to the business they have in place.
I have found that distributors resort to offering what they perceive to be "differentiators," the reasons why their customers and prospects should buy from them. Unfortunately, many of these differentiators have become a morass of promises and nirvana that have become meaningless. Try these on for size:
- We have great quality
- Our service is unparalleled
- We care
- We really care
- Our people make the difference
- We get it right every time
- We have great products and service
- Our reps are experienced professionals
If the above bullet points seem a bit redundant, then ask yourself, why would any customer or prospect be motivated to entrust their purchases to your organization if they hear or see these words emanating from your literature, mouths, trucks, voicemail, trade show banners, etc.?
Answer: I have no clue.
So, here's the dilemma: Distributors do need to determine what differentiates themselves from their competition. And, these differentiators do need to be ingrained in the company's culture, habits and operations. However; distributors must resist their dependency on creating "quality" speak that mitigates what truly would motivate a customer or prospect to purchase.
Here is what I suggest:
- Determine what every distributor in your field must deliver
- Determine what you think your company provides that truly differentiates your firm from your competition
- Determine if these differentiators really make a difference to your customers and prospects. In other words, are your customers really willing to pay for what you think is of value?
- Scan what your competitors say about themselves. Resist the temptation to say the same things, in the same way. Consider alternative messages and formats to portray what makes your company tick and of value to the market
- Listen, really listen, to how your employees promote your company, especially the things they say and do to differentiate you from competition
- Provide feedback and tweak the ways your people communicate: I have found that outside reps often vomit catch phrases, such as "we have been in the market for 60 years," etc., without connecting these features into desires the customer has expressed to solve a particular need. (There are some great sales books/methods that can help your reps communicate in more effective ways.)
- Whatever your organization does that differentiates from competition, make sure that everyone within the company actually understands what is expected, and actually does it. Otherwise, what you say you will do will hit a wall when someone within the company doesn't execute.
In summary, it is essential for distributors to understand what differentiates them from their competitors. Further, these differentiators need to be polished and primed continuously, so that the distributor's organization fully understands and is committed to flawless, measurable, accountable performance.
When, and only when, the distributor feels certain that the differentiators are truly being acted upon virtually 100% of the time, then the distributor must find ways to promote and gain buy-in from its customers and prospects. This means that those key reasons to change and entrust the purchase of products and services must not be relegated to a mucky swamp of words and slogans.
In today's economy, distributors simply cannot afford to rely on words that everyone else is using. The weakest competitors in your particular channel have made "talk cheap."
