Abstract
- Brand differentiation is important. True brand differentiation significantly improves marketing effectiveness in B2B scenarios.
- Customer feedback is important. Differentiated positioning must be explored with customers and its effectiveness compared to competitors.
- A strategy that stands out. Achieving data-backed differentiation in B2B requires understanding customer needs and avoiding “safe” and vague marketing approaches.
If I had a dollar for every time I heard (or used) the phrase “differentiate or die,” I could retire, but it's a fine mantra for B2B marketers. And now, brand differentiation is also backed by data.
New research from Considered Content examines what differentiates the most successful B2B marketers and finds that true brand differentiation has a significant impact on overall marketing effectiveness Did.
Companies that are able to develop a differentiated position in their field are significantly more likely to be top performers in lead generation, demand generation, and brand building.
In fact, people with a verified level of differentiation invariably find that every tactic they use has a greater impact.
However, there are important caveats. For a differentiated position to be effective, it must be researched with customers and weighed against competitors.
More than three-quarters of marketers who conducted each initiative said their demand generation efforts were highly effective, but that number dropped to 20% for marketers who only conducted customer research. , compared to just 2% of marketers who only compared themselves to competitors. If you can't do both, the benefits largely disappear.
But how do you achieve brand differentiation in B2B? This is the million dollar question when there is a lot of overlap between products and services.
Add to this the mere existence of an established market leader, and the goal becomes even more difficult. Although these incumbents are often poorly differentiated, they enjoy the benefit of being perceived as a safe choice. They will be automatically added to your potential buyer list, making it difficult for someone else to steal your high-paying buyers.
To make matters even more difficult, B2B sales are often messy and drawn-out jobs. Many decision makers involved do not like the pressure of final approval. After all, their jobs are at risk. This is why many companies play it safe with their marketing strategies. Because they are close to their competitors, they can also be perceived as a safe pair.
In reality, it doesn't work that way. The result is cookie-cutter brands that fail to establish an identity and inspire, and too often lose out to brand leaders. That's why a LinkedIn study found that half of brands in advertising are mistaken for competitors. In a very real sense, small brands are paying to help big brands perform better.
So what are the alternatives?
In reality, true differentiation comes from a thorough understanding of your customers. You lead from them and their problems. Here you will find points of differentiation that are relevant, reliable, achievable and different from the market.
Related article: How to use customer insights to shape product strategy and growth
Brand differentiation: What real problems are your customers addressing?
As marketers, we need to represent the voice of the customer within our business. But too few people can articulate what matters to the actual people who buy our products and services.
To get closer to your customers, you need to talk to both existing and original buyers. It is helpful to use a third-party market research company to avoid skewing your results. Ask them to research your target audience. There's nothing better than knowing who your target audience is, what they're trying to do, and what's really important to them.
Once you have an overview of their challenges, you can make sure your message is directly relevant to the world in which they live and work.
Related article: Master customer feedback management for better products
Next, determine your ideal customer profile (ICP)
Too many ICPs and buyer personas fail to provide the insights needed to improve focus and build strong positioning. They are often too vague, too biased towards an internal view of the market, or in the case of personas, too steeped in irrelevant details.
Your flagship ICP should be based on research into the key catalysts and barriers to change that drive the broader market. You need to assess your competitors and your positioning. It should determine your company's particular strengths and weaknesses.
From there, you should be able to identify potentially relevant points of differentiation, agree where to focus your sales and marketing efforts, and create a viable buyer profile. You can use this to be clear about who to target and what to say to them.
Related article: Customer insights can significantly up your B2B game
Finally, restructure what you're doing
It's not impossible, but it's unlikely that what you sell will be a unique point of differentiation in B2B. Within any category, most products and services are roughly equivalent, and any benefits are often short-lived.
Differentiation can come from a combination of how you serve your customers and your focus on helping them solve their most important challenges in your category. You can bring this to life both in what you say and, importantly, in how you say it. And you need to support this with brand assets that make you instantly recognizable and memorable.
What you shouldn't do is play it safe and go with the crowd. Consider the fact that, according to Bain and Google research, 90% of B2B purchases go to a vendor that the buyer already has in mind before doing any research. This is the raw power of having a strong brand.
If you differentiate correctly, you could be on this list too.
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