The same, only different…

A new client  - a VAR aiming to add more VA to their R - sent me a link to a brief article (by Robert DeMarzo) that he’d seen on Channel Web. Excellent reminder that you really aren’t differentiating yourself if you’re claiming that your differentiator is the same as the other guy’s.  De Marzo cited a study from Everything Channel that polled a couple of hundred VARs, asking them to state what their differentiation/value proposition to their customer is.

Now, it may be that respondents were thinking “value proposition” rather than “differentiation” - after all, you can have one without the other - although a differentiated value proposition is stronger than one that’s not; and a less than valuable differentiator is, well, less than valuable. (Let me make this point perfectly clear: just because something is different - our font is Calibri! - doesn’t mean it’s worth a damn.) Whatever the case, the results came in that:

…the No. 1 answer was exceptional technical support followed closely by trusted adviser relationship.

DeMarzo added,

To me, those are assets every solution provider must have. But they really are not going to differentiate you long term because anyone can bolster their tech support staff or win over customers with a trusted adviser pitch.

DeMarzo and an audience of of VARs he was talking these results through with came up with some alternatives to the generic, non-differentiator differentiators from the study. He argues that what

…should matter more are credentials and certifications or a deep understanding of a vertical market or a VAR’s grasp of specialized technologies. Those factors along with an intimate knowledge of your customer’s business are the true differentiators.

I’ll definitely be keeping in mind as I work with my VAR client on their positioning. Not to mention when I’m working with other companies, VAR or not.

If you don’t have something to offer that provides true value to your customer - value that is not available with other products and services - you are inevitably going to end up differentiating on price. Now, if being the lowest cost provider is your strategic competitive positioning, bottom pricing is fine. But too often I’ve seen companies trapped into beating the competition’s low, low price - even when they end up losing money on the deal - because they can’t justify their offerings in any other way.

 

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Thanks and a tip of this blogger’s virtual chapeau to KC.

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