5 Confirmed Methods Your Standardized Enterprise Can Create New Worth (Beginning In the present day)
June 24, 2021 5 minutes to read
The opinions of entrepreneurs’ contributors are their own.
In the business world, it’s never good to say that a company is “marketed”. According to Investopedia, when a company becomes its “goods or services” into a commodity, [have] can no longer be distinguished from the same offers from a competing company. In general, mass products are so similar within certain categories that they only differ in the price tags attached to them. “
Usually this happens when more competitors enter an area that was once fresh and innovative. The products or services you offer can also be viewed more as “everyday items” and not as unique must-have items.
When this happens, your profit margins will go down because you have nothing to help you stand out. Fortunately, any company that has gotten into the mass trot can escape by finding new ways to add value.
Related: How To Find Out Your Margins
1. Find a way to upgrade
Start by looking at your products or services for yourself. Do you need an upgrade? A seemingly minor upgrade to an existing product or service can result in instant differentiation that your competitors can’t match.
Apple’s iPhone is the perfect example of how incremental innovation can make a product a must-have. You don’t necessarily have to reinvent the wheel. Even finding a single area where you can improve your product or service will help them stand out from the competition.
2. Segment into a more targeted market
Sometimes the best way to escape commodification is to make more niches. For example, instead of focusing on the entire real estate market, I’ve achieved great success in my own career by focusing on corporate real estate.
Part of cutting your niche involves identifying groups of customers that you serve and that you don’t want to serve. Even if you don’t have a sub-niche in mind, the type of customers you want to work with can help determine how to make your offering more specialized and less general.
By focusing on the ideal group of customers, you will find those who will best appreciate your offering. A case study by the Transportation Marketing and Sales Association shows that a truck broker increased sales 18 percent because they reduced their customer base by 75 percent. Focusing on high quality customers resulted in far higher profits than serving a broad market.
Related: 2 Simple Rules To Follow In Developing A Market Segmentation
3. Bundle additional services to offer more convenience
Convenience has long been a priority for consumers – but in the Internet age this is more pronounced than ever. In fact, a study by the National Retail Federation found that 97 percent of customers actually “withdrew from a purchase because it was uncomfortable for them.”
Convenience is more than free shipping via Amazon. If you have a standardized product or service, bundling it with an additional service can offer the convenience that your customers want.
For example, many travel companies allow their customers to book flights, hotels, rental cars and more through the same platform. Customers are often willing to pay an extra charge to plan their entire vacation in one place. Providing similar offerings for your own private label provides a factor of convenience that is difficult to ignore.
4. Offer your customers real expertise
For most business owners, a big part of the reason you entered your niche in the market is because you are very passionate or knowledgeable. Your customers may not share your enthusiasm, but chances are they have questions that you can answer.
When you deliver value-driven content – be it in the form of blogs, FAQ pages, or just in response to emails and phone calls – your brand becomes much more than just the product or service you are offering. You position really helpful content as a contact point for information about your niche.
As a trusted source of industry expertise, customers will become more loyal to your brand, even in an increasingly standardized market.
Related: 7 Content Marketing Tips for New Business Owners
5. Do it personally
While it can be difficult to personalize a pack of tissues, every business has room for more personalization. However, after a customer is onboarded, personalization can become even more powerful. Of brands that personalize their content, 55 percent report an improved customer experience and greater engagement, while 39 percent say personalization improves their brand awareness.
Personalization can go beyond adding a customer’s name to their email or using better targeting for ad placements. Grocery brands, for example, which send out individual coupons based on a buyer’s purchasing preferences, go a long way towards ensuring loyalty in an otherwise very standardized industry.
Fight against commodification
No brand wants their products and services to be seen as interchangeable goods that are no different from the competition. By using these tips to add real value to your product or service, you can better target your target market – and better meet their needs.
When this happens, you will stand out in even the most crowded niche, improve your profits, and become a force to be reckoned with.