Creating a differential advantage

Make your store stand out from the rest by identifying what makes your store unique.

Last year my wife Elizabeth and I spent five wonderful days on beautiful Mackinac Island, located off the northern tip of Michigan’s Lower Peninsula.

Many quaint little shops offered an array of one-of-a-kind gifts and souvenirs. As we strolled in and out of these shops, some of them stood out from the rest. These particular retail establishments offered something special and distinctive, enchanting and personal.

Whether it was the soft, shy fragrance that made you feel welcome as you passed through the doorway or the gentle music that invited you to linger and browse awhile, the best stores enticed a buyer’s senses with the promise of a really special experience awaiting them inside.

It is a tough challenge making shopping a magnetic, irresistible, memorable experience. Yet in today’s competitive gift shop market, these experiences are a must.

When comparing one shop to another, all things appearing equal, a shopper will always defer to the one with the lowest prices. But you can make them forget about a mere price comparison by making your shop stand out from the pack.

Identifying your differential advantage — the thing that makes your store unique — will put your store miles ahead of your rivals. In today’s retail landscape, it is a must-have if you want to tap the full potential of your business.

Doing something better than the competition, or offering something they don’t, such as a guarantee of some sort, will give your store an edge. You must be able to meet your prospect’s needs and expectations better than anyone else or in a way that your competitors cannot.

Not only must you have a clear differential advantage, you must be able to clearly explain it. If potential customers don’t understand what you do better than your competitors, they won’t be convinced.

"Identifying your differential advantage — the thing that makes your store unique — will put your store miles ahead of your rivals. In today’s retail landscape, it is a must-have if you want to tap the full potential of your business."

Too often retail business owners do not think this last point through. They don’t take the time to really organize their thoughts, to literally memorize how they will communicate what it is that makes their store uniquely special and set apart from the competition.

One thing that will speak volumes is if you make sure that everybody who works for you, no matter the title — associate, bookkeeper, manager — understands that they are part of the sales team. Every one of your employees should be able to help your customers by courteously answering their questions or directing them to what they want or need. Communicating this expectation to your staff — and training them so they can fulfill it — is critical to the success of your small business.

Look around and ask yourself: Who is your competition? What makes your retail establishment better than theirs? How can that difference be demonstrated in a convincing way, and presented with pizzazz and conviction? And finally, how will your customers experience that difference?

When you are able to really pinpoint what your differential advantage is, and use it, you will be on your way to making your shop the one that customers return to regularly — and bring their friends.