Differentiation. It’s a term used rather frequently in the channel these days and not often applied as much as it’s discussed. It also makes me think of the phrase Inigo Montoya uttered many times in The Princess Bride movie, “You keep using that word. I do not think it means what you think it means.”
Channel professionals often use the term “differentiation” to describe a new service their company just launched or a marketing message they’ve just created. In reality, some simply white label their vendors offerings and use boilerplate templates for virtually all their promotional materials. Imagine getting an almost identical postcard or email message from two competing solution providers. I kid you not, I have (though it was 3 or 4 years ago).
In the MSP and cloud world of 2015, that approach can be devastating. No IT services company can afford to look and act just like its competition. When it does, price becomes the only differentiator. And everyone knows how that turns out ─ commoditization, shrinking margins and it goes downhill from there.
Perhaps that’s why “Differentiation!” seems to have become the de facto rallying cry for channel companies in 2015, and by all accounts, needs to remain in that position indefinitely. But that message needs substance. Providers have to dig deeper into their customers business needs and become more valued parts of their operations. More than a service provider, but true consultants who can effectively help design, build, implement and support their clients’ operational policies as well as their business systems. Their thinking has to be more strategic, not just tactical. In effect, they need to become the professional go-to advisor for their clients.
The Experience Matters
Quality isn’t just a function of marketing, it has to be earned the old-fashioned way. You start by connecting your company’s service and support capabilities to the specific needs and feelings of your clients. That type of differentiation allows the organization to drive higher margins and helps improve overall customer retention rates.
The key is building a valuable engagement with your audience. Do your clients feel like their problems are your problems? Does your team instill confidence and make customers believe they can do virtually anything they set their minds to? That may sound a little hokey, but that type of poise is what helps companies drive a premium image and solid brand. It’s what convinces someone that dropping $24,000 or more on a Harley Davidson motorcycle makes sense when a similarly optioned Honda could be acquired for half that amount.
That’s the value of good branding. It creates a higher standard so that customers will be willing to spend more on your products and services and, if done well, makes them feel better for doing so. That effect doesn’t come from good marketing alone. It takes a company-wide commitment to excellence that starts with the mission statement and carries through every activity and interaction within the organization.
Consider the situation Harley Davidson was in the early 1980s. They were just another motorcycle manufacturer in the transportation business, near bankruptcy and selling a product many considered a symbol of gangs and criminals. Company directors had done nothing to change that image, so they floundered.
After a change in leadership, the new team set out to change those perceptions and, ultimately, their overall customer experience. While it was a formidable challenge, the problem was not really as difficult as it seemed, according to Ken Schmidt, former director of communications for Harley Davidson. As keynote speaker at a recent Ingram Micro event, he shared the recipe for success in branding. “All we needed to do was get them to like us. At the end of the day, customers choose to do business with people we like and Harley’s success started when we got in tune with our customers. Validation is a basic human need and the more customers value the time they spend with us, the more they come back.”
Get the Word Out
Just understanding and applying those concepts isn’t enough. You build a brand one step at a time, from developing a message and strategy to executing each phase of the program. Success requires dedicated promotional campaigns and continual engagement. It’s not a one-and-done proposition, but a recurring focus on getting customers and prospects to think higher of your organization.
CompTIA offers a number of resources to help with that process, including a Marketing Toolkit with an eight-stage strategic process for building a comprehensive promotional strategy. It will show your team how to develop specific objectives for each stage of your solution’s development, and includes matrix templates to assess market opportunities and competitive advantages. Looking for best practices to assist your branding efforts? The CompTIA Marketing Toolkit is stocked full of IT industry proven methodologies, and they’re all in one easy to find (and follow) program.
Brian Sherman is Chief Content Officer at GetChanneled, a channel business development and marketing firm. He served previously as chief editor at Business Solutions magazine and senior director of industry alliances with Autotask. Contact Brian at [email protected].
