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The Secret for Driving Growth and Scalability

I recently created a post on LinkedIn that identified the “secret sauce” for your business. Did you see it?

If you follow me, you know I’m not one to talk about how your “secret sauce” or creating “massive value” are the ways to grow and scale your business. I think most people who say these things can’t even tell you how to create the growth you are looking for. Maybe that’s why they make it sound like it’s so easy, when it’s not.

Many business leaders believe the secret to attracting business is a well-crafted Unique Value Proposition (UVP). That’s because it’s what they hear time and again. So they will spend hours – and a lot of money – trying to create the perfect elevator pitch, but that doesn’t matter as much as they have been told either. A UVP answers the question of why someone should buy your product or service. In other words, your UVP drives interest and sales, not growth. And relying on your UVP is probably holding your growth back.

While growth relies on sales, the two are not the same. Growth is the process of bringing money in, and it’s measured by sales amount or sales volume, not profit. It’s possible – and very common – to see growth without profit or profitability. Sales can increase in number and dollar volume but your profitability can stay the same, or even regress, depending on things like churn, customer loyalty, brand loyalty, and a host of other factors.

These factors, the ones that are key to profitability, are influenced by differentiation, which is also directly tied to successful growth and scalability. Differentiation is how you create value for your customer and build brand loyalty. It’s not just how you position your offerings in your UVP. It’s the process of creating unique offerings that incorporate the qualities your customers value.

Differentiation allows you to provide superior value to customers at an affordable price, which creates a win-win scenario that can boost the overall profitability and viability of your business. There are six differentiation strategies: Product, Service, Relationship, Distribution, Reputation and Price. Some, such as Product, are easier to create, but can also be easier to copy. That may even defeat the purpose of differentiation, which is to create a unique offering in the market. That is why you need to understand all six strategies before you choose one.

Differentiation is an activity, not just something you mention in your elevator pitch. It’s worth undertaking in many cases, but only when it meets at least one of the following criteria:

  • The perceived benefit exceeds the cost
  • The benefit provided is critical to your client’s success
  • It is unique or offered in a distinctive way
  • It is superior to other options
  • It is linked to a core emotion (which helps build and grow your brand)
  • It is understood and visible
  • It cannot be easily copied
  • It’s affordable to your clients (i.e., they can afford the increased cost), and
  • It’s profitable (relative to implementation costs)

Interested in how you can differentiate to grow more rapidly?  Let’s talk!