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A Different Perspective on Differentiation

by Hank Barnes  |  November 12, 2019  |  Submit a Comment

I write and talk about differentiation a lot.  And our vendor clients are constantly looking for help in uncovering and communicating differentiation.  Its very much focused on what makes them special and different than specific alternatives.   Differentiation is critical for success.

But recently, I saw some data that provided another perspective.  My colleague, Derry Finkeldey,  led a study of 764 line-of-business buyers (yes, that buyer that most vendors are really concerned about reaching and appealing to).  The findings are available to clients in our Gartner for General Managers program in this survey analysis document (additional research for GMs and other roles is coming).

One of the charts really caught my eye.   We asked these buyers what mattered most (and least) when considering vendors.   Statistically speaking, we used a MaxDiff technique to identify the most, and least, important factors.  The chart below highlight the top 4 factors.

Source: Gartner, Inc.

All four  of these factors (there were 9 others, by the way) make it abundantly clear–LOB buyers want vendors that will work with their business and care about their business priorities (the lower rankings were more oriented toward vendor reputation, brand, price, etc).

The one that jumped out for me though is the 4th highest.

Vendors spend all their time focusing on their own differentiation, when, maybe, they should be focused on their ability to help their customers differentiate.   Now this is interesting, because I really don’t have a business if I sell to just 1 company.  And if I sell to many, differentiating based on my product is not realistic.

But, if I think beyond the product at everything that surrounds it and the real business issue, we could do more.  It would illustrate understanding of the customer situation.  We could look at choices that can be made during implementation and deployment that could help the customer differentiate.   This does not have to be about customization.  It is about choice  (and maybe we evaluate customization against the ‘does this help you differentiate’ perspective).

Clearly, if you want to reach the LOB buyer, the mantra we have been pushing for years (understand the customer’s situation, lead to product not with, etc. ) is critical.

The next time you think about differentiation, consider it from the customer’s perspective—it’s not about your differentiation (solely); its about whether you can help them differentiate (and gain competitive advantage).

 

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Category: go-to-market  

Tags: differentiation  line-of-business  tech-buying  

Hank Barnes
VP Distinguished Analyst
6+ years at Gartner
30+ years IT Industry

Hank Barnes explores the dynamics, challenges, and frustrations enterprises face when buying technology products and services. Using that customer-centric lens, he advises those responsible for marketing technology products and services, general managers responsible for product portfolios, and startup CEOs on next practices to drive success for their customers and their business. Read Full Bio




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