“Why should I buy from you?” is on every prospect's mind. To answer that question, you need to understand what makes your business different from your competition — in a way that’s meaningful to prospects. These differentiators are components of a successful brand. You may even be able to charge more because of that edge.
Red Block Analysis
The Red Block Analysis is a marketing research hack we created to help our clients take a marketing point of view, which is the ability to see a business through the target audience’s eyes.
1. Find Your Competitors
The first step involves generating a list of close competitors to measure your business against.
Tip: Log out of your Google account or search “Incognito” (an option in the Chrome browser), so the search isn’t biased by Google knowing who you are or your search history. The locations of the businesses may still be related to the location of your IP address, however. Make sure it's within your service area.
2. Create a Competitive Chart
Visit each site and create a competitive chart of what each offers; you may want to use spreadsheet software for this.
3. Perform a Gap Analysis
4. Don't Stop There
If you’ve been keeping current with trends in your market, you may discover opportunities for new services to offer. Add these to the list. Don’t rely on competitors to think of everything. If you can be first at something, or ride the wave of a trend, that may be just what you should focus on to build differentiation into your service offering.
Business Differentiation is Relative
Understanding your prospect and how they view your business in the midst of competition is essential to standing out in a crowded marketplace. A Red Block Analysis can help you find ways to differentiate your services in ways that are meaningful to prospects. If you can communicate these differences clearly, your marketing efforts are going to be more effective. You'll be the business chosen more often and ultimately you’ll earn more, contributing to the long term growth of your business.