Product differentiation is a set of characteristics aimed to define your product and make it unique. It’s easy to find the examples of product differentiation and the unique selling propositions (USP) in our daily life.
One of the popular examples is the case of M&Ms with their “The milk chocolate melts in your mouth, not in your hand“.
The clear description of product differentiation can be found in Hygger post. Let’s select the main extracts:
Each product wants to stand out and be considered valuable. However, there are many competitors everywhere. When faced with too many choices, customers are overwhelmed and often walk away rather than make a clear decision.
The core idea of product differentiation is to persuade customers that you propose something different and unique and to show them how your product compares to competitors.
What are the ways that make increase product differentiation? To get it, pay attention to the following:
As every product manager closely cooperates with designers it would not be difficult for him/her to identify the advantages.
They demonstrate what value your customers can expect to gain from using your product compared to others.
Pricing is one of the first interest of customers when they first meet your product. They explore if your product priced lower or higher than your competitors’ products.
It’s important to be sure that your product works better than your competitors’ products. Qualitative competitive advantages may indeed be the superior ground for consumers’ choice.
Customer support is also crucial. You may gather the best support team and earn the reputation for being ultra-responsive to customers’ needs. It can really differentiate your product because customers always need care.
Remember that product differentiation is a part of a global product strategy that businesses use to distinguish a product from similar offerings.