Define how you’re different in ways that matter to your markets

“A differentiation strategy is a way to stand out from the noise and give people a reason to choose your business over others.

“You’d think companies would be all about that, instead they all too often default to a generic strategy.”


Differentiation helps companies and products stand out in crowded markets.

It helps generate revenue by answering the key question, “Why should your ideal prospect buy your product rather than a competitor’s?”

Companies or products that dominate their market don’t need much more differentiation. Their leadership is their primary differentiator.

But for all other companies, differentiation is among the most important strategies to develop or refine. It helps direct both product and go-to-market strategies.

But most SaaS companies struggle to make their product stand out for long.

As markets become more saturated, competitors become more similar.

It’s hard to differentiate based on product and brand. You can’t compete on product features for long. A competitor will soon offer what you do.

Differentiation based on price isn’t sustainable.

Because effective differentiation is hard, many companies don’t give it enough effort.

An idea to consider

To succeed with effective differentiation, try any of 9 strategies that can give you lasting advantage.

Hint: One of the more effective is to differentiate by customer experience. It’s one of the hardest strategies for competitors to copy.


“Differentiation Strategy: What It Is, Why It’s Critical, and How To Get It Right.” Peep Laja. June 2, 2020 (updated March 25, 2021). CXL blog post.

This is a comprehensive article by an expert on conversion-rate optimization. It’s clear, well-written, and worth reading. It’s especially good if you’re not strong in positioning. Read the last third of the article for the 9 effective strategies.


“Why It’s Better To Be the Anti-status Quo: Learning from Modern-Day David and Goliaths.” Linda Zhang. September 6, 2020. Product Lessons blog post.

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