I think we would all agree that differentiating your company/product/brand from that of competition is the road to sustained and profitable success. But how does one look for new points of differentiation? Ian C. MacMillan and Rita Gunther McGrath point out that “finding ways to differentiate one’s company doesn’t have to be an act of genius or intuition. It is a skill that can be developed and nurtured.” According to them, companies should examine the customers’ entire experience with the product or service – the consumption chain – to uncover opportunities to position their offerings in ways that neither they nor competitors thought possible. They list a set of questions that marketers should use to help them identify new, consumer based points of differentiation.

• How do people become aware of their need for your product or service?

• How do consumers find your offering?

• How do consumers make their final selections?

• How do customers order and purchase your product or service?

• How is your product or service delivered?

• What happens when your product or service is delivered?

• How is your product installed?

• How is your product or service paid for?

• How is your product stored?

• How is your product moved around?

• What is the customer really using your product for?

• What do customers need help with when they use your product?

• What about returns or exchanges?

• How is your product repaired or serviced?

• What happens when your product is disposed of or no longer used?

Mapping the consumption chain is just the first useful step. The strategic value of their approach is to analyse your customer’s experience. The objective is to gain insights into the customer by appreciating the context within which each step of the consumption chain unfolds. Essentially, this step involves considering how a series of simple questions – what, where, who, when and how-apply at each link in the consumption chain.

The approach outlined by MacMillan and McGrath allows for a more focussed way of looking at differentiation options. Their article has examples and you would benefit by going through it.

Visual courtesy : http://www.flickr.com/photos/86979666@N00/