Escaping the Commodity Trap

Source: Partner's Report

In today's highly competitive environment, one key to survival is differentiating your firm's products and services so clients don't view them as commodities. This article outlines seven keys to differentiation:

• Product. Find out what your clients and prospects value, then make it a major initiative to create something unique about your products or services that caters to their needs.
• Price. Differentiating your firm based on price is probably the weakest strategy, but if you choose to market yourself as a low-cost provider, be sure that your expenses are “cut to the bone.”
• Relationship. Building trust-based relationships with your clients gives you an edge over the competition. Your relationship with a client is the one thing no other firm can duplicate.
• Process. Don't underestimate the impact of “how things are done” — including customer-friendly technology solutions — on the firm's image.
• Technological. Take advantage of cutting-edge communication tools — such as podcasts and blogs — to provide clients and prospects with information and to make it easier for them to be heard.
• Experiential. Go beyond brand-building to provide customers with “knock-your-socks-off service and experiences.”
• Marketing. Develop a marketing and sales approach that moves the discussion away from price and toward the things that set your products and services apart.

For the complete article, read “Seven Ways to Differentiate Your Firm From the Competition.”

From Partner's Report, The Monthly Update for CPA Firm Owners, Institute of Management and Administration, Inc., [email protected], December 2010, p. 8.