{"id":48701,"date":"2024-11-08T10:12:10","date_gmt":"2024-11-08T15:12:10","guid":{"rendered":"https:\/\/hingemarketing.com\/?p=48701"},"modified":"2024-11-08T10:15:27","modified_gmt":"2024-11-08T15:15:27","slug":"how-to-differentiate-the-not-so-different-firm","status":"publish","type":"post","link":"https:\/\/hingemarketing.com\/blog\/story\/how-to-differentiate-the-not-so-different-firm","title":{"rendered":"How to Differentiate the Not-So-Different Firm"},"content":{"rendered":"

At Hinge, we\u2019ve written a lot about how to differentiate a professional services firm (for instance, see <\/span>here<\/span><\/a>, <\/span>here<\/span><\/a> and <\/span>here<\/span><\/a>). We even produced <\/span>a course<\/span><\/a> on the topic.\u00a0<\/span><\/p>\n

One important idea we talk about is the value of specialization. Firms that specialize in an industry, or a group of similar industries, have a competitive advantage and can charge higher fees than their unspecialized competitors. Sometimes they take a different tack, going all-in on a particular service or target audience. There are <\/span>many variations<\/span><\/a> on this theme.<\/span><\/p>\n

On the other hand, firms that don\u2019t specialize\u2014and that means most firms\u2014find themselves in a bind. They look a lot like everyone else in their industry, so people have trouble telling them apart. That means nobody stands out, which makes their marketing less effective. And because so many firms sell the same services, buyers have all the leverage in the relationship. That means prices tend to go down, and so does profitability.<\/span><\/p>\n

There are few ways to win in this situation. You can lower overhead and increase your efficiency. But there\u2019s only so much juice in those lemons.\u00a0<\/span><\/p>\n

Why Buyers Prefer Specialists<\/b><\/h2>\n

Specialists are less affected by commoditization, and buyers just trust them more. That\u2019s because buyers believe\u2014for good reason\u2014that specialists understand their area of expertise better than a generalist. After all, specialized firms are likely to have seen every problem before and are better equipped to fix them. Which means their solution is more likely to be done well and more quickly.\u00a0<\/span><\/p>\n

For these benefits, many buyers are willing to pay a premium. They\u2019ve been burned before by the lowest bidder and they are happy to open their wallets a bit wider to avoid the pain of poor client service and incompetent work.\u00a0<\/span><\/p>\n

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Free Resource<\/h6>

The Differentiation Guide for Professional Services Firms<\/p>\nDownload Now<\/a><\/div><\/div>\n

The Innovator\u2019s Advantage<\/b><\/h2>\n

Another excellent way to differentiate your firm is through innovation. You hear that word a lot in the professional services. But true innovation is a lot rarer than all that chatter would have you believe. I\u2019m talking about the kind of innovation that will make buyers take notice. It might be a new business model people haven\u2019t seen before, a proprietary new technology that produces never-seen-before results, or something that dramatically\u2014and measurably\u2014improves the client experience. That kind of innovation is hard to achieve. And to be a true differentiator, it must be easy to understand and provable. Most innovations don\u2019t meet these standards.<\/span><\/p>\n

What if You Can\u2019t Specialize or Innovate?<\/b><\/h2>\n

What if your firm is too big or too set in its ways to specialize or innovate? What if true differentiation like that is simply out of your reach?<\/span><\/p>\n

There is another path forward. It is not as powerful as having a true differentiator. But this alternative approach can set you apart, nevertheless.<\/span><\/p>\n

Before I tell you about that approach, it helps to understand why most firms are so similar in the first place.<\/span><\/p>\n

Why Professional Services Firms Are Alike<\/b><\/h2>\n

Most professional services firms are, by and large, undifferentiated. Some industries, such as accounting, IT and law, are chock full of look-alikes that offer the same set of services to the same audience.<\/span><\/p>\n

How does this happen? I can think of three ways.\u00a0<\/span><\/p>\n

First, most firms are formed when one or more professionals leave a larger firm to start their own business. These individuals are excellent at delivering the work, but they don\u2019t necessarily know much about business strategy. Rather than focus on a narrow market or change up their business model, they set up a scaled down version of the firm they left.\u00a0<\/span><\/p>\n

Second, as organizations grow they add more and more services and target an ever-expanding range of audiences. That\u2019s because they need a broader range of expertise and experience to compete with their larger competitors for complex projects.<\/span><\/p>\n

Third, firms love to follow the leaders. From \u201cbest practices\u201d to messaging to branding, they like to model themselves after the biggest and most successful organizations in their industry. This instinct produces a clutch of firms that look, sound and operate like clones.<\/span><\/p>\n

Chances are, one or more of these forces channeled your firm like a river into the broad, bland Undifferentiated Sea. Gulp. Fortunately, there is a way out.\u00a0<\/span><\/p>\n

How to Differentiate the Undifferentiated Firm<\/b><\/h2>\n

If narrowing your focus or innovating in a meaningful way are out of the question, there is still a technique you can use to help prospective buyers see you as different. It involves finding a way to talk about yourself that is both unique and relevant to your target audience.<\/span><\/p>\n

Here\u2019s how it works:<\/span><\/p>\n

Step 1: Know Your Foes<\/b><\/h4>\n

To be different, you need to understand how your competitors talk about themselves. You probably aren\u2019t going to be invited to their sales pitches, but you can still get a good idea of their main themes. The easiest way to do that is to get online and visit each of their websites.\u00a0<\/span><\/p>\n

Visit just two pages: the homepage and About page. On the homepage, look first at the major headlines. What are they prioritizing? How do they talk about their firm? Write it down. Then look for any blocks of text that describe their firm. If you find any, try to pick out any key themes they use to define themselves. Follow a similar approach on the About page. Typically, these pages have a lot more text, but you\u2019ll find the relevant messages in the first paragraph or two.<\/span><\/p>\n

Follow this process for at least five or six of your top competitors. When you are done, read over your notes and highlight the themes they are using. These are the things you want to avoid in your own messaging.\u00a0<\/span><\/p>\n

Step 2: Look for the Opportunities<\/b><\/h4>\n

This step may be easy or it may be tricky, depending on the hand you have been dealt. Think about your own firm and services and ask yourself a series of questions:<\/span><\/p>\n