Knowing Your Point Of Difference
I often hear partners and business development managers tell me that it is hard, if not impossible, to tell the point of difference (POD) between what their firm offers with what their competitor firms are offering.
With this in mind, for this BD Tips Wednesday I thought I would share with you two tools that I use that should help you not only know what/where your POD is, but also how you can be maximizing the value from that POD.
Step 1: Feature Comparison Table
Step 1 is to complete a Feature Comparison Table.
Here, you need to write down a list of products that both your firm and your competitors offer.
The 'products' here can be:
'Services': such as tax, equity/debt capital markets, or mergers & acquisitions.
'Geographic': such as offices in all the major capital cities.
'People': such as the number of partners/senior associates you have in each office.
What you are looking for is a table that looks something line this:
Step 2: Client Value Matrix
Step 2 is to complete a Client Value Matrix.
Here, you need to keep the same 'products' you had in Step 1, but you then need to ascertain/determine if your client or target client values this product (I would suggest you use a 1-10 scale here).
The matrix should look something like this:
Bringing it all together
Once you have completed Steps 1 and 2, overlay the results of Step 2 on Step 1 and you not only have a POV, but you also a Client Value Matrix.
Here's the kicker, do this right and you'll know what your client/target values, as well as how you differ from your competitors and QED you can charge a premium - otherwise known as 'value pricing'.
If you have stuck with me this far, here's a TIP:
Use these tools with the tool I suggested in 'Resell before you Cross-sell' and you will have a bag of tools that will go long way to helping you standout from your competitors.
Need Help With Your Business Development?
Get in touch if you want to talk about any of this. We also offer a very affordable BD Audit and Training package.
