Offer more. This doesn't mean having more inventory (though that could be a good business move, if it makes sense). It means that you can offer more for the same price or commitment from the consumer. For example, if you want people to subscribe to your newsletters, make it clear that doing so is a great idea. Offer quality tips, stories, etc. in your newsletters to make consumers feel better about their decision to get your weekly emails. Also, offer more in your overall site; subscribing to an RSS feed of your blog or simply returning to your company website takes a time commitment. Make it worth it to your readers by offering all that you can.

Analyze the situation. This can include performing a SWOT analysis of you and your industry. If you find that someone else is offering the same product at a lower price, really consider if it makes sense for you to do the same thing. Otherwise, you're following the actions of someone else who may have made that move because it made sense to do so in their company. Lowering prices isn't something you need to follow, nor are promotions. Shopping this weekend I saw two stores next to each other advertising sales: one was having a 75% off sale, and the other an 80% off sale. I don't think either store benefited much from having an almost identical sale, though it may have encouraged some customers to go into at least one store if they had considered not going into either. This can also tie into being honest: if your promotions are mostly false, customers may not notice, but some may. Seeing a sign for an 80% off sale and seeing one item with that discount may prompt a customer to generate negative WOM. A promotion is, again, something that ought to be done according to what your company needs.

Moreover, analyzing the situation and industry can help you to see where there are holes or ignored markets that could use some attention. For example, a company that offered delivery pizza when there were no competitors probably experienced some great results from having a competitive advantage from being the first in the industry. As history can show, the rest of the mainstream pizza industry soon followed suit by offering pizza delivery. Additionally, the Internet makes it easy and smart to pay some attention to those niche markets that have been ignored. For a majority of businesses, it didn't make sense to cater to the niche markets' needs; it wasn't cost effective, and very rarely created revenue or profit. Now, with lowered risk and costs, paying attention and marketing to those niche markets can be beneficial.

Be there. Offering a better customer experience, assistance, and advice can make a world of difference in the eyes of your customer. So, whomever your customer may be, offer something of value (as stated above), but that can include being more available. This can be through email, in person, on the phone, through social networking sites, etc. Allow conversation to take place, and get involved in it, too. Offer support where it is needed for your company, and try offering it where it isn't needed but would be appreciated. Try to avoid stepping on toes when it comes to opinions, but know that your advice will likely be appreciated.

Overall, know that you can't differentiate yourself by simply offering promotions or an awesome product. That may help, but in the long run it is about the experience they have and the service they are given that help to solidify you in their minds. Create a slogan of sorts for the things that differentiate you from other companies. So long are you are truthful, flaunt what you've got to let your customers know what they're getting.

What tips do you have for differentiating you and your company?