In 2011, Matt Salzberg was a restless associate at a Silicon Valley investment firm. He and his friend Ilia Papas wanted to create a business and were intrigued by food.
“We both loved food,” Salzberg said. “We liked trying new ingredients, new recipes, new techniques, but we found it really inaccessible to cook at home. It was expensive, time-consuming and difficult to find recipes that we trusted.”
The duo tried a few ideas before landing on the one that became Blue Apron: give people an easy way to make dinner using chef-recommended recipes and the fresh, precisely measured ingredients they’d need. With 20 friends beta-testing the product, Salzberg immediately realized they had a winner. Beyond rave reviews and contagious social media sharing, they had undeniable momentum:
“Pretty much from day one we’ve had steady exponential customer growth. I think the moment we did our first week of deliveries we sort of knew that we had a business that we thought would be really successful.”
By August 2012 the team was shipping recipes to early testers, and three years later Blue Apron was delivering millions of meals to monthly subscribers, the company valued at a whopping $2 billion!
Find Your Competitive Advantage
Initially, some scoffed at the thought of paying restaurant prices for something you labored to cook at home.
But they overlooked Blue Apron’s unique advantage: appealing to “foodies” who loved high-end meals but relished the opportunity to cook them. Blue Apron found a niche in the market that catapulted them to exponential growth and national exposure.
Competitive advantage is that “special something” that draws customers and keeps them coming back.
Why do you buy a Ford versus Chevy? Why do you spend $80 on a certain brand of jeans? The answer lies in the competitive advantage, the unique set of features a product has that makes it superior in the eyes of a target audience.
Competitive advantages include niche strategies (like Blue Apron), cost advantages, and product or service differentiation. Consider these examples:
Cost Competitive Advantage
Companies can grab an edge when they control costs and efficiency in ways that create maximum value for consumers.
Walmart uses this advantage by providing a large selection combined with low prices through its retail size and strength. Some companies draw from years of experience, overseas production, or streamlined workflows to minimize expense.
As you brainstorm cost advantages for your customers, consider how you can improve productivity from your team, if your technology or equipment is cost-efficient or needs upgrading, or where you can give customers a cost break via delivery options, locked-in service rates, or freebies that come as a bonus for specific orders.
Another way to gain a competitive advantage is through product differentiation.
As you distinguish yourself in the marketplace, focus on the value you offer through your unique products. What makes your toothbrush one of a kind? How is your technology superior to other market options? How does your farmer’s market produce outclass the bounty of your competitors?
People love getting the best product for their penny, so work hard to highlight your advantage and shout it loud through print and digital pieces that spotlight your strengths.
While cost or product advantages can quickly disappear (or be duplicated), every company can offer one-of-a-kind service advantages.
Whether its bundled subscriptions, outstanding customer care, or unrivaled warranties, build a benefit that is exclusively yours. Consider bonus delivery features, apps that are user-friendly and easy to learn, terms that are simple and risk-free, or energizing ambiance (like funky décor or stellar store atmospheres). Make customers so spoiled they’d never consider your competitors! We spoil our customers with promises kept. Call Patti today at 410-574-0780.