Business Core · Value Proposition · Module

Differentiation

Why this offer rather than the alternatives, including doing nothing. A proposition that would read identically over a competitor’s logo has not differentiated anything.

The idea

How it works

Differentiation is a comparative claim, so it needs a named comparison set. That set includes the customer doing nothing, which is usually the largest competitor and the one least often listed.

The stronger form of the test is not what you are better at but what you are deliberately worse at. An offer that claims superiority on every dimension is describing an aspiration.

Working with it

In practice

  1. 01

    Name the real alternatives

    What the customer would do instead — including a spreadsheet, a person, or nothing at all.

  2. 02

    Run the substitution test

    Put a competitor’s name into your proposition. If it still reads as true, it describes a category rather than a company.

  3. 03

    State what you are worse at

    A deliberate weakness is evidence of a real choice. An offer with none has not made one.

  4. 04

    Check the difference is one they care about

    Being distinctive on something nobody values is a cost with no return.

One level in

The components of differentiation

A component is something that exists afterwards which did not exist before — a deliverable or a mechanism, not an intention.

  1. The alternative set

    What the customer would realistically do instead, including doing nothing.

    Learn
  2. The difference statement

    What this offer does that the alternatives do not, in terms the customer values.

    Learn
  3. The deliberate weaknesses

    What the offer is worse at, chosen rather than accidental.

    Learn

The substitution test takes thirty seconds and fails more propositions than any other check in the framework.