How to Create a Competitive Advantage That Gets Customers’ Attention

How is a small business owner supposed to stand out from competitors and attract customers? The answer sounds simple at first: by creating and promoting their company’s competitive advantage.

But actually defining a competitive advantage can feel tricky. To start, a business owner needs to start thinking like a consumer. What will make the company seem like the best choice in a customer’s eyes? How will the brand stand out?

Some brands can easily find their competitive advantage without doing a bunch of market research. Maybe a shoe store owner knows that they’re the only shop in the region that sells women’s shoes in sizes 11 and up (talk about a narrow market segment). Maybe a family-owned restaurant knows that no other eatery has served the community longer than any other restaurant in the county.

But what if a business owner feels like their establishment isn’t all that unique? Maybe a seamstress has a simple alterations service, and she doesn’t feel like her services are all that different from other stores in the area. But she can still find ways to differentiate herself and stand out to her target market. She just might have to get a bit more creative.

Here’s the key: creating a competitive advantage is less about having innovative products and services (though that does help) and more about making customers perceive that the business has a distinct advantage over the competition. This guide walks through a few key things to consider to help build sustainable competitive advantages as a small business owner.

What gives businesses a competitive edge?

Everyone knows that great products and customer service are what set the best businesses apart. But for the most part, those features only become apparent after the customer has already made a purchase. The challenge for a business owner is to find ways to attract those new customers to begin with.

Suppose a business owner is a retailer who’s trying to draw foot and auto traffic might find that visuals play a powerful role. They could take advantage of signs on the building with the company logo (including a slogan), unusual window displays, sidewalk signs, brightly painted buildings, and more. Of course, local regulations need to permit those displays.

Business owners can also make themselves memorable to customers by putting signage on local delivery and service vehicles, sponsoring local youth sports teams, and even participating in the local chamber of commerce. If a business sells products, the owner can pay special attention to package shape, color, and placement on aisles, which are all important ways to attract attention and build recognition for what the brand sells.

But getting attention is just the first step towards developing a competitive advantage. To give a business a real edge, a business owner needs to connect their brand to a real (or perceived) benefit that customers want. In other words, the business needs an emotional “hook” that will appeal to the customers.

Sustainable Competitive Advantages: Real-World Examples

In the 1950s, Gleam toothpaste created a competitive edge for itself by singling out and hyping one of its ingredients – chlorophyll – and touting it as a miracle ingredient for people who couldn’t brush after every meal. The interesting thing was that chlorophyll was a common ingredient in other kinds of toothpaste on the market, too. But the others weren’t promoting it.

Or consider Old Fisherman’s Wharf in Monterey. There, the wharf is lined with dozens (if not hundreds) of restaurants, novelty shops, jewelry stores, and candy shops, all vying for the tourists’ attention…and dollars. On that wharf, there’s tons of foot traffic. But the businesses that actually manage to turn those pedestrians into customers are the ones that stand out from other businesses in some way.

For example, some of the buildings are painted bright colors and sport colorful awnings. Many have sidewalk signs strategically placed on the walkway. A candy store has a machine operating in the front window that continually stretches and twists a huge wad of taffy as a visual demonstration to draw customers in. Some of the restaurants even have greeters standing out front offering samples to showcase their superior quality.

Granted, tactics like this won’t work for every single business. But what’s clear is that a business needs a clear way to stand out to the crowd, even if they have an “ordinary” business model.

How can a business owner make their company stand out?

Most business owners can make themselves distinct by featuring different aspects of their products or services. That said, it’s important to remember that features alone aren’t benefits; they don’t create the kind of emotional pegs that nail sales. To turn a feature into a benefit, a business owner needs to express that feature in a way that matters to the customer.

Take, for example, the Swiffer division of P&G. They offer a range of products for mopping and dusting. But Swiffer doesn’t “sell people” on the idea of buying a mop or a duster. Instead, Swiffer sells the ideal: making cleaning easier and having a dust-free home with minimal effort.

So here’s a list of competitive advantages that business owners can use as inspiration for selling in more creative ways. It’s by no means an exhaustive list, but it can be a helpful starting point.

Remember: a business doesn’t have to play up a completely unique factor of the company to establish a creative advantage. The company just needs to highlight something that’s important to its customers (ideally in a way that no one else has).

Location

• Conveniently located in
• Just minutes from
• Overlooking the harbor
• Easy access from
• In the heart of [town name] (especially for a small town)
• Shop-from-home convenience
• Cloud-based service works anywhere you are
• 24-hour-a-day Internet access
• Plenty of parking

Performance

• Faster
• More precise
• Easier to use
• On time
• Accurate
• Flawless
• Most reliable
• Exceeds expectations
• Top-rated
• Outperforms
• Best in class
• Carefully tested

Physical Product Size

• Biggest
• Smallest
• Fits conveniently in
• Small enough to
• Large enough to
• Big enough to
• The perfect size for
• Fits all standard sizes
• One size fits all
• Custom fit
• Sized to fit any budget
• Fits all standard sizes
• Lightweight for easy portability

Color

• Brightly colored
• Soft tones to fit in with
• Sleek silver finish

Durability

• Sturdy
• Survives a drop from ___ feet
• Stands up to
• Strong
• Long-lasting
• Reusable
• Won’t rust
• Racoon-proof

Versatility

• Fits any size
• Multiple uses
• Works in any temperature
• Adored by young and old

Speed

• Get the job done in minutes
• Dries faster
• On-demand access
• Guaranteed delivery within one day
• No-wait service

Accuracy

• Accurate to within [insert quantity]
• Meets personalized specifications
• Error-free

Ease of Use

• Easy to use
• No instructions needed
• Step-by-step instructions included
• Self-explanatory
• Takes the effort out of ______
• Effortless installation
• Done for you
• Worry-free

Customer Service

• 24-hour helpline
• Professional support
• Award-winning service
• On-time arrival
• 30-day return policy – no questions asked

Personalization

• Personalized attention
• Personal advice
• Custom-created for every customer
• Customized to each customer’s specifications
• Designed just for you

Specialization

• Specially designed for
• Perfect for
• Created with the ___ industry in mind
• For seafood lovers
• For the [insert industry category] enthusiast

Special Features

• Chemical-free
• Odor-free
• Wholesome ingredients
• Locally sourced
• Organic
• Family recipe
• Fully assembled
• Wrinkle-free
• Adjustable height
• Bonded and insured

Expertise

• Masters at
• Internationally recognized
• Talented team
• Pioneers in
• Seasoned professionals
• Award-winning
• Years of experience

Trustworthiness

• Guaranteed
• All work guaranteed
• Backed by
• Accredited by
• Certified by
• Praised by
• Used by (names of well-known customers)

Value

• Lower cost/lower price
• Bundle and save
• On sale now
• Backed by a 3-year warranty guarantee (or another time increment)
• Greater value than [insert competitor’s product or service]

Putting It Into Practice: A Little Ingenuity Goes a Long Way

While the list above is pretty thorough, the ideas won’t work for every single business. Some entrepreneurs might need to brainstorm and create their own list by detailing the features of their products and services and all the associated benefits. The owner can consider ingredients and materials used in the finished product, the manufacturing process, the product’s reliability after it’s made, and more. After that, they can put themselves in their customers’ shoes and ask: which things are most important? Those are what the owner should highlight to help win customers.

It’s also a good idea to ask friends, family members, and even existing customers for help with identifying unique selling points. Those people might focus more on aspects of the product that the business owner’s overlooking; a second opinion can help someone figure out points of differentiation that they didn’t notice before. And if a friend values a certain strength about the product or service, another customer probably will, too.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.