Today’s Innovation Minute: The 1st of the 5 D’s of differentiation – Distinctive
In the last video, I talked about the five Ds of differentiation. Today I want to talk about the first D, which is being distinctive.
The key to being distinctive is that you do something that sets you apart from the competition. And it shouldn’t be just replicating what someone else is doing, it should be distinctive, like the word.
I want to give you an example. There are two insurance companies that have very distinctive strategies.
State Farm, like a good neighbor, State Farm is there. They have the largest distribution network of agents. And this has led them to be able to get 40% of the homeowners market. Even in the day where the Internet prevails, State Farm is focused on their personal touch; their distribution network.
On the flipside you have USAA. They will only offer insurance and financial services to those in the military, and their family. They know that these individuals are moving around, they could be deployed, therefore, their strategy is to give them the tools to have them feel at home no matter where they are. And using this strategy USAA has achieved a number one, or number two customer service rating of any company in any industry year after year.
One key to innovation is to be distinctive.
And that’s the first of the D’s. We’ll cover the other D’s in the subsequent videos.