Brand differentiation: 4 effective strategies for your e-commerce

Often, when a company innovates, makes a bold business move, or introduces an out-of-the-ordinary solution, its competitors immediately follow suit. Such an approach is risky. However, it resembles playing with fire. So finding your unique ways to succeed is an excellent business decision. Today, we’ll look at several strategies to help you differentiate your brand

What is brand differentiation?

Brand differentiation is establishing a unique and distinctive position for a brand in the market. It highlights qualities and characteristics that set the brand apart from competitors, such as product attributes, design, pricing, customer service, and brand personality. By effective brand differentiation strategy, companies can gain a competitive edge, attract customers, foster brand loyalty, and drive business success. 

It’s about creating a compelling brand identity that communicates a unique value proposition and connects with consumers more resoundingly, ultimately establishing a strong and recognizable brand presence. 

Brand differentiation is crucial to any brand strategy as it aims to establish a unique identity and resonate with customers. It involves showcasing the brand’s distinctive characteristics and introducing innovations to outperform competitors and achieve success. 

However, it’s essential to approach brand differentiation flexibly, as the features that set a brand apart today may become outdated quickly. With the market, competitors, and company constantly evolving, the ability to react quickly is essential. 

Read also: How to use banner in e-commerce?

Why is brand differentiation so important? 

Brand differentiation offers numerous advantages, including gaining a competitive edge, facilitating internal marketing planning, and enhancing customer trust and loyalty. The perception of your brand directly influences purchase decisions and overall sales outcomes, with satisfied customers being more likely to recommend your brand. As many as 68% of customers are willing to recommend a brand to their family and friends if their expectations are met. To successfully achieve brand differentiation, prioritize the following steps:

• unique products or services, 
• competitive pricing, 
• consistent communication with customers,
• original branding, 
• adaptability to market changes.

Now, let’s explore practical steps to achieve brand differentiation goals.

Discover your unique market segment 

Finding your niche in today’s competitive market may seem challenging, but it’s certainly possible and gratifying for the future of your business. Invest time in comprehensive research to identify your unique and specific target audience. If you’re starting a new business, conduct market research to understand consumer needs and assess the profitability of your chosen sector. 

For existing online stores, focus on products that fit into existing market niches. Consider location, demographics, consumer interests, product innovativeness, and unique selling methods. 

Before proceeding, analyze existing and potential competitors using tools like Google Trends or Ahrefs to evaluate their visibility and online communication strategies. Operating in a niche allows you to promote your brand effectively without requiring significant startup capital or engaging in intense competition. 

Be a premium brand in innovation

Innovation is key to gaining a competitive edge and standing out from the crowd. You can leave a lasting impression on your customers and become a successful brand by introducing original technological advancements and business improvements. It’s essential to avoid blindly imitating your competitors’ ideas, as authenticity is a key factor in building trust. In fact, 88% of consumers consider brand authenticity important. 

Product innovations 

Use innovative solutions, aim to boost customer average order value (AOV), and offer benefits for customers such as enhanced functionality, intuitive operation, reduced failure risk, durability, and affordable prices. Provide a memorable customer experience throughout purchasing, customer service, and product usage. 

Explore: 3 ways Marketing Automation can improve customer experience.

Innovative Brands

TrunkClub 

TrunkClub is an innovative clothing company that offers personalized advisory services through a live chat with professional stylists. Customers receive specially selected clothing items based on their preferences and have the flexibility to accept, reject, or exchange the items. 

Frank Body

FrankBody distinguishes itself from competitors through captivating graphic designs and creative slogans showcased on its website and product packaging. 

Here are some notable examples: 

• “You know who’s a babe? Read the first word.”
• “Hi babe, I’m a frank body.”
• “I’m committed to being climate positive by 2023.”
• “What’s hot?”

Highlighting its innovative approach, FrankBody features a loyalty program called “Hotel Pink.” Customers are invited to join a virtual hotel where their engagement unlocks access to exclusive rooms, discounts, and VIP perks. 

This unique initiative taps into the power of customer rewards, as studies indicate that up to  83% of customers exhibit higher loyalty to companies that offer personalized incentives and discounted prices. 

Build strong relationships with emotional marketing

Achieving a solid position in a competitive market and gaining customer trust requires effective strategies. Emotional marketing is crucial in capturing attention, building long-term relationships, and standing out from the crowd. Studies show that 86% of customers who emotionally connect with a brand are more likely to make repeat purchases and hold a higher value. With traditional marketing approaches falling short, embracing innovative methods is essential to maintain a competitive edge. 

What is emotional marketing? 

Emotional marketing is a powerful technique that prompts users to take desired actions. It influences the behavior by strategically targeting users with persuasive messages that evoke emotions like fear, joy, or anger. Research shows that 85% of emotionally connected customers exhibit brand loyalty beyond loyalty programs. 

The objectives of emotional marketing include:

• build long-term relationships,
• enhancing performance and efficiency, 
• expanding the customer base, 
• creating memorable experiences. 

Emotional Marketing in Action: practical examples 

Coca-Cola 

Coca-Cola, a popular carbonated beverage, uses emotional marketing in its ads to create moments of pleasure for consumers. The brand is often associated with family dinners and special events. Additionally, Coca-Cola allows customers to personalize labels for special occasions like Valentine’s Day, weddings, and others. 

Watch video: Coca-Cola Family Feast | Coca-Cola Zero Sugar | Coca-Cola

Allegro’s Christmas spot 

Allegro Christmas ads, like the viral “English for beginners,” exemplify successful emotional marketing. In the ad, an elderly man uses Allegro to order an English course book to study and travels abroad to visit his grandson with whom he finally can communicate. The emotional appeal and storytelling make the ad memorable, with Allegro subtly incorporated into the background. 

Website accessibility and product availability

As an online store owner, it’s crucial not to overlook optimizing your website’s functionality. Creating an enjoyable browsing experience for your customers demonstrates a genuine commitment to their needs, setting your brand apart from the competition. 

According to the World Health Organisation (WHO), approximately 15% of the population faces some form of disability, presenting a significant market segment. Ignoring digital accessibility means missing out on potential customers and the associated profits. Unlock this untapped potential by prioritizing digital accessibility in your e-commerce strategy.  

What is digital accessibility? 

Digital accessibility goes beyond accommodating people with disabilities. It encompasses creating inclusive products, services, and virtual environments that address various accessibility barriers. 

This includes individuals:

• facing digital exclusion, 
• affected by geographical limitations, 
• bound by financial constraints, 
• or lacking digital literacy skills (i.e., seniors). 

Prioritizing accessibility ensures equal access to products and services for all customers, promoting ethical practices and positively impacting your e-commerce sales performance. To ensure compliance, refer to Web Content Accessibility Guidelines, WCAG, developed by the World Wide Web Consortium (W3C) and other experts in the field. 

Website accessibility best practices 

To enhance the user experience of your online store, pay attention to the following examples. Create a memorable and enjoyable shopping experience for all your customers. 

Alt text 

Instagram has implemented a feature inspired by TikTok that allows users to convert alternative text to speech. This feature is particularly beneficial for visually impaired and blind individuals, as it provides descriptions of images for better content comprehension. 

Properly crafted hashtags 

To improve accessibility for visually impaired and blind individuals, writing hashtags correctly is crucial. Reading devices that assist those users separate words in a hashtag based on capital letters. Therefore, writing hashtags in an accessible form is essential. 

For example, #SocialMedia, instead of #socialmedia, #SummerInspirations instead of #summerinspirations, #MomentOfThruth instead of #momentoftruth, and so on. 

Explore: 3 ways Marketing Automation can improve customer experience

Color contrast and text scaling 

To ensure website accessibility, it is vital to follow W3C guidelines that emphasize adequate color contrast for clear visibility and content comprehension. Users with visual impairments or reduced visual acuity, such as seniors, may struggle to differentiate foreground items from the background. Many websites offer a high contrast option, allowing users to change the page’s contrast with a simple click easily.

HubSpot is a notable example of a company providing this feature, enabling users to switch characteristic orange elements to a distinctive blue color. 

Examples of product availability

Products suited for left-handed people 

To ensure inclusivity, it’s vital to consider the needs of left-handed customers when designing products. Many commonly used items, such as writing tools, cutting instruments, everyday objects, and even smartphones, are predominantly tailored for right-handed people. 

However, many companies recognize the importance of catering to left-handed people by incorporating left-handed products into their offers. This support is precious for approximately 10% of the global population. We should mention the Left-Handed Store or Lefty’s – these e-commerces ventures offer left-handed products in various categories. 

By way of a summary

Making your brand stand out in a highly competitive marketplace is an objective that most e-commerce owners and managers strive for. This challenging task surely requires a great deal of effort. Despite the difficulties, remember that the goal of brand differentiation is perfectly achievable if you implement all the effective strategies mentioned above. 

Every so often, introduce small changes or surprise your customers with some detail, so they will know that your brand is constantly evolving. Increase your social media visibility and use striking visuals or graphics to catch your audience’s eye and prevent them from scrolling past your content. By remaining unique, you are sure to stand apart from your competitors and be noticeable – the key is to make your customers remember your business. 

Good luck!