Branding
May 09, 2008
Marketing Firms - Brand Thyself
Marketing, advertising and PR firms all work to brand their clients. But how important is brand to these firms themselves? We sought to answer this question in the Wellesley Hills Group and RainToday.com's latest research report and found that brand does indeed make a difference for the firms whose very business it is to brand.
In the Fees and Pricing Benchmark Report: Marketing, Advertising, & PR Industry 2008 published in April 2008, 343 respondents described their company's reputation in its target market as either "very well-known" (brand leaders) or "not very well-known." Exactly one-quarter of the responding firms said they were "very well-known" and three-quarters indicated they were "not very well-known."
Here are four undeniable benefits the self-described "very well-known" companies enjoyed.
1. Brand leaders have increased their fees over the last two years.
Brand leaders were more likely to have increased their fees over the past two years: 79% of them have increased their fees, compared to 63% of less well-known firms.

2. Brand leaders have experienced annual revenue growth.
Along with an increase in fees, brand leaders were more likely to have seen their annual revenue grow in the past two years, while the lesser-known firms were more likely to have seen their revenue levels stay the same:
- 79% of brand leaders "grew" versus 65% of lesser-known firms
- 23% of lesser-known firms "stayed the same" versus 12% of brand leaders
3. Brand leaders receive higher fees by up to 33%.
Brand leaders not only priced their services higher than their lesser-known counterparts, (41% of brand leaders are premium-price firms vs. 24% of lesser-known firms), but they also got higher fees for their services.
The percent increase that brand leaders actually realized versus non-brand leaders by level of professional is as follows:
- Highest-level professionals: 33% higher
- Upper-level professionals: 13% higher
- Advanced-level professionals: 4% higher
- Mid-level professionals: 20% higher
- Entry-level professionals: 27% higher
4. Brand leaders are more profitable.
Brand leaders were more likely to have been profitable in the past year: 69% of brand leaders were profitable versus 56% of lesser-known firms.
Making the Financial Case for Branding
Arguments about brand are common. Brand advocates tout the need for, and the value of, brand. Skeptics decry the value of branding, with calls of "show me the data," "prove the case," and the occasional "branding is fluff and puffery and doesn't do anything."
Lest there be any further argument about the value of brand, our research shows that firms that are well-known in their target markets receive higher fees, see their revenue grow, and earn higher profits than lesser-known firms.
This is not to say that lesser-known firms can't generate premium fees, grow, and profit. They can and do. But it seems the brand leaders have a better chance of doing so and have an easier time of it.
February 05, 2008
The Differentiation Myth
Last Wednesday the first part of my article The Differentiation Myth ran in RainToday.com. Although only the first half of the article was published so far, it received quite a number of responses (even one guilt/shame trip!)
Here are a few of them (responses, not guilt trips):
While I found your article “The Myth of Differentiation” entertaining and somewhat interesting, you unfortunately fell flat in the valiant attempt to prove your point. While you hooked your eager readers like me in the opening paragraph, there simply was not enough substance that followed to solidly prove your underlying premise.
Where’s the beef? The companies you cited as examples of poor differentiation strategy clearly deserved criticizing. They were indeed off the mark by a mile. But those weak examples alone did not “destroy the myth.”
Honest differentiation is a powerful marketing tool when properly applied. I’ve used it in my business and have done extremely well financially. It can, and often does, set a service or product apart, giving it an edge in the “positioning of the mind” (Troutt and Reiss).
Many of us out here love reading your anti-traditional thinking, but back it up with concrete evidence that truly sways opinion.
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Thank you for a clear, common-sense rebuttal to the over-used, over-simplistic differentiation planning framework. The issue that I have with this approach is that differentiation becomes the goal. Being or sounding different for the sake of contrast carries the risk of choosing an ineffective path. Taking the thought to the next level, differentiation isn’t a valid strategy. If competitors are failing to meet market needs, then the strategy is to align products and services to better meet needs. The strategy isn’t to be different, it’s to address voids.
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Mr. Schultz' blog on the Myth of Differentiation was thought provoking, possibly because I just spent two hours yesterday at a networking event. I often ask prospective clients and agencies how they differentiate, and typically I get similar answers, stated in different ways. After reading this article, I reflected on my ‘elevator pitch’ and quickly realized I can also be placed in the category of uniquely stated sameness.
I do however believe that organizations can and do differentiate, however that differentiation is often based on actual client experiences, not on product or services. It is difficult to articulate in a short elevator pitch, however these experiences can be brought out through examples i.e. “clients tell us they were surprised and delighted by our….” Time for me to rethink my own elevator pitch and website copy and focus more on actual client experiences then interesting and ‘unique’ ways to state what everyone else is already doing.
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The "need" for differentiation grew so strong because companies thought that customers needed a way to to see them differently from their competitors. For some companies this worked but there are only so many USP's. Eventually all the points that companies used to differentiate themselves actually made them all look the same. Perhaps they should just have asked customers what they wanted in the first place.
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Your article on differentiation is misleading for small businesses looking for guidance. Being unique, which we all are - and articulating it are two different things. The low quality promotional copy used in your article to illustrate your point is most often written in-house or by hacks. Generalizing from there is...misleading to your readers, particularly when nothing is being offered as an alternate or better way to go. Shame on you!
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In the first part of his two-part “Myth of Differentiation” series, Mr. Schultz muddles the meanings of the words “unique” and “different” and narrowly defines differentiation as a communications process (“differentiating to the client”), ignoring the value of differentiation as a process of introspection—figuring out what makes you different from the competition so that you can better position yourself to your market or client.
First of all, the words “unique” and “different,” while synonyms, do not have identical meanings. In order to be “unique,” something must be different from every other thing in existence. Answering the question, “why are you unique?” is nearly impossible, because the comparison set is so huge—the entire universe. So I think that the word is usually used poorly in marketing, to describe a firm that isn’t really unique (or, at least, probably couldn’t tell you how it’s unique).
But the word “different” sets the bar lower, on a scale we can deal with. Something is different only in terms of how it compares with other things in the same limited category. In thinking of what makes a firm different, we consider the direct competition, and think about what makes us special.
This is an absolutely necessary part of positioning your firm for a market or a specific client. Otherwise, you’re just talking about yourself, without a competitive context, and you have no way of anticipating how effective your words will be in reaching your client. Once you know how you’re different, you don’t necessarily need to say to the client “We’re different because…” but your understanding of how you’re different can inform ALL of your communications.
I agree with Mr. Schultz that calling yourself "different" or "unique" does not make you either one, but I do believe that an introspective process (informed by research, of course) about how you compare to your competition is invaluable in developing client-focused messages that differentiate your firm from the competition. The real problem isn’t with the words, it’s with using them incorrectly to describe things that aren’t actually different or unique.
January 09, 2008
What Brands Do For Business
Walk around any marketing conference and you can hear folks talking about brand. Typically much of the discussion centers around brand tactics: how to create a brand identity, how to build brand messages, how to test for brand penetration, how to implement a brand, etc. The question I often get from company leaders is more along the lines of, "What should a brand actually do for a professional services firm?" In other words, “Why bother?” In my estimation:
Brands increase sales effectiveness: If a potential buyer says, “I know your company… you have a reputation for doing a great job and treating clients well,” you’ll be in much better shape than if they say, “Now who are you again and why are you here?” Also, we all know that large buying decisions have multiple people influencing the purchase from the buyer side. When your prospect asks around and hears, “Yes, I’ve been following their research for years. They’re a leader in the space,” or “I’ve worked with them before…they’re as solid as they come,” it’ll be much better for you than if they hear a chorus of “Nope…never heard of them,” or worse.
Brands help generate leads: If a prospect knows and respects your company and reputation, they’ll be more likely to accept when they get an invitation to an event, an invitation to download a new white paper, or a telephone call to see if they’d like to have lunch and discuss business. If they’ve never heard of you, the messages can often go unnoticed and untouched. (Until the messages build up enough over time and they’ve seen them for a while, but then you’re starting to establish a brand…) Research supports this argument.
Brands create premium fees and pricing: It may be basic, but buyers are looking for services firms to do what they say they’re going to do. If your brand and reputation a) creates a promise for what the buyer can expect from you, and b) supports the belief that you deliver on your promises, you’ll garner higher fees.
Brands help you beat competition: If a buyer knows he’s going to get top quality, high output, reduced risk, leaders and thinkers, or whatever your brand is they often value that over the lowest price. Without distinct criteria for them to evaluate what you will do versus someone else, or knowledge that what you say is, indeed, what they’ll experience from you, price often becomes a central factor.
Brands facilitate repeat business: When buyers know what to expect from interactions with you, that you keep your promises, and that you deliver at and above their expectations, they’re less likely to switch or stop buying. Boil it down, and a brand is simply the degree to which a buyer prefers to purchase from you versus other options available to them.
Brands draw strong labor pools: In good economies and bad, services firms need to hire the best people they can possibly find. Brands are often a force in attracting the best job candidates and getting them to accept positions at your company versus the others.
Brands increase the value of a company: As discussed throughout, brands help create premium fees, new business leads, strong sales, strong labor pools, and other benefits. These are long-term financial advantages. These advantages translate into higher market value and company valuation, especially because of how long it takes to establish a brand from scratch. This point may only be interesting to the owners of a business, but, then again, they often hold the purse strings and keys to success for brand and marketing initiatives.
November 28, 2007
Creating a Stong Brand Identity
Last week I delivered a webinar on the topic of Marketing Strategy, Planning, and Budgeting through RainToday.com. ( Repeat performance on December 13.) We had quite a number of questions that came in during the webinar and throughout the Q&A time.
One attendee wrote in:
What's involved in developing a 'strong' look and feel in terms of brand?
When it comes to developing and launching brand identity, think about:
- Your Strategy: I know $1m companies bent on having a world-class look and feel that are gearing up to spend six figures on a project with a designer. Typically, they're going too far.
Conversely, I've seen $20m companies that look like they hired a 13-year-old (and not a particularly talented one) to design their website, logo, and materials. I see companies like this hindered all the time because of their look and feel. Conversations go like this:
- Mr. Prospect: No, I wouldn't consider them as a service provider?
- Mike: Mr. Prospect, why?
- Mr. Prospect: Well, I looked at their website and I simply don't think they're in our league as a company.
In my experience, "in my league" starts with, and sometimes ends with, a first impression based on look and feel.
- Leadership: The company has to be ready to spend the money and go through the process to up the ante on how you look. Sometimes it's not a matter of money; it's that leadership doesn't really think it's a priority. Regardless of the matter, when something is not a leadership priority, you can find yourself in a losing battle. (Think Sisyphus.)
- Designer: Designers come in all shapes, sizes, and prices. Hire someone "in your league." A bad designer will say they do the same thing as a good designer "for less." Good designers cost a pretty penny. And they should.
Vet the designer portfolios carefully. They don't need to be huge, but you have to like what you see. If you don't have a good design sense, you'll just have to trust someone who does to help you make the decisions. (If design isn't your thing, don't trust yourself. Smart people with good intentions that have no design sense have succeeded mucking up many a good design with their "helpful feedback.")
- Design Process: Don't get bogged down in the details. Graphic design processes at services firms can devolve into pure pain. (Think Kafkaesque morass.) Read this article to learn more.
- Implementation: The new look and feel needs to be in everything you send out. And, of course, the more you send it out, the more effect you'll get. Just be careful not to get too enamored with the look and feel because it's such great design. The design is a backdrop for the actual messages you want to get out and actions you want prospects and clients to take. It's not the message in and of itself.
August 16, 2007
Tiger Woods and Service Firm Advertising
In the Chasers section of this week's issue of B-to-B - The Magazine for Marketing Strategists (one of my favorite marketing magazines), we are presented an article titled " Selling services all in the image" that analyzes 4 full page magazine ads for service companies.
In an ad for insurance giant Unum, the article lauds the imagery in the ad as well as the use of a case study:
...case histories are often credible ways of demonstrating that an advertiser can solve a problem for a business. Unum explains in copy that it can provide income protection to disabled workers and offer solutions to get them back on the job sooner.
Grant Thornton gets a nod for strong brand imagery as well as connection with a real-life CFO:
Grant Thornton, a provider of accounting and audit services, turns things over in its ad to Brad Johnson, chief financial officer of REI, who sings the firm's praises. The testimonial copy sounds genuine, which is key to convincing an audience that your company's service may be the answer to a reader's problem. And the ad looks clearly like a Grant Thornton ad thanks to its trademark red rose.
The Accenture ad, featuring Tiger Woods, is dissed:
The risk to using a famous pitchman, however, is that his presence may overwhelm the ad—what's known as "vampire creativity." The pitchman sucks all the life out of the advertiser that is making the actual pitch.
It's too easy to mistake this piece for a Nike ad or for any number of other products or services that Tiger represents.
And the ad from offshore outsourcer NIIT...dismissed:
We'll start with the exclamation points in the headline and the first word in the copy: "Possible!" They're amateurish. If the points are so compelling, they should speak for themselves without the embellishment of dramatic punctuation marks. Here are the ungrammatical opening lines: "Possible! When you partner with NIIT Technologies."
Under the subhead: "Our BPO and Contact Center Services," technical help desk is listed twice. And while we're nitpicking, there needs to be a space after the comma and the word right after it: " …no matter what, wouldn't you rather go with …" The ad for this service provider appeared in a major business publication where space is not cheap. It was not money well-spent because the ad's technical problems overwhelm the message.
A few thoughts...
NIIT
Joan Rivers tirelessly seeks out the best and worst dressed red carpet walking celeb. "Does Denise Richards look good in Versace? There's George Clooney, sassy in Armani. What is Phyllis Diller doing with that hair? What do we think of Harrison...."
Wait a minute. Phyllis Diller? That's not fair. Beneath Joanie's dignity to take a pot shot at Phyllis. Pick on someone you own size (so to speak), Joanie.
Same thing goes with NIIT. Anyone can see this ad is horrendous from a mile away. How can leadership of a company with 4,554 people and seemingly pretty good margins put out such a pathetic ad and then face themselves in the mirror in the morning? Amateurish is being nice. All the feedback needed for this ad is, "Don't have a 3 year old design and write your ads." Comparing NIIT to Accenture and Unum...well, that's not fair. (Next time an offshore outsourcer says to me, "Why don't we get no respect?" I'll send them to this ad.)
Unum
The Unum ad looks nice, but the offer goes something to the effect of "Find out how Unum can benefit your business by calling your broker..." Not particularly value added. They might as well just say, "Call and I'll sell you something," which fits for an insurance company. (Next time an insurance company leader says to me, "How can we shake the image of being cheesy sales guys?" I'll send them this ad.)
Accenture
The article picks on the ad for having Tiger-The-Pitchman overwhelm Accenture. I don't think so. Tiger and Accenture are pretty well linked, and if you see the Accenture/Tiger ads enough (and I do because I'm awake, I read, and I don't live in Siberia), Accenture in the message registers. Maybe a non-business person won't key in on the Accenture part, but Accenture's market probably connects the dots.
The ad also features research on high performance. In fact, many ads for Accenture feature research for high performance. The ad provides an easy-to-find landing page for readers to get their copy of the research. This is smart marketing.
Forests and Trees
So we've looked at imagery and copy and we've seen the forest through the trees. Of course, I have a different opinion than the other reviewers (more on the Woods than the forest), but copy and imagery are subjective. They're not necessarily wrong. I'm not necessarily right. And we're both right about the dumdum ad from NIIT. So what?
Problem here is that there's no review of the offers the ads make, no review of the media placement, and you can't see the ads in context of the rest of the marketing and sales process. In my opinion, the article is in the wrong forest. Selling services is not "all in the image."
For the most part, image-based advertising isn't even a good choice for service firms at all for marketing, or at least not a good choice for the lion's share of a service firm's marketing budget.
July 18, 2007
Writingwise, These Are Trying Times
As the publisher or RainToday.com I get both the honor and the chore of reading emails that go something like this:
Mike,
I've been reading RainToday.com for quite some time. I'm a really good writer myself, and I publish articles all the time. Thought I'd write an article for you to consider for publishing. It's attached. Let me know what you think.
Thanks,
Fred G. Sanford
Do most of their articles grab me with interesting openings? No.
Do they say something new and important (or something old and important in a way that still helps me)? No.
Do they have personality? No.
Are they strangling in unnecessary words, circular constructions, pompous frills and meaningless jargon? Yes.
Self-important? Yes.
Not grammatical? Yes.
Unbalanced? Indeed.
Here and there I've typed out my response—and I'm a send button away from catharsis—but I resist. Since I'm feeling a bit saucier than usual, and I'd like to get it off my chest just once, here goes:
Fred G.,
What I think:
Bromidic, platitudinious, banal pap.
Say hello to Grady for me.
Mike
Snooty reply out. Check! Snooty words used. Check! Now I feel better.
Meanwhile, it's not always a lost cause. A gem comes by now and then and redeems the lot.
What does a gem look like, you ask?
Instead of providing the standard list of seven tips for writing well, I'll recommend to you my top writing resources.
1. Read The Elements of Style by William Strunk and E.B. White. As Charles Osgood said, "The Elements of Style is a little book, small enough and important enough to carry in your pocket, as I carry mine. It has helped me to write better. I believe it can do the same for you."
From The Elements of Style on...style:
If you doubt that style is something of a mystery, try rewriting a familiar sentence and see what happens. Any much-quoted sentence will do. Suppose we take "These are the times that try men's souls." Here we have eight short, easy words, forming a simple declarative sentence. The sentence contains no flashy ingredients such as "Damn the torpedoes!" and the words, as you see, are ordinary. Yet, in that arrangement, they have shown great durability; the sentence is into its third century. Now compare a few variations:
Times like these try men's souls.
How trying it is to live in these times!
These are trying times for men's souls.
Soulwise, these are trying times.
It seems unlikely that Thomas Paine could have made his sentiment stick if he had couched it in any of these forms...
2. Read On Writing Well by Bill Zinnser. It's not just the best book of advice on how to get important thoughts across in interesting ways. It's a great read.
From On Writing Well on simplicity:
Clutter is the disease of American writing. We are a society strangling in unnecessary words, circular constructions, pompous frills and meaningless jargon.
Who can understand the viscous language of everyday American commerce and enterprise: the business letter, the interoffice memo, the corporation report, the notice from the bank explaining its latest "simplified" statement? What member of an insurance or medical plan can decipher the brochure that tells him what his costs and benefits are? What father or mother can put together a child's toy—on Christmas Eve or any other eve—from the instructions on the box? Our national tendency is to inflate and thereby sound important. The airline pilot who announces that he is presently anticipating experiencing considerable precipitation wouldn't dream of saying that it may rain. The sentence is too simple—there must be something wrong with it.
But the secret of good writing is...
...right there waiting for you on page 6.
March 14, 2007
Branding Matters
How does brand affect a professional service business' ability to grow? Indeed, does brand have any affect at all?
In the just released research What's Working In Lead Generation, we asked more than 700 leaders in professional service businesses about their lead generation practices and found that the respondent companies with the well-known company reputations were significantly more likely than their "best kept secret" counterparts to say they were "Good" or "Excellent" at generating leads for their services.
In total, the 30% of companies that considered themselves "very well-known" in their target market benefited from the impact of reputation reach while the 70% of companies that thought of themselves as "not very well-known" didn't.

Takeaway: A Rising Tide Lifts All Boats
One argument seems to never go away. On the one side you have people who say, “We need to increase our brand recognition in order to truly succeed with marketing and lead generation.” The other side typically maintains, “Just get out there and sell. Name recognition doesn’t matter.”
Recognition and reputation do matter when it comes to lead generation. 65% of well known companies report being good or excellent at lead generation whereas only 44% of the not well known companies report being good or excellent. If you are well known, whatever lead generation tactics you employ are likely to work better.
In How Clients Buy: The Benchmark Report on Professional Services Marketing and Sales from the Client Perspective, we asked 200 buyers of professional services how they find and learn more about potential service providers. After referrals, “I already knew about the service provider” (a.k.a. reputation or brand reach) was the top approach cited along with, “learning about the service provider by hearing them speak.”
In What’s Working In Lead Generation, only 30% of companies claimed the power of name-recognition in their market. That spells opportunity for the other 70% of firms. The more well known you are, the better your lead generation efforts will work. Of course, this begs the question, “which comes first, the chicken or the egg?” or in this case “the brand recognition or the lead generation success?” In our opinion, they work together.
Caveat: Don't take these results and use them to make your case for getting more money in your advertising budget.
While brand perception can have a tremendous impact on a buyer’s attitude toward a company, and disposition toward purchasing services, the traditional laws of branding do not apply to professional services firms.
Of 33 lead generation outreach tactics, traditional advertising media scored very low in terms of effectiveness:
- Advertising on TV: 33rd out of 33
- Advertising on the radio: 31st out of 33
- Advertising in print media: 29th out of 33
- Advertising in ad-supported websites & online publications: 28th out of 33
Advertising is a way to "get your name out there" as many service business leaders want to do, but it's not necessarily the best approach or use of marketing budget. Build your service brand through your lead generation efforts. If you infuse value in marketing, and sustain your marketing over an extended period of time, you build awareness and esteem for your firm’s services at the same time you generate leads.
January 19, 2007
Who Was the Ad Wizard?
John Wanamaker famously said, "I know half the money I spend on advertising is wasted, but I can never find out which half."
I found both halves. They're in the Boston Business Journal. Nothing against the BBJ – all they do is accept the ads that professional services firms send them. The problem is with the firms themselves; they craft such weak ads.
From just the perspective of the offers the companies make, these ads need some serious work. A quick review of 25 or so ads in a recent BBJ from accounting firms, law firms, management consulting firms, commercial real estate, investment banking, technology services, and other like firms revealed the following offers:
- Free Cost Saving Analysis...
- Call me if you have a project...
- To schedule a meeting call...
- To take advantage of our expertise, call...
- For more information on our services, call... (Offered 3 times.)
- Visit us at our website... (Offered 1 time with a main home page URL, and 1 time with a landing page URL.)
- No offer... (Offered 16 times.)
Comments:
- A whopping 16 times there was no offer at all! I can hear Adam Sandler now, "Who was the ad wizard who came up with that one?" Of course, companies have to make good offers, but without any offer at all, these ads aren't doing much.
- The 'call for more information', 'visit our website', and 'schedule a meeting' offers aren't much better than nothing. Might as well just say, "But enough about me...let's talk about me!" or "I couldn't think of anything to offer you might find worthwhile, but if you want to buy something, I'm around."
- In the "Enough about me, let's talk about me" vein, many of the offers had announcements. Some popular ones were 'we've merged', 'we just hired some staff', and 'we did some work that we're proud of'. Me me me...
- The 'Cost Saving Analysis' – the only offer that even remotely hinted of potential value for the respondent – didn't have any detail about the analysis itself. This could have easily been taken care of by providing a landing page on the company's website about the offer itself and a web form where the visitor can sign up for the analysis. Plus, by providing a landing page and response form, the company could have analyzed the effectiveness of the ad by tracking landing page visits and acceptances of the offer.
- If I were most of these services firms, I wouldn't spend my money on ads in business journals. That's a blog post for another time.
January 05, 2007
Don't Ask Me Why I'm Different
A leader of a company who was considering using my services asked me, "So tell me how you are different?"
I can't stand that question.
Don't get me wrong, I understand it. It's been beaten into every business person's head that they need to be unique...they need to differentiate.
It's simply not true.
Here's what I want from service providers:
- Do what you say you are going to do, and be on time about it. (This is first because it's so important. If only the service providers I've worked with in my life were better at keeping their commitments...)
- Help me buy the most helpful and impactful services from you.
- Help me translate your services into success for my business.
- Be a good fit for the specific needs that I have. If you're not the best fit, help me find a provider that is. Don't shoehorn your service into something that, in the end, won't meet my needs as well as something else.
- Deliver great service as well as great services.
- Stay on top of the developments and trends in your industry and in mine.
- Understand my business and my clients so you can come up with ideas relevant to me.
- Run an efficient operation and constantly improve so I don't pay for your inefficiency.
- Help me understand what's new in your area of expertise so I can apply that knowledge in my business.
- Be pleasant and fair, and work with me through communication or other breakdowns on your end or mine.
Firms that deliver consistently on the bullets above...they're remarkable...they're valuable. I'll buy from them, and I'm constantly looking for them.
Not only do I not care if they're unique or different, I often don't want them to be unique or different, whatever the laws of branding say.
When it comes to your marketing and communications strategy, you shouldn't try to position yourself as different. I have written about differentiation frequently myself, and I've read great articles on the topic such as My Twin Brother And I Are Different: The Myths Of Differentiation Of Professional Services Firms by Bruce Marcus on RainToday.com.
Just because something is different doesn't mean it's good or valuable. I like milkshakes, and I like a really good chocolate one, but I don't think I'd want a meatshake even though, to my knowledge, it's unique. (Listen to the sample of song #3.)
Don't ask me why I'm different. Ask me how I can help.
The answer is more valuable.
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