How many times have you heard that certain areas of business are becoming commoditized? When I started hearing the phrase muttered in marketing research, it applied to one or two specific areas, but even then, it was a weak argument. I don’t believe we’re selling commoditized services, but many of the buyers do. Perception is often reality, especially when we don’t do anything to combat it. When this happens in any industry, it signals that there are serious issues on the horizon. Let’s take a look at marketing research and examine what is happening:

• How about price pressure? Before you blame the economy, let me point out that pricing related to many services has been driven down to ridiculously low rates and it started happening before the recession.
• What about reduced loyalty? Yes, many of you reading will talk about your long-term clients and all of your great relationships, but as price becomes more of a factor, unless there is significant value in what you offer over your competitors, there is little incentive to be loyal to one or even a few suppliers.
• And how about decision maker roles? The days of dealing with the owner or senior executives are gone in many sales situations. The motivations of someone in a project management or middle management role are often different than senior staff. When many companies are laying off staff and those that remain know it’s a tough job market, they are very likely to become protective. This often means saving the company money by selecting the lowest price or going with the vendor that will make them look the best overall. Taking risks is not likely to happen when people fear for their jobs.
• How about the introduction of procurement departments? The “P” word has become more and more popular for various reasons. Often these groups use price as a very large criterion for making purchases, moving closer to the commoditization argument.

As an industry, what are we doing to address it? Addressing quality concerns through committee has only created more scrutiny of our services. I think there are many issues which need to be addressed, but are we going about it in a way that creates trust and leads to more credibility? Or are we making price the ultimate motivator for purchases?

I don’t have all of the answers, but I do believe that buying decisions and motives have changed and will continue to do so. Consumers and buyers of any product or service expect more for their money, or they expect it to be at the best price. I am here to tell you that it’s time to stand out or sit down. That may sound harsh, but we need to start shaking things up as an industry. Most companies have never bothered to really define why they are unique, beyond the simple surface answers. If you can differentiate yourself, or provide a special value in the eyes of your customers, you can win. When you win, you can grow and contribute to the economy and also the well being of your employees and their families. We should all be focused on winning. You need it and our industry needs it.

I often talk to clients and prospects about the challenges of doing business today. When asking what one of the most frequently asked questions they hear from clients, the response is often, “what makes you different from your competition?” How many of you have heard or used this same question? When I ask them to tell me what really does make them stand out, often I hear very unclear answers or information that is far from compelling. You have great people? You’re honest? You believe you work harder? You believe you provide better research? Ok, all great things, but your competition claims the same thing and these are hard to quantify without testimonials (which are a great tool if you can leverage them). The best answer I have heard when I asked why they were different, was simply, “I don’t know.” This business owner and talented researcher was looking to stand out and knew he needed to go beyond what his competition was. He knew some things he thought he was better at, but had never dug deep enough to learn what made him different. We embarked on a series of exercises and discussions to uncover how to position his firm. It came down to creating a new sales message and approach that works, which he is benefiting from.

Where do you begin? Often the answers lie in the very people you rely on to do the work every day. If you have staff that are talking to clients or supporting the teams that do, these people often have gems of information that you aren’t thinking of. Why not get feedback and input from each of them? What words do they believe describe your firm and why do they believe you are great? This is just one step in the process, but you can often uncover real value by investing time in these endeavors. Also, you bring them into the process, creating a sense of ownership and pride. Not only will this improve the work environment and lead to greater loyalty, but you might just learn what really sets you apart. Stand out or sit down, but do it with your team and dig in to create a new future for your organization.

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