Differentiation is, literally, what separates you from your competition. It’s why your customers will only buy from you, no matter what the other guys are offering. When you hit just the right differentiator for your target audience, you’ll convince them that they can only get their desired outcome from you.
What is differentiation?
Differentiation is what makes your product unique and valuable for your target audience. It’s what sets you apart. Grabs attention. Says to the world “I’m the only place you’ll find THIS!”
It can take many forms. Price can be a differentiator (“best value!”, “Cheapest rates!”). Quality can be a differentiator. Brand names and social cachet (aka. “perceived value”) can be differentiators. The fact that your product is on Oprah’s “Favorite Things” list is a differentiator. Features can be differentiators, but features can also be easily copied by competitors (which means if people love a feature, it won’t be a differentiator for long). Longevity, even, can be a differentiator (“Dine at London’s oldest restaurant”). It can be your company ethics, your founder, your driving philosophy, even your personality.
Most importantly, the differentiator you choose to highlight in your value proposition and marketing should be something no one can take away from you.