Stand out in commodity markets
In commodity markets, multiple vendors sell exactly the same things.
But not all brands are equally successful. How come?
What factors drive customers’ preferences in commodity markets? How does a successful brand differentiate itself from all the others?
In a visit to a street market in Sommières, France, I noted two vendors selling olives, sun-dried tomatoes, tapenades, dried fruits and nuts.
One vendor had a long line of customers, who were waiting up to 20 minutes in the sun. Despite offering the same products, the other vendor didn’t have a single customer in sight.
Street vendors in France have perfected their marketing techniques over the centuries.
Regional street markets appeared in Europe as early as the 12th century. Sellers who focus on differentiating their brand and delivering a better customer experience have prospered.
10 ways to stand out in a commodity market
What differentiates successful sellers? One seller does 10 things better than its competitors:
- Prime location: This vendor arrives early in the morning to claim a high-traffic spot in a square that serves as the crossroads of the market.
- Social proof: A long line of waiting customers provides social proof, evidence this is the best product available in the market.
- Greetings: As you join the line of customers, a friendly person greets you with a smile.
- Recognition: If you’ve been to this stand before, you see in their eyes that they recognize your face.
- Free samples: The brand welcomes you with a beautiful fat green olive to taste. Free samples especially stand out in this market because they’re rare.
- Speaks your language: When you say hello, the seller picks up even a subtle accent. If your first language sounds like Spanish or English … the seller replies in your language, rather than speaking to everyone in French.
- Product trials: To help you decide between one flavor or another, you get a free taste of tapenade — or two.
- Product quality: This free taste convinces you that you’ve found the best product in the market, the one worth waiting for.
- Faster check-out: This seller handles dozens of different items. But he speeds up the check-out process by pricing most tapenades at the same price. So, he can weigh up 4 or 6 different items and make only one price calculation, instead of ringing up each item separately. This means customers spend less time waiting for the bill.
- Bonus: After you buy, surprise! You get a free gift such as a bag of snacks.
Differentiators like these demonstrate what a great customer experience looks like to buyers – and how you can differentiate your brand from other brands that are nearly identical.
You never forget your experience with a seller like this one. Next time you shop on market day, chances are you’ll return to this same vendor. That’s how brand loyalty gets built.