Don't Confuse Value Propositions as Benchmarks - It's a Losing Bet

Customers behave differently across industries, and it's safe to say that within industries, customers have slightly different expectations for what products and services should deliver.

But when you look at competitive industries in isolation, a clear pattern emerges.

Industries Create Their Own Benchmarks

Every industry has created unwritten benchmarks, and businesses have made adopting those benchmarks their goal. Everyone's chasing the same standard.

I worked with an independent gym to understand their competitive position. During market analysis, we discovered that most gyms had settled on two core value propositions: fitness results and physical space/amenities. Every gym was chasing the same two things.

The Problem with Benchmarks

When you compete on industry benchmarks, you're competing against big chains with deeper pockets. It's a losing bet:

• Requires massive investments in space and equipment

• Initial uptake is low

• Customer churn is inconsistent and unpredictable

• Getting customers out of their comfort zone is extremely difficult

The Solution: New Value Propositions

So we did something different. Instead of competing on the benchmarks, we created new value propositions.

We focused on a smaller, specific market segment with a distinct solution tailored to their needs. This shifted the strategy from mass acquisition to building a niche market, then slowly expanding from there.

How We Executed

We worked with two experienced trainers and developed them into subject matter experts in two specific categories. We adjusted their marketing content to speak directly to a specific client need, not to everyone.

The approach was slower, but it worked:

• Profit margins increased significantly

• Customer commitments extended beyond initial goals

• Customer acquisition shifted from expensive general marketing to referrals and repeat business

The Bigger Picture

In highly competitive markets, differentiation makes a massive difference. But it requires discipline:

✓ Refine your offering to what you're genuinely capable of

✓ Develop deep expertise in that niche

✓ Expand slowly from that foundation

Yes, it's slower than mass marketing. But when you have a clear solution for a specific market segment, customers' willingness to pay increases. You stop competing on price and start competing on value.

The lesson: Don't chase industry benchmarks. Create your own value propositions for your own market.