Potter: It is. That's why firms need to redefine their value proposition to position their services against the competition. In competition, your perspective client has one question: "Why should I choose you over your best competitors?" If you do not have a clear and compelling answer to that question, you are going to lose or be forced to compete on price. Most firms use almost identical language to answer that question. Most of the words that are used to sell their services are very similar to words their competitors use.

Consulting: So, how can a firm differentiate itself?

Potter: Craft a compelling positioning statement that clearly and concisely communicates how you achieve a better outcome with less risk, less client effort, less disruption and fewer surprises—and faster than your best competitor. Most importantly, prove it with relevant stories, benchmarks and client testimonials. That is no easy task. But if it is hard for you to communicate how you are different and better, how does the client choose you? Once clients narrow their options to a short list of the most qualified, small differences in capabilities no longer build preference. At that point, clients want to work with someone they know and trust, someone who knows their industry, their market, their company, their situation, their project, their preferences and their process better. In other words, instead of wanting to know more about you, they want you to know more about them. They don't want to work with a vendor. They want to work with a strategic partner. If you do this and then deliver, you'll have a client for life.

Consulting: I know you're a big believer in client loyalty… are clients still loyal in this environment?

One on One with RA Potter Advisors' Bob Potter

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