The best, the cheapest, or the only? Which one are you? Lessons in category creation

There are numerous aspects to consider and work on in your business: marketing, branding, product creation and refinement, customer service, project management, finance, and more. In my opinion, the most critical element is your brand communication. In other words, it's the message you project into the world and, more specifically, what your audience hears and feels when you do.

Early in my relationships with clients, I always emphasize a crucial point: if you want to be successful in any market, you can only be primarily one of three things - the best, the cheapest, or the only. While it's possible to be a combination of these, one must always take precedence. It's important to note that these categories are not created equal.

Being "the best" is inherently subjective. It's a game of favorites, where success depends on having enough people who prefer your product or service. Consider the ongoing debates: Apple vs. Microsoft for the best operating system, pizza vs. ice cream for the best food, Mercedes vs. Tesla for the best cars, or J Crew vs. Macy's for the best shopping experience. The challenge with this approach is its vulnerability - there will always be someone with more resources or a larger audience reach who can claim to be "better."

How about being "the cheapest"? The idea of offering the most value at the best price seems appealing, but it's often a race to the bottom. Unless you have billions of dollars and unlimited time at your disposal, this strategy typically leads to exhaustion and cutting corners on quality. Ultimately, you create customers who view you as nothing more than a commodity. There's zero brand loyalty and little long-term business strategy in being the cheapest.

You might ask about companies like Temu or Shein. While they've found success in the "cheapest" category, it's important to note that these are exceptions rather than the rule. Their success is built on massive scale, efficient supply chains, and often questionable labor practices - a model that's not sustainable or replicable for most businesses.

In my view, the best choice is ALWAYS to be "the only." Creating a category of one allows for brand loyalty, higher profit margins, and long-term success. Let's consider some exemplary "only" brands:

One of my favorite examples is the Nest thermostat. They rarely refer to themselves as a thermostat because they've embraced the "only" mentality. The product doesn't look like a traditional thermostat, and they don't communicate like a typical thermostat company. Instead, they use language like "Now your home has a brain" and "Leave your home with peace of mind." This approach sets them apart in a crowded market. There are many Wi-Fi-enabled home thermostats on the market. But there is only one Nest.

Consider Slack as well. On the surface, it might seem like just another interoffice messaging platform. However, they've created their own language and, consequently, their own category. You're unlikely to hear a colleague say, "Send me an interoffice message about that." Instead, in offices worldwide, you hear, "Can you Slack that to me?" This linguistic shift has helped Slack carve out its unique space.

The beauty of becoming "the only" is that it doesn't matter what type of business you have or how much capital you start with. Figuring out your unique language and becoming "the only" in your category is something you CAN do. In fact, I would argue it's the most important thing you can do for your business.

The psychology behind "the only" is fairly simple. When human beings encounter something unique, it captures their attention and creates a lasting impression. This distinctiveness not only sets a brand apart but also makes it more memorable and desirable. By positioning your product or service as "the only" in its category, you tap into the human desire for novelty and exclusivity.

Creating a category of one isn't just about being different; it's about redefining the conversation around your product or service. It's about shifting the paradigm and offering a new perspective that resonates with your target audience. This approach allows you to control the narrative and set the standards by which you'll be judged.

Here are 3 tips to figure out how to create a category of one for your product or service:

1. Identify your unique value proposition: Look beyond features and benefits to uncover the core essence of what makes your offering truly unique. This could be your approach, your philosophy, or the specific problem you solve in a way no one else does.

2. Develop a distinctive language: Create your own terminology and phrases that encapsulate your unique approach. This language should reflect your brand's personality and resonate with your target audience. Remember how Slack turned "messaging" into "Slacking"? That's the power of distinctive language.

3. Focus on the transformation: Instead of solely highlighting what your product or service does, emphasize the transformation it brings to your customers' lives or businesses. This shift in perspective can help you create a new category that transcends traditional industry boundaries.

While being the best or the cheapest may seem like viable strategies, they often lead to a constant struggle for supremacy or a race to the bottom. By contrast, becoming "the only" in your category allows you to define your own success metrics, build strong brand loyalty, and maintain higher profit margins.

Remember, creating a category of one is not about having a completely novel product or service. It's about framing what you offer in a way that sets you apart and makes you incomparable to others. Whether you're a startup or an established business, embracing the "only" mentality can be your key to long-term success and sustainable growth in an increasingly competitive marketplace.

By focusing on your unique strengths and communicating them effectively, you can carve out your own niche and become not just a choice, but the choice for your target audience. In the end, isn't that what true market leadership is all about?