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- š How to show product differentiation
š How to show product differentiation
3 tactics, 2 traps and 1 tool to show product differentiation
Hello founders!
Welcome back to āTactical Tipsā by Jerel and Shuo at DECODE, the largest founder community co-hosted across Berkeley and Stanford. Every week, we cover one of our foundersā top questions on how to build, sell and operate 10x better.
Today, building off our previous issues on finding competitive advantages and nailing product positioning, weāll be answering the question, āHow to show product differentiation?ā
And ... want to get ahead of 2026? Weāve curated a YouTube playlist featuring our best founders, operators and investors.
š„ Inside this issue:
ā
3 tactics to show product differentiation
ā
2 traps to avoid
ā
1 tool to leverage
šLetās dive in.
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3 tactics to show product differentiation
š The āanti-heroā
Identify the market leaderās core philosophy (not features) and flip it
If they are about "exclusivity", be about "inclusion"
If they represent the "old establishment", be the "scrappy underdog"
Target the "old way of doing things" and clearly state what you stand against to make your brand memorable
E.g. Salesforceās āNo Softwareā campaign positioned against CD-ROM softwares installed onto local desktops and had "No Software" costumes at conferences
Your value proposition isn't just your product; it's the fact that you are different from the status quo
š The āgraduateā hook
Use curiosity-driven messaging that invites customers to move past a common frustration
Imply progress instead of failure; frame it as āyouāve evolvedā instead of āyou were wrongā
Focus on selling a change in status and a solution to a recognized annoyance
Contrast and show the before/after clearly (e.g. old workflows vs new workflows, old metrics vs new outcomes, old identity vs new identity)
Leverage templates like:
"Unlike [old way], we [new way]"
"We're not [thing people hate], we're [thing people want]"
šÆ Make the enemy explicit
Identify a specific enemy that you call out by name
Name the enemy as a system or practice (e.g. hidden fees, bloated workflows, gatekeeping), not a particular company
In order to figure out who the specific enemy should be, ask yourself:
What gap in the market are you filling?
What is the market leader doing that frustrates your target customer?
What messaging are competitors using that you can flip?
What does your target customer complain about regarding existing solutions?
Whatever the market leader is doing, can you do the exact opposite?
2 traps to avoid
šØ Picking too many enemies
Do not try to be against everything; if you oppose five different things, your message loses its teeth and becomes a blur
Pick one clear enemy and own that position with absolute clarity
šØ Picking the wrong enemy
Don't pick an enemy your customers don't actually care about (or worse, an enemy they actually love); your "villain" must be the source of your target customer's genuine complaints and frustrations
Don't pick an enemy just to be edgy; pick an enemy because it helps clarify what makes you different and better for a specific group of people
1 tool to leverage
š Best practice on showing product differentiation
Lead on 1 single attribute (e.g. speed, customer support, heritage, domain specialty, etc) that matters most to your customers, and choose one that competitors donāt already own
Leverage tools like Competitors app to monitor, analyze, and track competitors' website copy, blog posts, social posts, ad performance, and keyword and email changes
Bonus: 1 trend to spark startup ideas
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