Unique + Indispensable Value
Why and How to Differentiate | The Implications for Authority, Community, and Growth
Summary
When I was a kid I liked the color orange. It was my favorite, in part, because everyone else chose blue or pink. Though I couldn’t articulate it when I was young, I always wanted to stand out from the crowd. This proved to be a durable trait that has served me throughout my career. It helped me build a unique niche so that I could work with cool people to solve interesting problems.
I write about associations and innovation. This an article about the importance of differentiation. People have inherent expectations when engaging with an association: membership, networking, some advocacy, some learning; you pay a fee and you receive value. This is common and expected, but I think we can do better.
I’m interested in what distinguishes us or makes us special. As you will see, there are huge advantages to differentiation. Read on and please let me know what you think. I lead the product community, a product development learning community designed specifically for associations. Let’s compare ideas and build something great.
The Power of Differentiation
“In order to be irreplaceable, one must always be different.”
Coco Chanel
Differentiation is a superpower; it is the practice of establishing a distinct identity and value proposition that sets an association apart from competitors and alternatives in meaningful ways that matter to one’s target audience. This means moving beyond generic professional development and networking to become the indispensable resource for a community's unique challenges and aspirations.
Association leaders face an increasingly crowded marketplace where members have countless options for professional growth, networking, and industry information. Differentiation provides several important advantages:
Strategic Clarity and Focus. When we clearly define our unique position, every decision becomes easier. Resource allocation, program development, and partnership opportunities align with a coherent vision rather than scattered efforts to please everyone. This focus allows leadership to say no to good opportunities that don't serve their differentiated mission, creating space for great opportunities that do.
Sustainable Competitive Advantage. Generic associations compete primarily on price and convenience, leading to a race to the bottom. Differentiated associations compete on unique value, creating pricing power and member loyalty that transcends economic cycles. When your association becomes known for solving specific problems exceptionally well, members view you as irreplaceable rather than interchangeable.
Organizational Confidence and Innovation. Differentiation encourages calculated risk-taking because the association has a clear framework for evaluating new initiatives. Leaders can innovate boldly within their defined niche rather than tentatively copying what others are doing. This confidence attracts high-caliber volunteers, staff, and partners who want to be part of something distinctive.
Measurable Impact and Growth. Differentiated associations can track their success against specific outcomes meaningful to their niche rather than generic membership metrics. This creates opportunities for diversified revenue streams, deeper member engagement, and expansion into adjacent markets that share similar characteristics or challenges.
I think it’s important for associations to think deeply about creating a unique value proposition. It helps us gain superior competitive advantage and draw new members to a community of excitement and possibility. Now that we’ve looked at the muscular positives, let’s look at the problem of looking like everyone else.
The Problem of Looking Like Everyone Else
“If you're selling the same merchandise that's commonly available, and you've got no point of differentiation, you're dead.”
In a competitive market, looking like everyone else becomes a problem, in part, because being all things to all people is a recipe for mediocrity. While being similar can be a strategy for building bridges, it also presents challenges and potential pitfalls. The primary problem lies in compromising values in an attempt to please everyone. This can lead to inauthenticity or a dilution of core identity.
Differentiation is key to attracting and retaining members, building a strong brand, and achieving sustainable growth. Here's why blending in can be detrimental:
Market Saturation. When associations offer similar products or services, members find it difficult to distinguish between them.
Customer Confusion. If your offerings are indistinguishable from competitors, members may become confused about what makes your association unique or better. This confusion can lead to indecision.
Brand Dilution. A lack of differentiation can dilute your brand identity, making it less memorable and impactful.
Innovation Stagnation. The pressure to differentiate often drives innovation as associations strive to offer unique solutions to meet member needs. Without this drive, innovation can stagnate, leaving you vulnerable to competitors who introduce new offerings.
Revenue Impact. When members primarily focus on price due to lack of differentiation, it can negatively impact revenue and profitability.
Strategic Vulnerability. Failing to differentiate can leave your association vulnerable in a dynamic market. Competitors who successfully differentiate can gain market share and build a loyal customer base, potentially leaving you behind.
In essence, differentiation is important for attracting the right people to your association. By highlighting what makes you unique, you can attract members who specifically value those attributes. Likewise, unique offerings can create a sense of exclusivity and trust, fostering stronger relationships helping to build member loyalty.
Differentiation can also reduce price sensitivity as differentiated products can often command higher prices because members can perceive their value to be greater. Ultimately, successful differentiation helps build a competitive advantage and establishes an association as an industry leader.
Actively working to differentiate your association, whether through product features, member experience, branding, or operational efficiency, is essential for long-term success in a competitive market.
Serving a Growth Membership
“When you have some success, the feeling of being an imposter can be real. Who am I fooling? But when you create things that only you with your unique talents and experience can do, then you are absolutely not an imposter. You are the ordained. It is your destiny to work on things that only you can do.”
Kevin Kelly
From the member perspective, differentiation transforms the association from a nice-to-have professional accessory into a must-have strategic resource. Here are four reasons why:
Relevant, Actionable Solutions. When associations deeply understand their specific member segment, they can develop programming, resources, and connections that directly address real challenges. Members receive targeted value rather than generalized content; they must adapt to their unique situations.
Authentic Community and Belonging. Differentiated associations create spaces where members feel genuinely understood and connected to peers facing similar challenges. This goes beyond surface-level networking to foster relationships built on shared expertise, common struggles, and mutual growth opportunities.
Career and Business Acceleration. By focusing on specific niches, associations can provide more sophisticated, advanced resources that help members progress faster in their careers or businesses. The association becomes a catalyst for member success rather than just a professional social club.
Trusted Guidance Through Complexity. In rapidly changing industries and professions, differentiated associations serve as expert guides who understand both the broad landscape and the specific implications for their member community. Members rely on the association's specialized knowledge to navigate uncertainty and identify opportunities.
Differentiation ultimately transforms associations from membership organizations that happen to serve professionals into professional communities that happen to have members. This shift creates exponentially more value for everyone involved while building the kind of sustainable, mission-driven organizations that can thrive in nearly any economy.
Multiplying Our Uniqueness
“The healthiest gardens aren't monocultures; they’re better off with different varieties that complement and strengthen each other. Your communities work the same way. They bring together different types of people who each contribute something unique to the ecosystem. Your quiet observers are just as valuable as your active participants.”
Laura Zug
Innovation is differentiation. Other than serving different industries or professions, I find that many associations look the same. This is partly a function of caution and partly a function of tradition. At our timeless essence, we are communities. Our opportunity lies in leveraging this desire to connect to create new value by trying new things.
To be the unique authority in a particular space requires two seemingly contradictory things: niching down (being uncompromisingly specific) and using this focused positioning to widen the circle. Niching down means identifying and boring into tough-to-solve problems. Doing this well, creates a catalyst for innovative people to join and participate. It will pull them in as influencers interested in creating new value to solve important problems. Over time, people will be drawn to the energy and buzz of focused action.
The ultimate goal of an association is to become indispensable. This is a growth shift from being different to being the singular choice. Doing this well can have a manifest return. It means we’re deep in the innovation space (through investment and commitment), we have a willing coalition open to change (a community eagerly navigating the what’s coming), and we’re willing to authentically widen the circle (bringing in new people excited to engage).
I lead the product community; we are a learning community because we believe great relationships help us create the value our members want. Remember, product-led growth fuels connection. Join the product community and flip your destiny.
About the Author
James Young is founder and chief learning officer of the product community®. Jim is an engaging trainer and leading thinker in the worlds of associations, learning communities, and product development. Prior to starting the product community®, Jim served as Chief Learning Officer at both the American College of Chest Physicians and the Society of College and University Planning. Please contact me for a conversation: james@productcommunity.us