What is feature differentiation?

Feature differentiation — is the process of distinguishing a product or service in the market through unique or improved features that set it apart from competitors. It helps attract and retain customers by offering them value that is hard to find in other solutions.

For example, if a fitness mobile app has a feature for automatic exercise recognition using a camera, which competitors do not have, this would be feature differentiation. It is important that such differences are meaningful and useful for the target audience.