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The phrase "little differentiation" is correct and usable in written English.
It can be used when discussing a situation where there is minimal distinction or variation between items, concepts, or groups. Example: "In this market, there is little differentiation between the competing products, making it hard for consumers to choose." Alternatives: "minimal distinction" or "slight variation."
Exact(58)
The generalized musculature of the trunk exhibits little differentiation.
There is little differentiation between the various vocal lines, and no real acting to be done.
The battle's effects followed a predictable course, with little differentiation among its victims' backgrounds.
Because even the mega-hits hew to a fundamental sound, there was little differentiation in the show between what were once singles and B-sides.
"News International assessed the BBC's proposals and found that they not only impose onerous marketing conditions, but also offer little differentiation or benefit to customers of our websites," said a spokeswoman for the News Corporation subsidiary.
The weakness and general impoverishment of the Welsh media also served to ensure that there was very little differentiation in terms of the way that the referendum was covered in Wales.
Mr. El-Erian said Europe's conundrum "basically comes down to three issues: too little growth, too much debt and too little differentiation".
"There is so little differentiation in the category that you have to step above stains in order to break through," Lora Van Velsor, Wisk's director of marketing, said.
"In the modern EU environment there is very little differentiation that we can achieve as a general purpose free zone, so that isn't going to cut it," says Patrick Edmonds, Shannon Group's strategy director and the man tasked with devising the future model.
The prospects for the economy remain difficult, but that does not necessarily mean that all UK listed companies will be affected".So far there has been little differentiation as stocks have risen on the tide up from the lows in the market, but now really consistent higher quality companies are beginning to outperform.
At the surface, there's little differentiation here.
Related(20)
minimal differentiation
small differentiation
short differentiation
insufficient differentiation
low differentiation
insignificant differentiation
slight differentiation
weak differentiation
modest differentiation
negligible differentiation
certain differentiation
minor differentiation
scarce differentiation
little sore
little fidelity
little factoid
little time
little bit
little elaboration
little pig
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com