Finding, understanding, and leveraging your competitive advantage is probably one of the main keys to growing your business. Unfortunately, uncovering the ‘secret sauce’ can be as difficult as the quest to find the Holy Grail. If your company has developed an anti-aging pill and has a worldwide patent on the pill, then that is, of course, your secret sauce. But for the rest of us who have businesses in competitive industries with potentially low barriers to entry, it becomes even more important to understand, and leverage, your competitive advantage.
One thing for sure, you’re not going to beat your competitor by copying them. If you do, you’ll always be behind. You’re never going to get ahead. So here are a number of tips to help you stay ahead of your competitors:
The best pricing strategy isn’t always about lowering your prices.
Solve Real Customers’ Problems
One likely way to beat your competition is to address the needs of your shared target audience better than your competition can. Once you identify the customers’ pain points, you can attempt to solve them by discussing their issues using terminology that the customers use. It’s important to focus your efforts on trying to provide solutions to customers’ issues, not just trying to sell them your products or services.
Know Your Customers
By knowing your customers, you can build a relationship between them and your company, extending the customer lifecycle beyond only a couple of purchases. Using data right in front of you is something many business owners often overlook. Specifically, data regarding customers’ social activity lends marketers critical insight into timing of purchases and related searches. Using these online tools, like Facebook analytics, your company will be able to better understand what ultimately triggers your customer to make a purchase.
Set Competitive Pricing
One of the easiest ways to beat your competition is to offer more affordable pricing. To determine the ideal price point, you need a clear picture of what your competition’s goods or services are priced at. Research which competitors offer the best value. Then you need to determine if what you are offering brings more value to the table and thus should be priced higher. Surveying your competitors’ prices may only take hours and generally requires less time than other competition-reducing methods, especially in Gibraltar where the marketplace is fairly small, with only few competitors around.
The best pricing strategy isn’t always about lowering your prices. Since the market is segmented by lower, middle, and upper-tiered customers, you need to figure out which group is your audience.
In today’s world, it is crucial to innovate, innovate and innovate. That should be your marketing team’s mantra in today’s constantly shifting world of online media. If you want to beat the competition, you need to challenge yourself, and your staff, to improve every single day. You need to develop the mindset that nothing is ever good enough and that everything can be improved. Whether it’s the way you process invoices, the method you do your collections, your website, staff training, products, or the way your business provides customer service, every facet of your business can be innovated and improved upon. The cycle of innovation should extend not just for the leader but for each member of the company. Every employee can improve their processes in everything they do.
Winning in business doesn’t mean copying your competition, it means being better than them.
Great Customer Service is Key
Providing great, and memorable, customer service is a great way to build loyalty among your customers and differentiate yourself from the competition. Customer service needs to be at the core of everything your business does. Too many companies cite customer service as a strength, yet, these companies would be hard-pressed to provide examples of what really makes them any better than their competition. Amazing customer service is more than just words on a piece of paper. It’s about an attitude that needs to disseminate across the entire organisation and everything that your business stands for. Put a priority on hiring employees who have a full understanding of not just your products and services, but your brand as a whole. Don’t rush the process of hiring customer service team members. Finding the right people for the job is more important than filling those jobs.
Remember that whatever you do, winning in business doesn’t mean copying your competition, it means being better than them. You know you’re winning when you’re not looking back at what your competitors do, but your competitors are copying and trying to be more like you, and that’s how you beat the competition. Want to find out what the secret sauce of your business is and how to use it to win customers? Contact us and we will show you how the magic is done!