No matter the business industry, almost all businesses will come across another company offering a similar product or service. Part and parcel of building a successful business means learning to address competition and implementing a business strategy that works.
In your business plan, you would have researched and strategized at great length about your direct competitors which will put you in good standing when facing any challenges.
However, for those who do not yet have a business plan, here are five great strategies for handling competition in business:
Know your customer
In knowing your customers, you can build a relationship between them and your business. This relationship builds rapport making them repeat customers of your products and services. Building a positive relationship can also lead to referrals for your business.
Knowing your customers gives you an avenue to help solve their pain points, you do this by asking open-ended questions to find exactly what your customers want while using your products or services.
Your aim should be to provide solutions to the customers and supply them what they need as opposed to selling them what you want.
Your product or service will automatically start to sell more the moment you meet your customers at the point of their needs. However, keep in mind that customer expectations can change at any time.
Find your niche
In line with knowing your customers, this can also lead you into building a reputation of excellence in a specific niche. Your business should focus on meeting a specific customer need (or small set of needs) to the very best of your ability and do it better than your competitors. In a niche market, customers are easier to target, and customer retention rate is good.
Understand the competition and highlight your differences
To understand your competition, you need market research. Firstly, you need to look at what your competitor IS doing in order to be successful. Secondly, you need to identify what your competitor IS NOT doing and then try to fill in that part of the market.
Once market research has been completed, understand what makes you different from the competition. Are your prices are cheaper? Do you source your products ethically? Maybe the way you tell your business’s story could put you ahead of the competition. What makes you stand out?
Clarify your message
To attract customers, your business needs to have a clear message. Customers want to know your unique selling point which will tap into their want/need. It is not enough to throw a message in the air and pray it sticks, instead, a clearly crafted narrative will bring customers to you. By consciously considering your audience with each message, you too will be able to communicate more clearly with consumers.
Value your customers.
It is not enough to have a product or service that only serves the need of your customers for a moment, you need to keep customer service as one of your top priorities.
It is paramount that you listen to their suggestions, consider their ideas, and assure that you’re hearing them out. This could even be your competitive edge, what will make your brand endearing to customers.
If you delight your customers with great service, you’ll make loyal customers who will refer your business to their family and friends.
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As a business, it is essential for you to maintain your position in the market and stay ahead of your competitors. Implementing these five strategies will help you get started.
