It’s uncommon to be able to beat your competitor by chance. There are several strategies you could use to keep ahead of the competition. So how can you beat your competitors? Here are 5 ways to beat your competitor.
You should always try and stay ahead of your competitors. And, of course, if you are up against a mega success story, it can be difficult. Then there are the competitors you don’t even know about. As you know, there’s no simple solution to beat your competitors. But having a Competitive Intelligence program is a good start. And, having realistic assumptions. It takes time to build trust and develop relationships. And after all, it’s all about relationships.
Competition exists in every market: every market, no exception. “But my business is different because, well, you see we don’t really have competitors” is something we hear occasionally. This statement is always wrong. Here are 5 ways to beat your competitor.
1. Competitive pricing
One of the easiest ways to beat your competitor is to be more affordable. To set the ideal price point isn’t easy. It would help if you had a good picture of how you compare to your competitor’s offering. Why they price like they do? Then determine how their product or service creates more value for their customers. You have to show that you offer more value. And make sure it’s communicated clearly to them. Otherwise, they will not care and will just see you as a more expensive option.
You may be in an industry that the only way to beat your competitors is by out pricing them. Then you should already have an idea on what they charge. Pricing and continuously track them. Of course, it’s a race to the bottom, and there will be very few winners. Best, make sure to focus on existing market rates and set pricing to compete with competitors.
The best pricing strategies though, are not always about selling as cheap as possible. Your target customers will still segment in lower, middle and upper tiers. In this case, reducing prices is going to put some off. So work on knowing your customers. When you just need to know something to help you generate sales. That’s where Competitive Intelligence comes in.
2. Find your niche in the market
Building a niche is very challenging and worrying.
“Wow, you want us to take away all those potential customers and just focus on these few?”
We know this and have been juggling this ball ourselves for a while. But the more niche you are, the less competition you have. Living in a big market may feel more significant. But more people are offering all sorts of things to steal your customers. You more niche your USP is the less room there is for your competitors. Being niche and specialist results in a relevant, sought after scalable business. Also, it is easier to target a customer’s niche market because there are less of them. And of course, if you do a good job who else is going sneak in and offer something better for a lower price.
3. Customer pain points
The best way to win business is to solve your customer’s problems and needs. And better than how your competitor does. Of course, easier said than done. When promoting your business to prospects, ask them questions to isolate pain points. Find out what they want and then provide it. Also, look at those prospects who decided not to buy from you and went somewhere else. Use a structured Win-Loss Analysis to find out why an opportunity went elsewhere or chose you. Isolate pain points by asking the right questions using the same language and tone of voice as them. Make sure you isolate the decision-maker in their business. The one who can buy something from you to relieve their pain.
4. Change your business models
Look at other industries and the companies who are success stories. Not just for inspiration. Look at how they deliver their excellent product or service. Is there anything you can learn and develop into your market sector? Anything that could improve your existing business model? This activity may, of course, take a while to do.
5. Great customer service
The best way to keep customers and develop a great reputation is to provide excellent customer service. It’s the greatest way to build customer loyalty. And also differentiate yourself from your competitors. Excellent customer service is the easiest thing to do and the easiest to get wrong. Be efficient, responsive and ensure your team are creating relationships. Not just paying customers. Your team must smile at customers either face to face on the phone or via email. Happy, professional, approachable and grateful for the business. Oh yes and have a good knowledge of their offering.
Always respond to customer queries. Encourage them to talk and not get them off the phone as quickly as possible. Be problem solvers. Make the product and service secondary to the business relationship. They will not want to go anywhere else.
Remember, your competitors aren’t lazy. They are also innovating. New ones are disrupting the market. Others who are going seriously to challenge you are about to enter the war. Your business should innovate all the time. Be excellent to work within a manner that the competition finds hard to imitate.
As you can see, it’s uncommon to be able to beat your competitor by chance. So how can you beat your competitors? We offered 5 ways to beat your competitor. There are many others too you could use to keep ahead of the competition.