admin posted on July 06, 2009 10:58
COMING OUT ON TOP IN A COMPETITIVE WORLD
Competition affects nearly every business BIG or small—if you don’t have a competitor you are a rare commodity.
Historically, small businesses only had to compete with those providing similar products and services in the same regional area. However, with new technology advances, customers can purchase products and services worldwide. This creates a whole new field of competition.
Out of state pricing or global pricing may change dramatically making it nearly impossible to beat your competition based on prices alone. Nonetheless, with a little research and creativity, you can break the competitive sound barrier leaving your competition far behind.
Here a few secrets to ousting your competition:
Customer Service:
This is where every business owner has the chance to outshine their competitors.
- Listen to your customers. Pay attention to their needs, wants, & values. Ask the right questions to find out what they are looking for.
Don’t assume you can fix their problems with the products and services you provide without listening intently to their concerns. Ask at least 5 to 7 questions minimum to gather information to see if there is a fit.
- Use short 5 question surveys on a monthly or quarterly basis to gather more information from your customers to find out how satisfied they are with your products or services.
With this information, you can improve your services and products to better fit their needs. New products and services may also be created from the information gathered.
- Create customer service policies and procedures to address each cycle of service. For example, answering the phone in two rings or less, or greet your customer like you have been waiting for them all day. If your competitor lets the phone ring four to five times, they will probably lose a great deal of potential sales. In other words, how is your customer going to be cared for from the beginning to end?
- Pay attention to their verbal and non-verbal communication while creating both a subconscious and conscious bond with your customers. Make sure you are communicating to your customers genuine consideration and compassion. If your customers perceive that you really care about serving them, they will spread the word and return often.
- If problems arise, assure them that your company will take action to resolve it quickly. Allow a reasonable amount of time to deliver on a promise, but deliver solutions ASAP. Taking care of your customers in a timely matter is critical to the success of every business.
- Make sure your current customers are your top priority. You will win the loyalty of customers if you look out for their best interest first. If you try to push a product or service on a customer that they don’t need, want, or value it will permanently damage the relationship.
Rather than focusing your attention on increasing sales, focus on increasing customers and customer retention—the sales will take care of themselves.
Availability:
When it comes to customer service, availability may be the only reason why customers use your services over your competition. If your customers call your competition at noon and they are literally out to lunch, you will have an advantage over them when they call and you are available. What does it communicate to the customer if you are always available and are ready to answer their questions and concerns immediately?
Be there for your customers and follow up with them regularly. Always return calls in a timely manner and never make the customer feel like you are in a hurry to get off the phone.
Price:
Are you really going to beat your competition by offering the lowest prices? I’ve met many business owners who made the mistake of thinking that competition begins and ends with who has the lowest price. That isn’t necessarily the case because other factors, such as customer service, are just as important.
However, price is still important, so you need to make your prices competitive. Make sure you know what your true costs are and how to price your products and services to always make a profit. If you are providing great products and services, you should be compensated fairly. Customers want to make sure you stay in business if they are pleased with what you offer. In fact, many customers will pay more money more often if you provide additional value.
Customers always want the best products and services at the best price for what they are receiving. Even online customers will look for what they are receiving in return or the biggest BANG for their buck.
Benchmarking & Managing the Numbers:
Comparing your business to others in your industry of similar size nationwide will also help give you a better picture of how you stand compared to your competition. Successful businesses will also use cost accountants or management accountants to help them prepare budgets, forecasts, pricing structures, and calculate overhead costs to gain a competitive edge.
A business owner who knows and understands their numbers, and who works closely with their cost accountants know when a deal is good or bad for both parties. They may lose a bid to the lowest bidder, but they also know that the lowest bidder will soon be out of business.
A SWOT (strengths, weaknesses, opportunities, and threats) analysis can also be performed to understand more about your competitors. This information can be used to turn companies’ weaknesses into strengths, prepare them for additional threats, and create new opportunities. The more you know about your competitors, the more fire power you will have when your customers are shopping around.
Adding Value:
There are many ways to increase the overall “value” of your products and services. Start with using your USP or “Unique Selling Point,” when marketing and selling. Find something unique that sets you apart from your competitors and use it as a selling point.
Why should your customers buy from you and not from your competitor? Can you sell that same idea online or as you advertise? Use your USP to STAND OUT! Make sure your customers are aware of who you are and what you offer. Focus on the benefits your customers will receive, any incentive for using your services, additional services that you currently provide, and any special discounts. Do something to add value to the customer’s dollar, and they will love you for it.