It’s the dreaded C word! You know, the one who releases your secret product just ahead of you, the company your customers seem to always rave about and the one that just seems to have their strategy tighter than a size 10 woman in a size 8 spanks!
You guessed right, your competitor. Let’s face it, staying ahead of the game is tough and it’s even tougher when there is another business right on your heels or just ahead of you. But instead of burying your head in the sand or starting a turf war, studying your competition can actually be very useful. Don’t believe us? Well, here are 5 things you can actually learn from your competitor (and it does not include stealing their ideas and branding them as yours).
- What works and how to do it better:
So your competitor just launched a great new product line and its all everyone can talk about. Don’t sweat it. There’s always room for improvement. So see where the gaps are and find ways to use your product to plug those gaps.
- It’s all in the strategy:
Let’s face it, business all about strategy, so it’s always worth studying your competitor’s strategy. How do they approach their marketing? What key words and hashtags do they use on social media and on blogs? What sort of branding and distribution channels and strategy have they employed? What demographic are they targeting and what methods are they using? This is particularly key if you are a start up and are entering a market that already has some big players. Studying your competitors strategy can help you avoid some vital mistakes and also save you some cash.
- Pricing:
The pricing and value add of your competitor can provide vital information. While we don’t advice on starting a price war without carrying in-depth research, using both the product/service price and the value offered can help you determine your own price range. For instance, you may decide to rebrand your product as a luxury offering and use your competitors pricing and value add as a guide. Or you can check if you’ve over or under priced your services.
- Innovate or die:
Innovation is the life blood of any business. Businesses are constantly finding cheaper ways to deliver more or new ways of delivering lasting customer experiences. Sometimes it pays off to research on how your indirect competitors (i.e. businesses which offer different services but serve a similar demographic) are innovating. This helps you to stay ahead or at least on the heels of any new trend.
- Customer feedback:
Nothing is better than learning about your competitor directly from the customer. Where they satisfied with the product or service? Was the customer experience great? Did they feel they received value for money spent? Would they go back again and why? What made them choose your competitor over your business? Now it’s important to handle whatever information you receive with some level of professional courtesy. View this process as market research with the sole purpose of identifying gaps and improving your services. Do not see it as licence to broadcast negative feedback about your competitor or hatch a plan to steal clients. Remember if you provide quality services at excellent value, the customers will come.
Have you learnt any of the above pointers from your competitors recently? Or do you have new perspectives to share? Please leave your comments in the comment section.
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