4 Simple Strategies to Beat Business Competition
Tue | November 2023
In the cutthroat world of business, competition is not just a fact of life; it's a driving force behind innovation, adaptation, and excellence. When Blockbuster, the once-unshakeable giant of the movie rental industry, refused to license its movies to Netflix, a small DVD-by-mail company, it inadvertently set the stage for Netflix's meteoric rise. Forced to pivot and focus on streaming video, Netflix embraced the challenge, transforming itself into a global powerhouse.
Netflix's story is a stark reminder that competition is not about vanquishing your rivals; it's about creating value for your customers and staying ahead of the curve. In today's ever-evolving landscape, businesses that fail to embrace competition are doomed to fall behind. So, if you want to thrive in the business world, don't fear competition; embrace it. It could be the key to your success. In the following sections, we will share some strategies to help you stay ahead of the competition. So read on and start working on your strategies today.
1. Know Your Company and Industry
The quest for business success starts with deeply understanding your industry's landscape. Bill Gates, the visionary behind Microsoft, and Howard Schultz, the CEO who transformed Starbucks, became industry authorities through their expertise and passion for computers and coffee, respectively.
To keep yourself motivated, delve into the metrics that matter in your industry. Identify key performance indicators (KPIs) that you can monitor across all levels of your business, from marketing and human resources to sales. These KPIs will be benchmarks to gauge your progress toward strategic objectives and compare your performance against your competitors.
At One Park Financial, we regularly track KPIs to refine our business practices. Monitoring these indicators is crucial for our success in marketing and credit decisions.
However, success isn't solely about external strategies. Internally, fostering a culture that values performance and growth is equally important. Your employees are the frontline representatives of your company, and their experience and dedication significantly impact customer perception and loyalty. Investing in a positive company culture can boost revenue by up to 80% for customer-facing employees.
Building a culture of engagement requires dedication and resources, but it's an investment in the future. What greater reward could there be than having a team that collaborates effectively and outperforms the competition? This is the foundation for enduring success.
2. Understand Your Customers
Developing a deep understanding of your customers is paramount to crafting a successful marketing strategy and enhancing your market positioning. By understanding your target audience's preferences and needs, you can personalize your messaging, product descriptions, and customer service approach, creating a more impactful and engaging experience for your customers.
Gather insights into your audience's demographics, values, behaviors, goals, and preferred communication channels to create a customer profile. You can collect this information through various methods, such as social media analytics, email subscriptions, surveys, and feedback mechanisms. By analyzing customer data, you can identify common themes, pain points, and aspirations within your target audience. This knowledge empowers you to proactively address their concerns, refine your offerings, and tailor your messaging to resonate with their needs.
Once you've clearly understood your ideal customer, the next step is to craft an experience that seamlessly aligns with their expectations. For instance, if your company specializes in cybersecurity solutions, your ideal customer might be a technology department head seeking a product that simplifies their work and enhances their organization's security posture. To craft an effective advertising campaign, emphasize the tangible benefits of your offering, highlighting how it addresses their specific pain points and empowers them to achieve their goals.
The journey doesn't end when your products or services hit the market. Ongoing customer engagement is essential for achieving long-term success. Listen to your customers' feedback and address their concerns promptly and effectively. By demonstrating your commitment to their satisfaction, you can transform them into loyal advocates for your brand.
Remember, ignoring customer feedback can lead to customer churn and missed opportunities for improvement. Embrace customer feedback as a valuable source of insight, allowing you to adapt and innovate to align with your customer's evolving needs.
Investing in customer profiling and engaging with your target audience can create a marketing strategy that resonates with your customers, fostering stronger relationships, driving brand loyalty, and propelling your business to new heights of success.
To go deeper into creating a customer profile, you can review the following step-by-step guide: How to create a customer profile — with examples.
3. Stay Curious
To stay ahead of the competition in business, you need to be curious and open to new ideas. This means you have to closely monitor your competitors, looking at their business models, websites, and social media to see what they're doing well and what they can do better.
Stay updated on your industry's latest trends and innovations by actively seeking insights from online publications, professional networks, and industry conferences. This knowledge will help you find opportunities to improve your products and services, stand out from your competition, and attract more customers.
To understand your competitors' strategies better:
Look at their innovations and use them to inspire your growth.
Study the essential features and benefits of their products and services.
Think of ways to include or improve upon them in your offerings.
Be ready to change and improve your business model if the market or technology demands it.
BlackBerry is a classic company that could have stayed curious and evolved. BlackBerry was once the top smartphone maker, but they didn't adapt to touchscreen phones. They kept their physical keyboard design. As a result, BlackBerry lost market share to Apple and other competitors and is now a minor player in the smartphone industry. This example shows how important it is for companies to be curious and innovative, especially in rapidly changing industries.
4. Diversify Your Income
Diversify your business income to protect against unexpected downturns. The restaurant industry is a stark example of the importance of diversification. Before 2020, 90% of U.S. restaurants earned revenue from in-house service. When the pandemic forced restaurants to close, those who had diversified their income streams were better able to survive. Many restaurants offered meal kits, online cooking classes, and takeaway service to stay afloat.
To diversify your business income, go beyond offering new products and develop unique ways to market your existing offerings. Start by listening to customers and their thoughts on additional services you could provide.
Here are a few examples:
A restaurant could add vegetarian or vegan options to attract a new market.
A women's clothing store could create a small section with men's or children's clothes to bring new people through the door.
An HVAC company could offer electrical services if customers frequently ask about them.
To identify opportunities to diversify your income, conduct market research to identify customer needs and trends, and analyze customer inquiries to identify areas where you can improve your offerings or expand into new markets. For example, you could survey your customers to learn more about their needs and wants or analyze your social media data to identify trending topics and keywords.
Stay Ahead of the Competition
Do your research and take the initiative to innovate or offer something new that sets you apart. Don't let complacency kill your business. Being a business owner means owning a strategy and hiring the right people to carry it out. Putting significant effort into your business plan and investing in your staff puts you on the right track.
You'll also need capital to make your business ideas a reality, and that's where One Park Financial can help. At One Park Financial, we understand how long it can take to acquire business financing from a traditional funder. That's why we expedite the process, pairing companies with funders that can quickly provide capital.
If you've been in business for over three months and make at least $7,500 in monthly revenue, fill out our pre-qualification form and let us help take your business to the next level with the working capital it needs!
Disclaimer: The content of this post has been prepared for informational purposes only. It is not intended to provide and should not be relied on for tax, legal, or accounting advice. Consult with your tax, legal, and accounting advisor before engaging in any transaction.