MN Interactive

Grow your client base by finding your competitive edge.

What sets your business apart from the shop down the block? Is it your price? Inventory? Location? Finding your business’ competitive edge is what differentiates you from your competitors and often, puts you in the lead. Ignoring it on the other hand can lead to disastrous results including in extreme cases a failed business and bankruptcy.

All businesses will have competition they face, be it as a retail store or an online operation. As the economy takes a dive, it’s time to conduct your own fact finding mission – that of researching where your business stands in relation to your competitors.

Competitive research is not about relying on luck or the goodwill of your fellow tradesmen to let you in on their secrets. Instead, it’s about implementing a strategy by accurately identifying your competition, your target market, and your own edge. This can be done by online research, visiting the store, polling your current customers and calculating the research and marketing strategies of your competitors both online and offline.

Once you know what they offer, you can look to build your competitive edge by evaluating the areas in which you can stamp your own unique features.  Begin by asking yourself the following questions:

• Have I defined my target audience?
• Have I calculated my market segment?
• Can I track my competition’s marketing moves?
• Do my competitors have a USP (unique selling point) of their own?
• Does my company have a USP I can develop on?
• Who are my current customers and are they loyal?
• Do I have a customer service policy in place and am I sensitive to the customers current and future needs?

Once you have the answers to this you can get into  more specifics by developing your competitive edge around one of the following parameters:

Customer: Define who your customer base is by asking the following questions: where do they live, how old are they, are they male or female (primarily), do they shop on a regular basis, do they shop in store or online, how much do they spend on average, would they be willing to spend more with me? A great way to identify your customers immediate/future needs is by listening to what they have to say via one to one chats, polls, surveys and in-store promotions.

Pricing: Beating the competitor’s price is a sure-fire way to gain customers, but they might not be repeat customers, and a constant lowering of prices might not give you the profit you seek. Therefore, if you are looking to lower prices, it’s important to evaluate where you can cut corners. Other ways to lure in customers are by offering specials or promotional offers, coupons, discounts, and money back guarantees.

Product: Your product (or service) is your bread so to speak and without it, you don’t have a business to run. Your company’s entire reputation is built around it, so it’s crucial to reexamine your offerings every 6-12 months to ensure they are still in demand. Ask yourself the following questions: is  my product durable, reliable, priced well, easily recognizable? Sometimes all it takes is rebranding to make your product stand out from the rest.

Below is a sample of a before and after packaging re design that we performed for a client.

[Before]

[After]

The same holds true with your inventory. Do you have an efficient inventory flow? Can you keep up with customer demand? Note what products sell and those which don’t. It may be the simple case of installing a software like our MotoCMS for auto parts and accessories manufacturers, which allows you to keep track of your inventory, and sales in one go.

Marketing Strategies: While your product might be your bread, your marketing strategy is your ticket to selling it and you cannot venture out without a firm marketing plan for yourself and a firmer understanding as to what the rest of the industry offers. Analyze succesful brands and build up your own using their strategies. Likewise, tie up with a marketing agency to get professional input as to what you need to be doing. Be inventive, be creative, but always bear in mind your target audience, your competition and a back up plan should you need an alternative strategy.

Customer Service : Lowering your price might gain you a few extra clients, but likewise, going the extra mile through personalized service will also get you the same results. Often, good, old-fashion customer service can outdo expensive technology and high-fangled gadgets. Wow your customers and gain their goodwill. 

Online presence: Location is important, but you don’t have to be in the heart of the city to gain an edge over your competitors. More and more shoppers are going online to research and buy products and services. Do you have a strong web presence? Can you enhance your visibility with an interactive website? A new design? A web store? There are plenty of options available no matter the business’ size or specialty – speak to a designer to see which ones suit your business best.

In the end, what sets you apart from the rest is also what enhances and grows your business, so find it, stamp it, and claim it as your own.