As a small business you’ll need a competitive advantage to survive and thrive in your chosen niche. The business landscape is tough because you’ll want the attention and patronage of the same customers as your competitors. You need to differentiate your company from the others to remain profitable. This advantage can be in the form of a unique solution to a problem, superior customer service, or distinct features of your products.
These are some competitive advantage strategies that can give you an edge.
Find a Solid Niche
One of the competitive advantage strategies you can implement is identifying a solid niche. A two-birds-with-one-stone-approach can yield some results, but it may not guarantee your growing small business sustainable and long-term success. Identify a niche but loyal audience for your products and services. This approach allows you to focus all your marketing and product development efforts on meeting the needs and providing a solution to a select crowd. You can customize your approach to cater to specific needs rather than trying to be everything to everyone.
Collect Data
Consider gathering your own data. This enables you to fully identify and understand the needs, wants, and quirks of your target audience. This allows you to provide them with features they want at the price point they’re willing to pay for. Your own data also enables your company to widen its reach because you already know who your target market is.
Create a Deep Customer Connection
Service is often the swing factor when it comes to choosing brands. Customers are likely to choose a company that provides them wtih excellent services. They want better treatment and a faster response to their problems. Train your customer service team to go the extra mile and find ways to delight your target audience. This can come in various ways such as freebies when a customer hits a milestone of choosing your products, early access to exclusive items, discounts, and/or membership benefits.
Become an Industry Expert
A competitive positioning strategy you can implement is becoming an expert in your industry. People will listen to someone, if they deem them an authority in a specific subject. Discuss topics your target audience might have an interest in. Publish this content in a blog, YouTube channel, a podcast, or other social media platform. This allows you to not only provide information to your customers, but also build authority on a subject relevant to them.
Prestige Pricing
Raising prices may seem contrary to small businesses that want to gain more customers. However, it is a proven strategy that creates a prestigious and exclusive perception about a brand, regardless of their size. You can target customers that don’t mind paying more for a better product or service. However, the features of a product and the level of service you offer should justify the high price.
Establish a Strong Company Culture
A strong company culture and identity has a trickle-down effect on everything you do, including customer service and sales. Your target audience would rather buy products from a company that treats its employees well. A strong culture also allows you to attract top talent. Better and well-treated employees can deliver quality service and develop first-rate products.
These competitive advantage strategies enable you to gain more loyal customers, improve your business practices, and differentiate your company from the others in your industry. We at Robookkeeper can provide you with first-rate bookkeeping services for small business owners. Our team of experienced virtual bookkeepers provides you with quality output.
