Kyle Bailey is CEO of NuVinAir, a franchise-supported company that utilizes patented technology to create healthy vehicle interiors.
Imagine if a sports team had no serious competition. Games would be really boring to watch, and nobody would grow. It’s the same in business: Competition is what drives us to be better, and what makes the game so much fun. While it’s true that paying too much attention to competition can distract you from your company’s core mission, paying the right amount of attention can help you gain the advantage.
Here are six ways to use what you know about the competition to improve your market position:
1. Learn what makes you different.
Study the way your competitors brand themselves and what they are saying about their products and company values. Consider what makes you different. By doing this, you’ll be able to solidify your company’s unique brand. For example, NuVinAir is about safety and performance, while ensuring our customers receive the best experience. As we’re innovators who have developed this market, all of our messaging, whether it’s online, in print or in person, reinforces those themes.
When you stick to your core beliefs, it’s hard for competitors to replicate your value proposition. And this includes how you treat people. I’m a firm believer that people do business with people. When you build your company based on support and relationships with clients and reinforce your brand promise with every interaction, competitors can’t infiltrate it.
It’s critical to build your brand before you build your marketing strategy. If you don’t know who you are, how can you expect much more from the consumer? Optimize your marketing dollars only once you have a firm grasp of your brand identity.
2. Seize every branding opportunity.
If you’ve built a strong brand, you can differentiate yourself from competitors by increasing exposure in creative ways. Remember that everything the customer sees and touches is a marketing tool. That includes labels, instructions and even the adhesive tape you use on your boxes. At NuVinAir, we make sure every element connects to the values of our product and differentiates us as leaders in quality, performance and safety.
Market your entire product suite broadly. Think about the opportunities you have for every touchpoint with the customer, from informal research through purchase and delivery. Every time a product is in a customer’s hands, how can you show them how broad your product range is? Make every touchpoint count.
3. Don’t compete on price.
If you’re first to market, competitors will often either replicate your product or copy it at a lower price point. But you can’t be a premium product, as well as a cheap copy. Too often there’s a race to the bottom, which is good for nobody.
Cheapening a product makes a company look desperate to compete. And it makes customers wonder what you are sacrificing to get to that price point. Often, competitors will try to grab onto the momentum of new channels when they see how much growth your business has been experiencing. But most of the time, these new ventures don’t succeed because the challenger doesn’t have deep enough experience in a secondary channel.
You can leverage your understanding of these fly-by-night operations to hone your marketing messages about why you’re a reliable partner. When you ensure your products and relationships are of the highest quality, you can continue to grow and strengthen your business for the long term.
4. Monitor social media—but don’t rely on it to do the hard work.
In today’s business world, having a presence on social media that reflects your brand is table stakes. Engagement statistics are also important—especially if you are marketing directly to consumers. It’s critical to monitor your competitors’ social presence, so you can keep track of their fundraising activities, new product announcements, personnel changes and the evolution of their brands. But digital engagement will never replace in-person relationships.
Never hesitate to meet somebody for lunch. In-person visits, phone calls and follow-up emails are what drive relationships, commitment and, ultimately, a company’s growth.
Relationships matter from Day 1. As you grow, remember those early believers but prioritize the leads that will help expand your business. People want to reciprocate with people who treat them well, so leverage the opportunity that comes from referrals.
5. Consider partnerships.
As your company grows, you’ll find there will be opportunities to achieve a bigger benefit for both parties if you work with a competitor, rather than against them. Even if your company holds the intellectual property (IP) for a product or process, and is not at risk, there may be an opportunity to enhance your position by improving your initial approach. Keep an open mind about what competitors can bring to the table.
6. Keep innovating.
If you are constantly innovating, your competition will have trouble keeping up. Learn from your competitors’ flaws, listen to what your customers really need and make every effort to constantly improve. Innovation allows you to continuously better yourself and your company. It injects better performance, uncovers more opportunities and keeps people on their toes.
There’s an old proverb that says you should keep your friends close and your enemies closer. In the business world, it’s important to keep an eye on what your competition is doing, but avoid becoming too distracted by it. If you can establish a strong, unique and consistent brand, maintain deep relationships with customers and stay the course with your core mission when the winds of change blow, you can hold your market-leading position, even in a sea of competition.
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