The Competition Problem
Competition is a commonly discussed topic in the world of business. There are multiple different ways competition can take away from your marketing strategy. Still, there are three main issues:
- Higher Costs
- Typically when going head-to-head with a competitor, costs are higher in terms of time and money. Examples include attempting to outrank a competitor in a search engine, bidding in advertising, or even reinvesting in a new marketing strategy to remain relevant.
- Lower Visibility
- Many customers do not take the time to look thoroughly at two similar products. More often than not, a customer will look at one product and use its information to make their buying decision.
- User Confusion
- Consumers may feel confused if they are exposed to your product and a competitor’s product at the same time. They will remember only one product or associate one brand name with the competing product.
Get to Know Your Competitors
Once you can understand your competitors, you’ll be able to handle them better. By analyzing their strengths and weaknesses, you can adjust and plan marketing strategies accordingly.
Making your business different from your competition and pursuing different strategies is guaranteed to set yourself apart. Some of the most common strategies to differentiate yourself include:
- Geographic Location
- Buyer Intent
- Brand, Image, and Voice
- Quality and Support
Outspend Where Appropriate
Several digital marketing strategies are relatively inexpensive. However, there are instances where outspending your competition is the best strategy.
Use the Competition to Your Advantage
Although competitors present competition, there are ways to use them to your advantage.
- Content Collaborations
- Branded Keyword Optimization
Focus on Retention
Customer retention is far less expensive and more effective than spending time and energy on customer acquisition. Maximizing the value of each new customer you bring in is essential. Some ways to do this include:
- Offering support
- Strengthen client relationships
- Customer loyalty incentives