Competition can take your customers away and lessen your business. But when you are competitive, you can grow your business – profitably. And to be competitive, you need to know who and what your competitors are.
If you are a fashion retailer, is your competition the other stores in your shopping centres? They are visible and stand out each time you walk by. Or is your competition the online-only sites, with their free-returns if the clothing does not fit? Or is the competition not another business at all? is it a change in customer clothing consumption? After all, as some now say, why spend $1,200 on a dress that will be only worn once or twice when it can be rented for $40 a time?
Similarly, if you lend money to your members, are your competitors the big four or big five banks? Or are your immediate competitors the mortgage brokers with offices just down the road?
And when people are desperate for a fix, is it the other coffee shops in your shopping strip or centre who are the competitors? Or are the reasons your customers have not bought a coffee from you today related more to their purchase of a supermarket “on-special just this week” $2 full size block of chocolate?
As these examples suggest, identifying where or what your competition is, is not always clear.
To be sure that you are marketing to the competition that is motivating customer and prospective customer behaviour, knowing what customers are doing and what is motivating them helps to strengthen your subsequent strategy.
Analysing your own data can help, but talking and listening to people who are your customers and prospects can markedly help to ensure that you are competing in the same venue as your actual competitors.
We can help you by talking to your customers and prospective customers and confirm who are your actual competitors and what is motivating people to shop or do business with them. And then knowing will enable you to strengthen your business – competitively.
If you would like to know more about strengthening your business against the competitors the customers use, please contact Philip Derham, using this link – https://www.derhamresearch.com.au/contacting-us/ – or call him