Every company aspires to conquer a large market share. To achieve this, some companies reduce the price of their goods and services and neglect quality. They want to make a profit by offering the lowest price on the market, which is not beneficial in the end. So, without further ado, let’s dive into this blog and learn about some strategies to outsell your competitors.
Analyze your competitors; it’s the only way to beat them
Self-knowledge is the key to success. This also applies to your business. Before implementing any strategy, it is necessary to evaluate yourself in order to know your strengths in terms of products and services, sales technique, team cohesion, negotiation technique, etc. Also, analyze your Achilles’ heel and how to correct it.
After the internal analysis, study the strategy used by your rivals. Knowing their strengths will allow you to identify your areas for improvement. Studying their weak points will also allow you to prepare an offer to fill them. Your competitors’ target market is the middle class? Reduce your costs and target the lower class.
Try to anticipate their future innovations so that you can come up with an offer that can compete. Since imitation has no place in such a battle, a worthy market leader always stands out with a unique concept. Despite the importance of competitor analysis, don’t waste your time playing Moscow’s eye. Always prioritize your business and be creative.
Innovate; that’s the way to turn ideas into a bill.
Don’t base your marketing strategy solely on the result of the competitive analysis. To outsell your competitors, innovate by helping people get rid of their problems. Use survey techniques that will give you the opportunity to assess the real needs of customers. Thus, you can implement a new strategy based on customer relations and the quality of offers.
If you focus on innovative customer service, you improve the customer experience. You can, for example, establish a new communication method: use social networks, boost content marketing, improve mailing, sculpt a marketing message promising a tangible result, etc. You can also differentiate yourself by offering an after-sales service. This reassures the customer, especially if you are in e-commerce. Innovation actually leads to customer loyalty.
Adaptation is what makes a man
Leadership can never be taken for granted. Your competitors’ ultimate goal is to dethrone you. To stay on top, it is crucial to adapt your business model to the state of the market. Since companies that go green are currently winning the hearts of customers, this criterion must be taken into account. The leader in cosmetics, L’Oréal, has been able to seduce its clients by highlighting their objective of “focusing on environmental and social innovation”.
Revisiting the brand image is also an essential point to winning the price war. Indeed, the branding must underline the product’s particularities and usefulness. You can emphasize the quality of human relations during a transaction, the simplification of the purchase process as at Amazon, the recommendation rating, and the ease of doing business with your company. This will also increase the customer retention rate.
Associating your brand image with low cost is nonsense
You might as well see off the branch you’re sitting on right now because it’s just a matter of time. Sooner or later, a competitor will manage to offer even lower and more aggressive prices, and your little strategy will collapse like a house of cards.
By the way, your suppliers are not fooled; they will continue to exert pressure to enforce their recommended selling prices and will not hesitate for a moment to seize the slightest pretext to patiently eliminate one by one the disruptors of their distribution chain. What competitive advantage will you have left?
Regardless of price, buyers expect impeccable service
Okay… You may well have done your math and can ensure some form of profitability despite your low margins. But at the risk of disappointing you, buyers are not interested in any of that. They’ll still be just as adamant about how you welcome them. And then, to maintain these super low prices, you have to cut back somewhere?
If the quality of your services does not suffer, then your margins will suffer. Take, for example, Amazon (the most customer-obsessed company in the world). In 2013, its sales reached 60 billion euros, allowing it to enter the world’s top 10 retailers for meager profitability of 0.4%.
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