|
The competitive edge is what helps a customer select from the vast array of options available. Literally, if a customer has selected you from the long list of competitors they have a reason why. This is the start to a competitive edge. For some, the fact that they have customers means that they have distinguished themselves from others in the marketplace. They just may not know why.
The bottom line is that every company who has customers has some edge, even if the differences in the marketplace seem small. For John, and any other company, the important realization is that he has an edge, he just needs to increase its strength. By doing so, the company literally answers the question, “why should I buy from you instead of from other options.”
So...how does a company increase their edge?
First, start by writing down your edge as it is today. John has already stated he has trouble with doing this today. A great suggestion is to start with why your existing customers have already selected you in a crowded marketplace. (Ask and they will tell you!) Likely, what you will find is that you does some things differently than other firms in your industry. They may even feel minor or trivial to you, but your customers did choose you for a reason. Knowing that reason is very powerful.
With an edge committed to paper, we have the opportunity to look at its strengths and weaknesses and look at ways to improve it. For instance, consider how meaningful your current edge is to customers. You may be located in a building that also hosts a complementary product or service. If this is the edge or advantage you is going to build his business around, knowing if this is important to your customers would be very important. Having a specialty may mean the world to some customers and be meaningless to others. Again, the edge is stronger if is very important to customers.
Here are a couple of other questions to consider when evaluating and building the strength of an edge:
o Can you measure and quantify the advantage you have over others? If you can say you are 38% better than the competition, this is more meaningful than just saying “its better.”
o Can you be very consistent in delivering the advantage? Today and tomorrow? In many ways a competitive edge becomes the foundation of a company’s marketing strategy. If the “leg you are going to stand on” is constantly changing, then it not as strong as an edge that will stand the test of time. A long-standing edge is something you can build upon.
o Do your customers easily understand the competitive edge or does it require a lot of explanation? Customers are busy and will rarely spend any time (like even fractions of a second) to figure out what you are saying. If it’s not completely logical and not something that people quickly comprehend, they will move on quickly. If your edge is complex, you can build its strength by breaking it down into simpler, base concepts.
o How easy is it for competitors to replicate your edge? For instance being the cheapest can be a competitive edge if others cannot match your price. If your edge is price and someone else goes lower, then your edge is not as strong!
o Does the edge motivate the customer to action? A strong edge will get underneath the customers’ skin in such a way that makes them have a need to do something with you. It will inspire an urgency, excitement, and high level of interest.
If you have customers, you have a competitive edge. Part of putting a business in a strong position to grow is to clearly know why customers should buy from you instead of from others in the marketplace. Invest in strengthening your advantage over the competition, then make sure the market understands why they should work with you. Beating the competition should not probably be the driver of winning in your market, but being able to help customers sort through their options (and choose you!) is an important step.
Curt Clinkinbeard is a marketing consultant with the Kansas Small Business Development Center network and is the author of HYPERGROW YOUR BUSINESS and CUSTOMER PILLARS. He can be reached at curt@strivecoaching.com.
|
