How Competition is Good For Your Business
Last week, we shared some tips on how to “be the customer” at your competitor’s businesses to get more sales for yourself. This week, we’re going to dive deeper into how competition is good for your business (no, really).
Push for Innovation
A little healthy competition can do wonders to push you out of your creative rut. Things you’ve been putting off because you don’t really “need” to do them suddenly become a way for you to stand apart from your competition. New menu items, exclusive products or services, a new e-commerce section of your website… all of these amenities might come to life when a competitor opens his doors down the street.
Customer Service Boost
Let’s say you run a coffee shop, and there are 3 other coffee shops within a 5 mile radius of your business.Let’s assume that every shop is pretty much the same, give or take a few menu items or types of coffee offered. How can you make your coffee shop the preferred coffee shop? By boosting the level of service you offer your customers! If they can get their cup of joe anywhere, wouldn’t they rather get it at the friendliest coffee shop in town? We think so.
Greater Understanding of Your Customer
In the same way that conducting a store tour of your competition will provide a few “a-ha!” moments, so will seeing which of your customers frequent the competition (or don’t) and why. You’ll be forced (in a good way) to focus your marketing and advertising efforts on your core market – and it will likely be narrower than before. That’s a good thing!
What lessons have you learned about your business due to your competition?