7 Steps to Attracting Customers Away From Your Competitors
Be strategic to encourage competitors’ customers to switch to your brand
One of the most lucrative ways to improve your business is to attract your competitor’s customers to your business. Consumers will switch brands and businesses if they can see real value, so you need to give them a pretty good reason to choose your business over your competitors.
Thorough competitor analysis is the strategic way of developing a clearer picture of what’s happening in the market and giving you a basis to develop your own action plan. Follow these steps to make your business irresistible to your competitor’s customers:
1. Lower your prices
Simply being the cheapest supplier can be an effective way to attract new customers, but what your business sells will have a major impact on how effective this technique will be. If your business sells commodity items such as books, CDs, DVDs etc., which are identical no matter which retailer sells them, consumers will look for the cheapest price.
Value however, is often related to price. An item that has a very low price can frequently be perceived as inferior. Look closely at the pricing structure of your competitors before slashing your own prices, as this could damage the brand value of your company.
And value for money doesn’t simply mean more for your money, as the equation consumers use to decide what price they want to pay for any goods is complex. Attracting customers away from competitors may have a price component, but this isn’t the only factor consumers will use for goods that are not seen as commodities.
2. Create brand loyalty
Inviting customers to become part of your brand can be a powerful attractor. Companies such as Apple illustrate how successful strong brand values can be. Consumers want to be part of a group or tribe that not only delivers great goods or services but, also shows the people in their network they support the values of the brand they associate themselves with.
Trust and interest in a business’ customers and what they do are strong ways your business’ brand can become highly attractive to your competitor’s customers. The emotional ties your business can make via social media for instance can be highly effective. In addition, it has been shown that consumers who are emotionally connected to a brand are less price sensitive, which is why Apple can charge so much more for its products.