Your Customers ALWAYS Have A Choice

Your Customers ALWAYS Have A Choice

Only fools believe their business has no competition.

There are multiple ways to think about who your competition is, however, I’m going to define it in the simplest terms for businesses and that is customer money.

If I have a need and you could supply that need for a price, but I choose to satisfy that need by spending my money with someone else, that someone else is your competition.

This weeks Sound ADvice newsletter talks about competition and  I’ll share that with you in a second but first I want to broaden your idea of competition.

Today, I ate breakfast.

I had the choice of eating something I already spent money on and was in my kitchen…

Or I could leave my house and spend money somewhere else.

Often, business owners only look at their direct competition.  Today I spent a couple of bucks for a breakfast burrito and a diet Mt. Dew. Yesterday I spent 6 times that for a breakfast sandwich and white mocha from my favorite coffee shop. Tomorrow, I’ll have a bowl of cereal.

See, sometimes the competition isn’t direct, but an alternative, however they all are ways that involve my money and my desire for breakfast.

Now let’s look at the SoundADvice I’m sending out in my weekly newsletter this week. (and if you want a free copy emailed to you every week, just let me know).

Have you ever heard someone say, “We don’t worry about our competitors, we just focus on what we do”?

Sure you have! It sounds nice, but the truth is that most successful business owners have a very keen eye on their competitors and know as much about them as possible. If not, there is no way to know which cards you can or should play or when to play them.

More than likely you know “who” your competitors are, but “how much” do you know about them? It’s not so much about knowing them so you can be like them, but, the more you know them, the more you can make sure you differentiate your business from theirs.

Motivational and self-help speaker Jim Rohn was known for his witty one-liners. One of his best was directed at people and businesses and it encouraged them to be different.

“Walk away from the 97%. Don’t talk like they talk,
don’t act like they act,
don’t go where they go, don’t do what they do,
don’t specialize in what they specialize in”.

In other words, Jim is saying, be yourself, make your own mark. Make sure you and your business are clearly different than your competitors.

Why is it so important to know your competitors?

In any given market, large, medium, or small, there is only so much business. Capturing your fair share and growing your share is the path to success. Only when you know what their strengths and weaknesses are can we know how you can best position your business to compete with them and grow your share of the market.

When we are armed with this knowledge, we can communicate our true value to consumers, adapt our brand and communications strategy accordingly, and win market share.

“If you know thy enemy and know thyself,
you need not fear the result of a thousand battles”.
– Sun Tzu

Identifying what differentiates your brand, product, or service from other players in the industry is only one of the benefits of analyzing your competitors. It’s crucial to increasing sales with your current customers, building customer loyalty, and attracting new customers. It will also help you identify the following:

  • Understanding industry standards so that you can meet and exceed them.
  • Discovering untapped niche markets.
  • Fulfilling customers’ desires and solving their problems better than competitors.
  • Distinguishing your brand.
  • Standing out in your marketing.

In today’s multifaceted world, competitions come in many forms. Direct competitors are easy to identify. Indirect competitors are sometimes harder to uncover and can come from anywhere. Grocery stores had no idea they would be competing against Amazon. Tire stores and hearing centers didn’t imagine they would be competing with Costco and Sam’s.

While the process of evaluating and knowing your competition can be taxing, the benefits of knowing can open an array of opportunities for your business.

If you would like to see nine ways to help you understand your competition, click here.

You versus Them: Real Life Examples in Marketing

There is always a You versus Them.

Yesterday I shared a couple examples of consumers deciding where to spend their money.

Today,  a couple of examples from my advertising world.

First off there is a small skilled nursing facility in a town outside of Fort Wayne that contacted us at WOWO radio asking for help and information.

WOWOLogo

I visited them last month and followed up a few days later.

They are hurting and undergoing some changes in the way they handle their advertising.  Instead of it being handled by their higher ups, they are now responsible for taking care of it locally.

Every quarter they have $2000 in marketing money to spend.  Some might think that is a lot, but it really is a fraction of what they need.  Especially when they are trying to spread it among multiple marketing events. But setting aside the limited financial resources they have, they have other issues.

As I drove to their facility, I passed 3 other similar places in less than a mile from their front door.  Talk about competition!  Even if we help them get appointments, they need to fight off those competitors that are a block away!

As I spoke with the administrator, I was struggling to come up with a reason that they are different and better than their neighbors.

I said they are hurting.  They have 55 beds but only 30 were filled.  They need that number to increase to at least 40, fast.

I ended up giving them two options using our radio stations that have a chance of being successful.  They are not my very best options simply because they are limited with what they can spend.  But the bigger issue is going to be what they do with the leads I send their way.  That is going to be the hard part. Their marketing challenges are due to their competition in their own backyard and how they compare in their face to face visits with those we send them.

The 2nd example also contacted us at WOWO Radio.  WOWO is the most listened to radio station in our city and has a news/talk format with some sports.  90 years old on 1190am and also broadcasting on 92.3 FM, plus online, WOWO has been a name brand for generations.  One of the business categories we attract is financial planner types.  We have 4 different financial planners that have been on WOWO for years.  And there is one or two more that are also on WOWO regularly.

Right before Christmas, we were contacted by another firm that wants to find out how to tap into our audience and offer financial services.  After doing my own internal research, I have come up with a dollar figure they need to spend to be a player in this competitive field. It is not unreasonable, but it is important that they say yes to one of the options I offer. Otherwise they will be overwhelmed by the other four financial planners we have on the air.

Here’s the competitive situation for them: It’s not the hundred agents and planners in our city they need to compete with, it’s just the ones who already have a head start at building name recognition and trust with our audience.  Given the lay of the land on WOWO, they will need to go big, or go home.  I know it will work, if they follow my leading.

Lesson for today is you need to know who and where you are competing with in the physical reality like the nursing facility and also in the marketing/advertising reality like the financial planner.   Are you looking at both?

Contact me with your thoughts, comments and questions.

You versus Them: Know Your Competition

Today I’m kicking off a marketing series to get you to think beyond yourself and become a bigger thinker.  Last week I challenged you to get a better understanding of who you and your business are from four different perspectives.

Unfortunately, most of us look at our business only from an insiders perspective, because, well, that is us.  It is who we are. And we are busy taking care of our stuff we have little time or desire to explore the other perspectives.

What I purpose you do is to flip around your viewpoint.

Instead of thinking about all the great and wonderful things you do, think about how you stack up in your customers mindset.

You do not operate in a vacuum.

Your customers do not have to buy from you.

I’ll give you a couple of examples.

In Fort Wayne, Indiana, we have one Honda Dealer.  Just one that is allowed to sell brand new Honda cars.

So if my son in law, who has always owned at least one Honda all the years I have known him, is going to buy a new Honda, he’s going to shop at Don Ayres Honda in Fort Wayne, right?

Wrong. I doubt that Brandon has bought any of his Honda’s from Don Ayres.  He will travel two hours to Indianapolis to a Honda dealer who offers him a better price than he can get from Don Ayres in Fort Wayne.

The folks at Don Ayres Honda probably don’t realize that they are losing his business. Brandon buys a vehicle about every 18 months.  Don Ayres thinks they are the only Honda dealer people in Fort Wayne will buy from, because, well, they are the only Honda Dealer.

I’m sure they could do something that could earn Brandon’s business, but they are not and unless they read this, they are unaware of the business lost.  Because I am sure there are others locally who will drive to save if the offer is right.

jeff-sheldon-photo-8

The other example I want to share today involves my friend Ron.  He eats every day. As a single guy, he eats out once or twice daily.  He often eats with others at lunch or dinnertime. But he also eats at home every once in awhile.

Every day Ron decides where to spend his food money.  Business lunch, dinner with friends, or just a bite at home, these are his preliminary choices 3 times a day. Over 1000 meals he will eat this year and every time he decides where he will eat.

If you are a fast food joint, you may be on his short list. McDonald’s, Wendy’s, Arby’s, Burger King, Subway, all are possibilities. A few local places like Hall’s, Chrome Plated Diner and Calhoun Street Soup, Salad and Spirits are also under consideration when Ron wants to eat.

Applebees, Smokey Bones, Ruby Tuesday, and a couple of Chinese joints have all earned Rons lunch money during the past year.

But these are not the only competitors. Kroger, Scotts, Walmart and Meijer, they are also getting a share of the money Ron spends each month for food.

With all of these options, does any one of them stand out as favorites? Sure.  I know which ones because I grab lunch with him about once a week.  But the point here is just because you sell burgers, don’t think your only competition is the other burger places.  You need to know all of the places your customers could  (and are) spending money they could be spending with you.

As you look at the big picture, you will begin to see yourself as your customer sees you and you have the opportunity to better position yourself.

More tomorrow.