Did you know that your competitors can dictate the health of your business?
Whether you have the ambition to dominate your market sector, or you are simply looking to keep growing, my advice is the same:
Keep an eye on your competitors.
Why? Because it’s not consumers that dictate the laws of the market – it’s your competition.
When you decided to go into business, you set your foot into the arena. If it’s going to be there at all, it might as well be in the lead, right?
Having superlative products and services alone won’t be enough. If you want to soar above your competition and get your clients coming to you, you need to keep an eye on your competition as well. Don’t believe me? Here are 5 reasons why competitive intelligence should be high up on your priorities
Knowing what your competitors are up to gives you a head start. Why? Because you won’t just be able to piggy-back off of their successes, you’ll also learn from (and subsequently avoid) their failures. On top of this, being aware of your competition forces you to innovate, adapt and surpass the benchmark you’ve set for yourself.
By monitoring your market, you’ll adapt your products and services to overcome the offerings of your competitors and gain a monopolistic advantage in the market.
Too expensive? Not expensive enough? As a growing business, setting your prices can be a real challenge.
However, if you know how much each customer is willing to pay, this gives you a great starting point. Competitor analysis can help with this. By reviewing your key competitors’’ pricing strategies, you’ll gain insight into where you should set your prices, giving you an accurate picture of your long-term growth.
Probe the market and remember – cheapest doesn’t mean best. One of the core concepts of the Premium Entrepreneurship Methodology course is that increasing your prices can actually attract more business. Once you’re making steady sales, gradually scale your prices.
When I say “identify prospects”, I don't mean of course to steal customers from your competitors.
Of course, during this process you might stumble across clients who aren’t satisfied with the service they’re receiving, but your priority here should be reviewing how your competitors conduct their prospecting in the first place?
Who is their target audience? How similar is that audience to yours? Where and how are they reaching that audience with their brand communications? Optimise and add these processes to your lead generation strategy and drive new business.
Do you know what’s being said about you and your company? Do you control this information or let your competitors talk about you without knowing it and/or without reacting?
As I’ve explained before, in order to stay above your competitors in the digital era, both on and offline reputation are crucial. Although you control this reputation to a certain extent, it can very quickly escape you if your competitors start taking, with sometimes fatal consequences on the future of a business.
My advice: Take your reputation into your own hands now and actively monitor any conversations that are happening online around your brand.
Monitoring your competitors can also bring you new complementary professional relationships, based on win-win and selective cooperation, as explained here:
A systematic knowledge of the market also allows competitors to decide to cooperate in strategic and selected sectors.
Sometimes, two is better than one. It can be tempting to go it alone, but don’t ignore this, as it can be an incredibly effective growth aide.
To conclude on the importance of competitor monitoring, here a few lines from an article I read recently:
As a dominant player in the sector, playing the role of watchdog over competition is part of the company's social responsibility. To fail in this role would not only be a failure for the company itself, but also a failure for its industry, its customers and society.
Do you monitor your competitors? Establish a ranking of your 3 biggest competitors and analyse their strengths, weaknesses, commercial strategy and pricing strategy.
Think about the reasons that are useful for you and set up a methodical and regular monitoring of your main competitors!
Us service providers face our own set of challenges and I want to help. I’ve opened up my calendar for free 30-minute consultation calls 90 min a day, available to any of you who are struggling or facing uncertainty right in their own businesses right now.
This is an opportunity for you to speak openly about your business and receive objective but compassionate advice from a leading business sparring partner.
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