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5 tips to finding your competitive advantage – Part 1

30 November 2023 Myra Knoesen

Finding your competitive advantage is key to your small business’s success.

Digital marketing statistics tell us that 70-80% of people will research a small business online before contacting or making a purchase from them. When prospects search for your business, what’s going to make it stand out?

The answer to that is finding your competitive advantage.

What is a competitive advantage?

Your competitive advantage is the thing that makes your brand stand out. It’s the defining characteristic that will make your customers choose your product or service above all others. Finding your competitive advantage will help guide your sales and marketing strategies for years to come.

Why is finding your competitive advantage so important?

Without a competitive advantage, it’s hard for prospects to separate you from your competitors. Some small business owners prefer to let their customers help them figure it out over time. This isn’t necessarily a bad idea, but it can take a long time, if ever. Every day that goes by without knowing your competitive advantage means opportunities could be going to your competition.

Above all, forget being a jack of all trades and embrace your niche.

The most common types of competitive advantage

Regardless of what industry you’re in, every business has the option to stand out from the crowd. Here are three of the most common ways:

  • Stellar customer service. This seems harder to come by these days. This is why high-quality customer care is a priority for businesses like Apple, Amazon, and Walmart. Take a page from the books of these successful companies and make customer service your calling card.
  • Hard to beat prices.For most folks, price is a major deciding factor in their buying process. Even if you can’t afford to lower your rates, consider offering high-value add-ons or complimentary upgrades. Customers will still feel like they’re getting something for free while you maintain your profit margins.
  • Unique offers. There may be lots of companies out there who do what you do on a basic level. But you’ve got a little something special. For example, if you’re a home services company, perhaps you offer 24/7 on-call staff. Or a free deep cleaning for every new customer referred to your business. As long as none (or very few) of your competitors offer it, these unique offers can really help your business stand out.

Read more on how to find your competitive advantage in part two.

 

Author

Maria Waida

 

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