Leveraging Your Competitive Advantage
What separates your business from your competitors?You might provide an elite customer experience, offer an advantageous loyalty program, or have low prices that can’t be beat. When creating a business plan, your competitive advantage should be top of mind. How are you going to get customers to gravitate towards your brand as opposed to other options? Leveraging your competitive advantage can help your business outperform competitors, increase sales and profit margins, and guide marketing strategies throughout the life of your business.
What is a Competitive Advantage?A competitive advantage is the supremacy your business has over other businesses that offer similar products or services. It’s the differentiating factor between your company and your competitors – it’s the attribute that sets your brand apart from the status quo. Your competitive advantage can help your business attract a larger customer base and improve profit margins.
Examples of Competitive AdvantageCompetitive advantage comes in all shapes and sizes. It could be the price you sell your goods at, the reputation of your business, the customer experience you provide, and so much more. Once you understand competitive advantage, you can create business strategies for how you’re going to increase your competitive advantage. Here are three examples of competitive advantage to consider leveraging for your business.
A good customer experience seems like it’s getting harder and harder to come by. It’s not that bad customer experiences have become the norm, but the great customer experiences have become the standard, so the expectations of consumers are higher than ever before. A good starting point is to make sure you have a knowledgeable and pleasant staff, a sleek loyalty program, and the right digital tools to streamline a client experience.
SustainabilityAs a small business owner, you will probably never be able to compete with the low prices big name brands, like Walmart, can offer their customers. However, you can leverage sustainability initiatives to attract your niche audience. Customers like to feel good about their purchases, so you may find they’re willing to pay a little extra for a good cause. If you can tie a sustainability initiative or a feel-good mission to your offerings, you might discover great opportunity for your small business to thrive.
Company CultureYou know what they say: ‘happy employees make happy customers’ – and it’s true. If you can create a positive company culture where your team members feel valued for their contributions to your business, that will likely roll over into their interactions with customers. If your own employees don’t advocate on behalf of your brand, no one will. Additionally, an appealing company culture can help your business attract and retain good help – something many businesses are struggling with.
How Can I Find My Competitive Advantage?Finding your competitive advantage doesn’t have to be hard – think about what sets your brand apart from the rest. If you’re a visual person, using our competitive advantage one pager is a great place to start. Utilizing this tool can help you conduct an analysis of the competition in your market. Let us help you find your business’ differentiating assets, so you can start leveraging them immediately.
Download the Competitive Advantage One Page Plan PDF
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