Entrepreneur
It’s certainly enviable to have minimal competition in a hot space, but in the real world, this scenario is seldom the case. Even for category creators, those who introduce a new product or service that creates a new market, it’s only a matter of time before someone else comes along and tries to do the same thing better, cheaper and faster.
Competition in business is a way of life and, in many respects, helps make companies and products better over time. But many markets exist that are literally hypercompetitive to the point of being saturated, with hundreds or even thousands of solutions all targeting essentially the same customer. Presumably, these are huge markets, but if you’re one of the myriad of solutions trying to compete, there are some very fundamental questions that you need to explore:
- How will you differentiate in the busy market and on something other than just price?
- How will you handle marketing when traditional pay-per-click and strategic site listings are ineffective and likely cost-prohibitive?
- What will be your sales strategy? Even if you have an excellent solution for reaching target customers directly, if you’re one of five people that day selling effectively the same thing to the same customer, to have a chance, you better show up with a very different story and strategy.
To answer these questions and help you effectively compete in an ultra-competitive space, I will share my own personal playbook with you — six key strategic ideas to consider and implement:
- Master the market landscape
Before entering the competitive arena, it’s crucial to have a comprehensive understanding of the market. Strive to gain a deep understanding of the target customer, their evolving needs and the existing products and services in your niche. Study and analyze the strengths and weaknesses of standout competitors, including their pricing strategies and marketing tactics. This knowledge will guide your approach and empower your informed decisions.
Related: Taking on a Much Bigger Rival in a Hyper-Competitive Segment? Try a Move From This Playbook.
1. Craft a unique value proposition
Shape your vision, brand and product or service by expressing what makes your offering different and compelling. Are there other things your company offers that increase that uniqueness when combined with the product or service? Are there features, partners or new solutions you should leverage to differentiate further?
Strive to establish and tout a clear Unique Selling Proposition (USP) by looking at your offering through the lens of ‘We are different because we____.” Perhaps even create a tagline from your USP to communicate in a short form to customers why you’re different (ensure the tagline resonates and is memorable!).
Many brands have successfully differentiated themselves in highly competitive markets. For example, Apple with its industry-leading design innovation, Nike through strong storytelling and emotional connection, Patagonia prioritizing sustainability and ethical business practices, and Bombas with its compelling social mission. These are excellent case studies to watch and emulate, as each has a clear and strong differentiator at the center of all marketing efforts.
2. Explore alternative marketing channels
It’s safe to assume you will not be able to make much ground with conventional paid advertising, as keywords and ad space will be extremely expensive. In many of these markets, the cost to acquire a customer in this fashion can be multiples higher than the actual lifetime value of that customer. This reality means you need to find alternative channels and ways to reach your target customer. Partnering with complementary companies that target the same customers, especially those with unique offerings in their own markets, is an example of spreading the word without paying by the click or impression. Consider collaborating on events, joint promotions, or content sharing to amplify your reach without breaking the bank.
3. Cultivate your online reputation
Customer reviews can be your company’s strongest asset and are critical when clients have numerous options in a crowded marketplace. That’s why it’s essential to monitor your online reputation carefully and take steps to facilitate positive reviews from happy customers. Any time there is a “touch point” with a happy customer, that’s an opportunity to ask for a review, potentially with an incentive to do so. At every possible touch point, make it easy for customers to leave reviews, especially where you need them most, by providing direct links to where you want them to go.
4. Tell your story effectively
Your website is often the first impression potential customers will get. That’s why it’s vital to tell your story online in a very strategic way, with an emphasis on what makes you/your company different in the headline. Something about your website better stand out from the hundreds of other competitors’ sites; for starters, showcase eye-catching visuals and make it abundantly clear in simple but impactful language that conveys what makes your solution unique or special. Carry the same messaging and branding across your social media channels and outward marketing.
5. Get out and network
Building relationships is crucial. That’s why you want to get out and meet people face-to-face. Staying in touch with larger customers and key partners, meeting influencers, obtaining news coverage and nurturing word-of-mouth communications are hard to do sitting in an office. Be present and participate at key industry conventions and events, not just to showcase your product or service, but to meet your competitors, have conversations with others selling solutions in the space, or meet to cultivate a future contact; just do it in person.
Related: An Entrepreneur’s Guide To Scaling Up the Customer Service Experience
6. Build a community
Consider starting a community. It’s a lot of work, more than you will estimate. Still, if your company manages a large community in the space, it will automatically validate your brand and foster loyalty. A community also creates automatic exposure, which is very valuable. Engage your audience with high-value content, discussions and events to develop a sense of belonging and encourage them to advocate for your brand.
7. Deliver excellence
Most importantly, never underestimate the power of exceptional customer service. When you make a sale, ensure you deliver the best possible solution to your customer. It’s essential that you turn your customers into net promoters. Relationships, trust, brand and referrals always matter, even more so in an overly saturated market. People want to do business with those they trust and believe in and with those others believe in; this is the essence of exceptional customer service.
In a hyper-competitive environment, standing out as a company or brand requires creativity, persistence, and a commitment to delivering real value. Embrace these strategies to navigate the landscape effectively, foster loyalty, and drive growth for your entrepreneurial venture.
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