In order to make a profit in a competitive retailing industry, businesses must find the competitive edge that differentiates them from other competitors.
Competitive edge includes the factors of a particular business that has more advantages than its competitors. In other words, it is the selling points that make a business better than the others. The competitive edges may include the quality of the products, branding, distribution network, customer service, and intellectual property, etc.
Are you planning to develop your business? This article will provide some of the most effective ways to gain a competitive edge over your competitors:
Develop a smart pricing plan
First and foremost, you have to make a smart pricing plan for your products. Customers often look for the best choices possible within their budget, so make sure to consider different price ranges. If a business can offer quality products at a lower price than its competitors, it will be able to make more profits in the long run.
Using this strategy, the company needs to find ways to sell quality products at the lowest price rate possible. However, remember to ensure the quality; customers may leave if the items they want do not meet up to their expectations despite a cheap price.
Make use of online influencers: Be one or hire one
In order to develop a competitive edge, you may want to partner with online influencers who have the same target audience as you do. Having a unique influencer as your brand ambassador, for example, can help to highlight your brand over your competitors. You should consider the reputation of that influencer and how he/she builds an image with the public too.
If your company is tight on budget, it can be wise to build the company as an influencer itself. Ask yourself this question: What social values can you bring to society? What can you do to improve CSR communication? Or what educational or entertaining aspects can be incorporated in your company communication to attract customers? In the end, these values should resonate with the products/service you sell. Inauthenticity in branding can be counter-productive.
Create your own data
Every company has its own customer segments, and they are all different. From the purchasing activities and data storage, you probably have gained a certain amount of customer data.
To gain a competitive edge, proper data with accurate information is very important and insightful. Understanding your own customers can help to distinguish your company from others, so that you can develop an appropriate marketing strategy. You may want to consider making a data sheet for this.
Integrate new technology
You should integrate new technology to increase the competitive edge. Installing new technology, such as an effective POS system can reduce operational and manufacturing errors. This helps to grow your business smoothly and increase your customer base.
Provide better customer service
To get a competitive edge, you have to provide superior quality goods with the best service. The shopping experience is one of the most important factors that affect customer satisfaction. Make sure to provide special care for loyal customers, and attracting new ones in the most welcoming way.
Niche down your products
Having a product range that is too wide can make your company lose the unique selling focus. To maintain a competitive edge, you should niche down your product and be excellent at that particular field. You can increase order quantity or invest more in marketing so that customers can be informed about the specialty that you offer.