Gaining a competitive advantage means that your company offers customers more value than the competitors. It can be in the form of better products, lower prices, or superior customer service. To gain a competitive advantage, understand what your customers want and find a way to offer it. Here are six business strategies to gain a competitive advantage:
Track, Collect, and Analyze Data
Data enables you to understand your customers and gain a competitive advantage. Use data to track customer behavior, preferences, and needs. For instance, sales and email tracking make you understand what products or services customers are interested in. Use this information to develop targeted marketing campaigns.
Invest in appropriate tracking and analytical tools to make data-driven decisions. For instance, when you realize most of your email subscribers don’t open the emails you send, it’s time to change your strategy.
Innovate
Innovation differentiates your company from the competition. It helps you create new products and services that customers want. To be innovative, encourage creativity in your workplace. It can be through brainstorming sessions, problem-solving workshops, or design thinking exercises.
You can also encourage creativity by giving employees time to work on passion projects. Encourage them to share their ideas and give them the necessary resources to turn those ideas into reality.
Also, check what the competition is doing and find ways to improve it. Use customer feedback to understand what they don’t like about your competitor’s products or services. The effort gives you insights into areas you can improve on.
Focus on Customer Experience
Customer experience is the way customers interact with your company. It encompasses every touchpoint, from the first time they learn about your company to post-purchase follow-up.
To create a great customer experience, focus on making it easy for customers to do business with you. Have a user-friendly website, provide clear and accurate information, and offer excellent customer service.
Be available whenever customers need you, and make it easy to communicate through live chat, phone support, or social media. Also, follow up with customers after they purchase to ensure they’re satisfied with the product or service. The effort shows them that you care about their experience. You’re more likely to retain them as customers.
Offer Value-Added Services
Value-added services are additional services that provide extra value to customers. They can be in the form of extended warranties, installation services, or customization. Offering value-added services makes you stand out from the competition. It also gives customers a reason to do business with you instead of your competitors.
To decide which value-added services to offer, think about the needs of your target market. For instance, if you sell office furniture, provide installation services. When selling clothes, offer customization.
Build Partnerships with Complementary Businesses
Partnering with complementary businesses lets you expand your reach and tap into new markets. It also offers your customers a more comprehensive range of products and services. When choosing a partner, check if they share the same values as you and are focused on providing a great customer experience. Also, ensure a good fit between your products or services.
Focus on Your Employees
Your employees are your company’s biggest asset. They’re the ones who interact with customers, providing them with a great experience. Invest in your employees and give them the resources they need to do their jobs well. Train, offer development opportunities, and the right tools.
When employees are happy and motivated, it reflects in the quality of their work. You’ll realize improved customer satisfaction and increased sales. If your employee turnover rate is high or clients keep on complaining about your customer service, it’s a sign that you need to focus on your employees.
Tailor These Strategies To Your Unique Business Needs
You’ll gain a competitive advantage in your industry by following these business strategies. Note that each business has unique needs, so tailor these strategies to fit your company. Also, don’t forget to monitor your progress and make necessary adjustments along the way.
Veeramachineni Lalitha
I am Finance Content Writer. I write Personal Finance, banking, investment, and insurance related content for top clients including Kotak Mahindra Bank, Edelweiss, ICICI BANK and IDFC FIRST Bank. My experience details : Linkedin