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Certainly minimal competition in a hot space is enviable, but in the real world such a scenario rarely occurs. Even for category creators who introduce a recent product or service that creates a recent market, it’s only a matter of time before another person comes along and tries to do the same thing higher, cheaper and faster.
Competition in business is a lifestyle and in many ways it helps improve firms and products over time. However, there are many markets that are literally hyper-competitive to the point of saturation, with tons of or even 1000’s of solutions targeting essentially the same customer. These are probably huge markets, but if you are one of the countless solutions attempting to compete, you could answer some basic questions:
- How are you able to stand out in a busy market and for something aside from just price?
- How will you handle marketing when traditional pay-per-click and strategic website listings are ineffective and possibly cost-prohibitive?
- What will your sales strategy be? Even if you have a great solution to achieve your goal customers directly, if that day you are one of 5 people successfully selling the same thing to the same customer, you higher show up with a completely different story and technique to stand a likelihood.
To answer these questions and allow you to compete successfully in an extremely competitive space, I’ll share with you my personal playbook – six key strategic ideas to contemplate and implement:
1. Master the market landscape
Before entering the competitive arena, it is vital to have a comprehensive understanding of the market. Strive to achieve a deep understanding of your goal customer, their evolving needs, and existing products and services in your area of interest. Research and analyze the strengths and weaknesses of distinctive competitors, including their pricing strategies and marketing tactics. This knowledge will guide your approach and enable you to make informed decisions.
2. Create a unique value proposition
Shape your vision, brand and product or service by expressing what makes your offer different and compelling. Are there other things your organization offers that add to this uniqueness when combined with your product or service? Are there features, partners or recent solutions that it’s best to benefit from to further stand out?
Strive to determine and promote a clear unique selling proposition (USP) by viewing your offering through the lens of “We are different because ____.” Perhaps even create a tagline from your USP to briefly convey to customers why you are different (make sure 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 with its strong storytelling and emotional connections, Patagonia with its prioritization of sustainability and ethical business practices, and Bombas with its compelling social mission. These are great case studies to look at and follow because each one has a clear and strong differentiator at the heart of all of your marketing efforts.
3. Explore alternative marketing channels
It’s secure to assume that you simply won’t make much money from conventional paid promoting because the keywords and ad space might be extremely expensive. In many of those markets, the cost of acquiring a customer in this manner might be many times higher than the actual value of that customer over its lifetime. This reality means you could find alternative channels and ways to achieve your goal customer. (*8*) with complementary firms that focus on the same customers, especially those that supply unique offerings in their markets, is an example of spreading information without paying per click or impression. Consider collaborating on events, joint promotions, or content sharing to expand your reach without breaking the bank.
4. Maintain your online status
Customer reviews might be your organization’s strongest asset and are crucial when customers have multiple options in a crowded marketplace. That’s why it’s so vital to fastidiously monitor your online status and take steps to get positive reviews from satisfied customers. Every time there is a “touch point” with a satisfied customer, it is an opportunity to ask for a review, potentially providing an incentive to do so. At every possible touchpoint, make it easy for customers to go away reviews, especially where they’re needed most, by providing direct links to the places you wish them to go.
5. Tell your story effectively
Your website is often the first impression potential customers will make. That’s why it’s so vital to inform your story online in a very strategic way, with an emphasis on what makes you/your organization stand out in your headline. Something about your website stands out higher from tons of of other competitor’s web sites; start by presenting eye-catching visuals and explaining them in easy yet impactful language that shows what makes your solution special or unique. Communicate the same message and branding across your social media channels and external marketing.
6. Get out and network
Building relationships is key. That’s why you should go out and meet people head to head. Maintaining contact with larger clients and key partners, meeting with influencers, acquiring news and cultivating word of mouth is difficult to attain while sitting in an office. Be present and attend key industry conventions and events, not only to showcase your product or service, but also to satisfy with competitors, engage in conversations with other solution vendors in this space, or meet to cultivate future connection; just do it in person.
7. Build a community
Consider starting a community. It’s a lot of labor, greater than you may estimate. However, if your organization manages a large community in the space, it should mechanically confirm your brand and strengthen loyalty. The community also creates automatic exposure, which is very helpful. Engage your audience with helpful content, discussions and events to develop a sense of belonging and encourage them to support your brand.
8. Deliver excellence
Most importantly, never underestimate the power of outstanding customer support. When making a sale, make sure you provide the customer with the very best solution. It is vital to show your customers into network promoters. Relationships, trust, brand and referrals all the time matter, much more so in an overly saturated market. People wish to do business with those they trust and consider in, and with those in whom others consider; this is the essence of outstanding customer support.
In an extremely competitive environment, standing out as a company or brand requires creativity, persistence and a commitment to delivering real value. Use these strategies to successfully navigate the landscape, foster loyalty, and fuel growth in your entrepreneurial enterprise.