We recently shared why it’s important to know who your competitors are for your business. After you find out about your competition, what other things do you need to know about them?
Here are three questions you should ask yourself when you’re learning about your competitors.
- What are Your Competitors’ Prices?
It’s important to know how your competitors price their products or services.
This isn’t just about matching or beating their prices. The goal here is to know where your prices stand, compared to your competitors.
If your prices are lower than at least some of your competitors, this could work to your advantage. But you will need to persuade potential customers that your product or service’s value is as good as those that are more expensive.
Or, if your prices are higher than at least some of your competitors, you will need to show the additional value you give your customers at this price.
The bottom line here is that you will need to give your customers a convincing reason to pay more for your product or service.
- What Are Your Competitors Strengths?
Why do customers like your competitors? Is it the product or service itself? Do customers like how they are treated?
You could offer the same product and/or type of customer service, something similar, or something that’s even better. Making these additions could persuade some of these customers to buy your products and services.
On the other hand, there may be some things your competitors give that you won’t be able to match or beat. And that’s okay. You can’t be all things to all people.
When this happens, just focus your time and your energy on the things that make your business great and work on continuing to grow in those areas.
- What Are Your Competitors’ Weaknesses?
Many entrepreneurs talk about how it’s important to know your business’ weaknesses. But, did you know that learning your competitors’ weaknesses can show your business’ hidden strengths?
Sometimes, your competitors’ weaknesses will show you an important area that you hadn’t thought of. You can then use your “new” strength to improve your business.
There are also times when your competitors have weaknesses that are strengths you already know you have. This can help you find out which strengths to use in your social media promotions or for other marketing.
And then there are times when your competitors’ weaknesses show a common problem (or problems) in your type of business, industry or community. There are still opportunities to learn here.
Find out how your competitors deal with these problems, and you’ll learn how to handle these same issues. You might even discover how to handle these problems better than your competitors.
The information you learn about your competitors and your industry will help your find better ways to promote your business and truly stand out as a unique, great business to your current and potential customers.