Making Your Competition Irrelevant

Every business person we know spends a lot of time worrying about the competition and how they stack up. Never fear! If you are concerned about competitors gaining on you, here are a few tricks of the trade that will render your competition irrelevant. Even with so much information bombarding clients and prospects, it is still possible to keep their attention—and even speed up their decision to buy from you rather than your rivals!

1. Create Differentiation. It’s essential that you find ways to make your products and services look distinct – and better – than your competitors’. For example, you can differentiate your products by color, size, accessories or combinations. Or, if you only offer one product or service, consider providing accessories, partners or other options to create variety. The goal is to dazzle clients with enticing options that make them desire what you have to offer.


2. Focus on the Moment of Truth. This is the all-important moment when you offer your products or services to the customer. Whether via e-mail, catalog or brochure, bid or proposal, this is the point at which the customer has the option to make a purchasing decision. It’s the do-or-die time when you need to put your good, better and best foot forward.


3. Good, Better, Best. Always provide your customers with three options. Show them something good, offer something better and hit them with your best. The three offers should be based on a consistent theme that represents your core values. In a service business, for example, you could offer an hourly rate, project fee or retainer. Although each might be based on different pricing structures, all have value. However, be sure to limit the options to three – and avoid introducing too many variables.


4. The Value Proposition. For every option you present, provide a value proposition. Your value proposition needs to be conveyed in three to five bullet points or sentences, and presented from the customer’s point of view. For instance, rather than saying “We are friendly,” you could say “You will receive excellent customer service.” A value proposition typically contains the essential elements of Feature, Advantage, Benefit, Image and Offer. Use these as guidelines while writing your value propositions. Focus on an important feature of your offer, the advantage compared to your competition, and the benefit to your consumer. Remember – if you can’t come up with a value proposition for your products and services, how can you expect prospects to buy them?


5. Plan, Do, Measure, and Adjust. Carefully plan your three offers and the value propositions for each. Then, measure the success of each option and corresponding sales. As a benchmark, “good” offers typically earn 25% of sales. The “better” offer customarily earns 60% of overall sales. The “best” offers earn 15%.

If you do not achieve the desired results in your mix of sales, it may be necessary to adjust your plan or value propositions. But as long as customers continue to make a selection between your options, the competition is irrelevant – and you come out on top!