Ahead of the Pack: 8 Ways to Keep Your Business Competitive

How to keep your business competitive

Here are eight ways to differentiate your product and keep your business competitive so you can exceed client expectations.

1. Attract new clients.

When you’re an entrepreneur, it’s easy to get sucked into working diligently with your nose to the grindstone, forgetting to come up for air. Working hard and being an entrepreneur are so closely intertwined that you probably wonder from time to time if you aren’t better off working a corporate job.

The difference in running your own business is that you’re the one powering the economic motor. You’re the driver behind the wheel and your decisions are the ones that your company lives or dies by.

But there’s an age-old problem for small businesses. You have too much work and so many orders that you’re up all night and working around the clock to meet their needs. In fact, you need to take on more people to help your company grow. So why should you even think about attracting new clients?

Simple. If you get too close to your projects and you’re constantly marketing to and working with the same client base, you fail to plan for the long term. If you don’t want to become the next Eastman Kodak or Blockbuster,  you need to focus continually on attracting new clients. If you’re not thinking ahead, you can also wake up one day and find that your products or services are being sold to an aging market while the new generation is buying elsewhere. [Read related: Returning Customers Spend 67 Percent More Than New Customers]

Start by thinking about simple ways to bring accessibility and convenience to your customers. For example, prevent your customers from becoming turned off or overwhelmed with the payment processing. Make the process quick and easy so they feel excited and reassured about their purchase, and don’t have time to regret their decision.

Allowing your payment programs to prefill returning clients’ information, like their address, when they type in their ZIP code is a great option to offer customers. Nothing beats quick and easy for customers in the modern world of curbside pickup and lightning-fast delivery orders. The sooner they’re able to purchase, the sooner they’re able to receive. This produces happier customers who will share their positive experiences online and in person, with friends and strangers alike. 

2. Give your existing customers a reason to come back.

Gaining and retaining repeat customers is crucial to staying competitive and ensuring long-term success. While it’s important to draw new customers in, incentivizing repeat business helps to maximize the value of your existing customer base and develop brand loyalty. Plus, it can help alleviate marketing costs by reducing spending on customer acquisition.

Benefits such as a loyalty program can help encourage repeat business. Rewarding customers for their continued business can lead them to become brand advocates who share their positive experiences with others. And that word of mouth helps to grow your business through referrals. Even more, they’ll be more likely to buy from your business over your competitors, leading to increased revenue. It also allows your business to try new tactics with a willing consumer base, such as launching new, experimental products related to your core offerings to encourage more purchases.

Be sure to provide top-tier customer service, too, as this is instrumental in developing a loyal customer base. Consumers want to know that you value their business, and providing exceptional service is integral to demonstrating that.

3. Predict the future.

You don’t need a crystal ball to predict (or at least try to anticipate) the future, but it requires thinking outside the box. Having a long-term vision is hardly the biggest secret on the block. As far back as 1903, when Henry Ford launched the Ford Motor Co., this pioneering entrepreneur took advantage of his business foresight by already thinking years ahead of everyone else. “If I had asked people what they wanted, they would have said faster horses,” he once said. 

A long-term vision for your business is vital. Most of the time, you’ll need to innovate and figure out what trends in the market may come before they appear. According to Steve Jobs, “a lot of times, people don’t know what they want until you show it to them.”

If you can keep yourself informed, updated and ahead of the curve, your business will be better positioned to compete globally.

4. Respond to changing markets.

The market can be unpredictable and constantly evolves over time, so pay attention to what your customers are buying and actively saying they need, despite whatever your company is currently delivering. 

When in doubt, get feedback from your customers first, and listen to what they say about problems they’re facing or solutions they wish were available. Knowing your customers will give your company the best advantage and breed confidence against the competition. You never know when you might need that. Be open to criticism and treat your customers like your first priority. It’ll pay off with your return on investment. 

5. Take advantage of AI.

Artificial intelligence (AI) has dominated the business landscape for a while now, but many businesses are still hesitant to adopt it. However, utilizing AI in your small business can offer many competitive advantages, including increased productivity, opportunities to scale and more.

Leveraging AI enables businesses to finetune their everyday operations to create more efficient workflows, reducing redundant tasks and freeing up employee time to focus on the bigger picture. Various AI tools are available across all industries and business tasks, from generative tools like ChatGPT to analytics software that provides insights into consumer behavior and identifies cybersecurity risks. These tools help businesses streamline their operations and simplify how they handle vast amounts of data, providing a deeper understanding of their market and customers. This helps businesses to make informed, data-driven decisions.

If you choose to adopt AI in your business, ensure you train your employees on best practices and clearly outline how they are to leverage the tool. Misuse of AI in your business could lead to inefficiencies, security breaches or even legal issues.

6. Price your offerings competitively.

To stay competitive in the market, businesses must find ways to provide value to customers without sacrificing profitability; finding this balance requires choosing the right pricing model.

Determining the best pricing model for your business will depend on various factors, including your products/services, cost of goods, target market and industry. For instance, if you operate an e-commerce retail business specializing in skincare products, adopting a subscription could be more appealing to your target audience than a one-time-purchase model. This approach allows your customer base to test and explore new products, improving their experience and exposing them to more relevant offerings. 

After identifying a pricing model that aligns with your customers’ needs, the next step is to test its effectiveness. Engage your customer base by gathering their feedback on different pricing strategies you’ve implemented, making adjustments based on their responses. This feedback will offer insights into what customers do and don’t like, and it’ll demonstrate that you value consumers’ opinions. 

When setting a baseline price, consider the production costs and the profit margin you aim to achieve. This will help to establish a price that is in line with your business’s financial goals while staying competitive.

7. Invest in professional development.

When companies invest in their employees’ professional development, they’re also helping their own futures. By offering education and training opportunities, you’re enabling your staff to advance their skill sets and setting them up for success. This prepares them for more complex roles within your company while also making your organization attractive to top-tier candidates when hiring for new roles. 

Professional development opportunities are also great motivators for employees, signaling to your staff that your company is committed to their growth and career advancement. This helps employees feel supported and valued by their employers, leading to increased employee retention and improved productivity. This, in turn, reduces turnover and associated staffing costs that come with recruiting and training new workers.

To offer the right professional development opportunities, ask employees for their input and see where their interests lie. Consider trends in your industry and look for valuable opportunities where you could help expand your employees’ professional networks. For those who could benefit, offer continuing education or certification programs. This empowers employees in their current roles while giving them a sense of upward movement within your company.

8. Be open to new opportunities.

You might have started your company for a single purpose, to fill a gap in the market for comfortable mattresses, high-powered handheld entertainment devices or children’s toys. But that doesn’t mean that your business shouldn’t or can’t evolve to offer other products and services as well.

The most successful businesses continually develop to meet changing market demands and are, therefore, open to new opportunities. It isn’t always easy to keep your business competitive in a cutthroat world. But, if you focus on opening up new markets, adapting your product or service to meet changing tastes, and being aware of new opportunities, you’re less likely to be blindsided by sudden paradigm shifts or overnight crashes. You’ll also be more likely to run a successful business that thrives for generations. [Learn how to build a positive sales culture.] 

Even if your company is only known for one thing, don’t be afraid to branch out and create a niche market to benefit your business. It’s a perfect opportunity to promote change and distinguish your brand from competitors. Take criticism from your customers, accept full accountability and target those problems with your new niche as a solution. 

How to monitor your competition 

Getting ahead of the competition requires understanding their tactics and strategies for success. Here’s how to monitor others in your market to ensure your business is staying competitive. 

1. Use automation tools.

If you want to keep up with trends or even just learn from your competitors’ mistakes, automatic social media monitoring tools will save you time and money. Plug in the correct keywords to track, and the system will find where brands are mentioned on company sites, blog pieces, social media accounts and other web pages in a matter of seconds. 

2. Track and analyze competitors’ content.

One of the best ways to monitor the performance of your competitors is to pay close attention to their content and how it ranks on search engines. This determines how visible their website is on search results pages of relevant search engines like Google or Yahoo. Pay attention to your competitors’ SEO to see how they generate web traffic and what strategies will help you attain better results, like using the same keywords for content and social media posts. 

3. Regularly scope out competitor websites.

Check out your competitors’ websites to inform yourself of the latest events or products they’re offering and how efficient or user-friendly their site is for customers. By studying their site, you can determine how your own compares in terms of copy, product descriptions, blog posts, pictures, contact info, usability, payment processes and more.

4. Evaluate your competitors’ prices.

Your competitors’ prices will determine whether or not your company charges too much or too little. If your prices are more expensive, customers may be turned off, but if they are too cheap, customers may assume your products or services are of low quality. Try to find a medium measure in pricing to attract customers. Checking your competitors’ prices can help you gauge the appropriate pricing methods.