Holicent
VIP Contributor
Understanding the nature of competition in your industry can help you to understand how to compete. The first step is to identify the three key factors that determine the competitiveness of an industry:
Quality - the price/quality ratio;
Costs - the cost of producing a product or service; and
Size - the number of firms competing in an industry.
The next step is to consider how these three factors interact with each other. For example, if you have a low cost base, but also have a high quality product or service, then it may be difficult for you to win customers because your competitors have lower prices. Once you have identified your competitors and their strengths and weaknesses, it is important that you understand how they plan to use their resources (internal and external) in order to compete effectively against you.
Other Tips to keep your customers include:
1. Be a great listener: Your customers are there to help you, not to talk about themselves. They're looking for someone who will listen to them and understand their needs. If you don't listen, they will find someone who does.
2. Make it easy for your customers: If the sales process is too complicated or confusing, they'll go elsewhere. Make it simple and easy for them to buy from you, so they won't have any reason to look elsewhere.
3. Be friendly: Don't be afraid to show your personality in your marketing materials or emails (or even just in person). It will help people understand that you're friendly and approachable, which makes them more comfortable buying from you than if they were dealing with an impersonal company or individual.
Quality - the price/quality ratio;
Costs - the cost of producing a product or service; and
Size - the number of firms competing in an industry.
The next step is to consider how these three factors interact with each other. For example, if you have a low cost base, but also have a high quality product or service, then it may be difficult for you to win customers because your competitors have lower prices. Once you have identified your competitors and their strengths and weaknesses, it is important that you understand how they plan to use their resources (internal and external) in order to compete effectively against you.
Other Tips to keep your customers include:
1. Be a great listener: Your customers are there to help you, not to talk about themselves. They're looking for someone who will listen to them and understand their needs. If you don't listen, they will find someone who does.
2. Make it easy for your customers: If the sales process is too complicated or confusing, they'll go elsewhere. Make it simple and easy for them to buy from you, so they won't have any reason to look elsewhere.
3. Be friendly: Don't be afraid to show your personality in your marketing materials or emails (or even just in person). It will help people understand that you're friendly and approachable, which makes them more comfortable buying from you than if they were dealing with an impersonal company or individual.
