April 2024 Newsletter

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Imagine a customer walks into your business and point-blank asks you, “Why should I spend my money here?” It may seem like a blunt way to begin a transaction, but it’s an important question.

How would you answer? Why should customers prefer your business to the one next door?

Competitive advantages are the distinguishing factors that set you apart from other companies. It’s your secret sauce, something that makes customers remember their experience. A surprising number of people who run companies have trouble identifying what they do better than other businesses. They may think they know their competitive advantages, yet their ideas boil down to generic notions like, “We offer great value,” or “We provide great customer service.”

To market your business, a first step is a look inward, to honestly assess what sets you apart from the rest. Once you understand your strengths, you can push that message out to the market and attract customers who align with what you do best.

Last month’s question asked, “What percentage of your sales come from your top five customers?” Nearly half of respondents indicated that 50% or more of their sales came from top-tier customers. These responses highlight the importance of diversifying customer bases to mitigate the risks associated with over-reliance on a few key customers.

This month, we look at marketing — What describes your competitive advantage?

Which describes your business?

Unsure of competitive advantages

Aware of competitive advantages

Competitive advantages are identified and marketed to obtain additional business

There are a few things to keep in mind as you identify your business’s competitive advantages. These five guidelines should help you narrow things down so that your marketing strategy is built upon a solid foundation.

Prioritize core strengths. When identifying your competitive advantages, think about your core strengths rather than imagining you must excel in every aspect. Concentrate on the distinct attributes of your business, things that truly set you apart from competitors. While highlighting an array of strengths may initially attract attention, what impacts your customers’ experience should boil down to a few key factors. Ensuring these core strengths contribute to an exceptional customer journey will ultimately differentiate your business and drive long-term success.

Quantify your advantages. Establish clear metrics to measure the impact of your competitive advantage. For example, track customer referrals or satisfaction ratings to tangibly demonstrate the value of your unique offerings. Metrics can take a fuzzy idea and solidify it into facts and figures, so you can readily see this competitive advantage — and spell it out clearly for customers in your marketing efforts.

Ensure sustainability. While temporary advantages may provide short-term gains, sustainable success requires a focus on long-term viability. Ensure your competitive advantage is attractive, resilient, and sustainable over time. This means investing in long-term strategies such as pricing adjustments, staff training, and operational improvements. When your competitive advantages are sustainable, your marketing efforts touting these advantages will be evergreen.

Avoid clichés and generic terms. “Low prices,” “quality,” “value,” and “customer service” are all well-worn buzzwords, and it’s easy to assume they should be part of your competitive advantage. Remember though, when everyone is saying the same thing, it loses meaning. By avoiding the buzzwords already so prevalent in the marketing landscape, you will stand out from competitors and better capture the attention of your target audience.

Be honest. Authenticity is the cornerstone of effective marketing. Your brand identity should be built on genuine strengths and values that resonate with your target market. Communicate transparently with your customers, showcasing your unique offerings and how these strengths align with their needs and preferences. Honest communication builds brand trust, driving customer engagement and loyalty, which are essential components of any successful long-term marketing campaign.

“People do not buy goods and services. They buy relations, stories, and magic.”

–Seth Godin, author and marketing strategist

Marketing is how you communicate your value to the vast sea of potential customers outside your doors — and get them to open that door and try your business. The very first step in crafting that message, and your image, is identifying what gives you an edge over others trying to do the same thing. If you build a marketing campaign on wishful thinking over truth, you’re setting yourself up to fail.

Eagle can help you step back and take an honest look at what your business does well, and how that translates into a unique and memorable experience for your clients. Reach out today for a consultation to discuss your goals.

702.451.3250 | EagleCorporateAdvisors.com

8215 S. Eastern Avenue, Suite 275

Las Vegas, Nevada 89123