Be aware of your competitors, but focus on your customers.

Why competing hurts your ability to meet your customer's needs. 

Picture yourself at an airport with very little time between connecting flights looking for someplace to grab lunch before your next flight. You’re likely going to pick a place that 1) has good food and 2) quick service. 

I remember when I found myself in this situation. I was flying to the midwest from Florida and had a connection in Atlanta. I was with my wife, who was pregnant with our daughter at the time. She was craving Popeyes, but I wanted Chick-fil-a. I studied the terminal and found a Popeyes. However, when I get there, I see a MASSIVE line, but my wife is pregnant, and this is what she wants, so I get in line.

After a few minutes of no movement, someone taps me on the shoulder and says, “Have you already placed your order? and I reply, “no, I’m waiting to place it.” They tell me, “You have to cut the line and place your order at that obscure counter inside, you’re standing in the pickup line.” So, uncomfortably I cut the line and walk to the obscure counter to place my order and then go back to the unmarked pickup line. 

Within moments I see someone walk into the restaurant unaware that they’re standing in the pickup line. It was my turn to pay it forward and tell them what I learned from experience. I continue to wait for 10 minutes, and finally, an employee started yelling order numbers at random for those of us waiting to pay and pick up our food. 

Contrast this experience with my return flight, connecting at the same airport. This time my wife and I agree to go to Chick-fil-a. The line was just as long as Popeyes. However, the chick-fil-a team was standing at different points of the line, directing people to the right register or where to wait to pick up their order.

When I arrive at the counter, all I had to do was place my order and pay. Each team member we encountered served as a guide. We swiftly made it through the line, received our food fast and wished us a safe trip to our destination. I wouldn't be surprised if Chick-fil-A considered taking orders on an iPad to help save time similar to how they do at their physical drive-thrus.

Popeyes and Chick-fil-a both serve a chicken sandwich. Yet, Chick-fil-a had a strategy to ensure my experience was seamless, and Popeyes didn’t. 

Chick-fil-A understood who I was, and what my concerns were. They designed a customer journey helping their team understand that eating lunch at the airport was not my final destination.

Chick-fil-a understood my ecosystem. I’m traveling, hungry, and I need to move through the line quickly. This is what it means to have an awareness of your competitor with a focus on your customer.

There is a difference between being aware of your competitors and focusing on your competitors.

Competitor focus is like an obsession. It means that your center of attention is locked-in on beating your competitor. The decisions you make are driven by what your competitors do. 

For example, If you were in charge of Popeyes, you might say: 

• “They (chick-fil-a) have a chicken sandwich, so I need to have one too.” 
• “They have the pick-your-own flavor coke machine, so I need one too.”
• “They have a location at the airport, so we need to be there as well.”

Competitor focus leads to a game of comparison, rather than consideration of your customer and their needs.

When you’re competitor focused these things happen:

1. You obsess over who sold more, and who has more stores meanwhile, you lose customers because the experience is terrible.
2. You pride yourself with an expansive inventory, fancy website, app or building
3. You seek industry recognition for being the most successful, in business the longest, etc

If you have a competitor focus, you may acquire customers at the top of the funnel. But your sales funnel behaves more like a sink drain - causing you to lose as many customers as you gain.

Being aware of your competitor, on the other hand, is like peripheral vision. You notice and know how your competitors conduct business, but your focus is on your customer.

For example, If you were Chick-fil-A, you would ask yourself (and your customers):

• How can I improve the quality of my relationship with our customers? 
• How can we help each of them reach their goals? 
• What unpleasant experience exists in how we deliver value (the product or service)? 
• What can we do to make their interactions with us more seamless?

This is why you should be aware of your competition but focus on your customers.

When you’re customer-focused these things happen:

1. You retain your customers longer, and you measure success by how often they make referrals.
2. You seek a personal relationship with your customers
3. You let feedback influence your people, process and product.

If you have a customer focus, your funnel turns into a flywheel. Customers that you acquire, you retain and eventually turn into life-long advocates.

Be aware of your competitors, but focus on your customers. 

I'd love to hear from you. What are some ways you've seen this dynamic play out in your experience? Comment below.

If you would like some help with becoming more customer-focused visit askmikegonzalez.com to schedule a call.