How New Online Businesses Can Survive in a Competitive Market
Competition is healthy in that it will make you more innovative to stay ahead of the curve. However, competition can also be intimidating and you need to know how to handle it in the best possible way. Here are some tips to consider if you want to survive and thrive in a competitive market.
Attract and retain customers
Many online businesses do not know enough about their potential customers to build effective marketing campaigns. You are competing to attract and retain customers so you need to know what they regard as most important – low prices, quality products, customer service etc.
Defining your target market and creating customer personas will help you to find out more about what they find most appealing. Your unique selling point should be obvious – no one should have to ask why they should buy from you rather than one of your competitors.
Contracts are an important part of your online business as staying on top of all your customer obligations is essential if you want to retain them. SirionLabs offers a contract lifecycle management software that provides a simpler, smarter way to manage all your contracts.
Know your competition
You need to know your competitors, what they offer and the prices they charge. What do they do well and are there areas where you could improve on what they offer?
A competitor analysis helps you to identify a way to differentiate your business. Identifying a single weakness could turn into a major competitive advantage for your business. Perhaps competitors do not source materials ethically and you do – this could help you to stand out from them.
Where your competitors are weak, you can make the most of the opportunity to outperform them and where they are strong, you can learn from what they do.
Step up your marketing efforts
Marketing is probably the most important way to stand out in a competitive market. Make an effort to tell people about your business, what you sell, and why they should buy from you.
Organic marketing on social media can be an effective way to promote your brand image. Direct selling can put off prospective customers but engaging them first and developing their trust is essential today.
Your website, social media profiles etc., should project a unified brand image and message. If you use ads, they should be relevant and support your brand message. Being able to deliver on your promises is critical, too, because once you disappoint people, it’s hard to win back their trust.
Keep introducing new or better products
When you’re running an online business, you have to get used to constant change. You need to keep developing your existing products, especially your bestsellers, if you want to keep outperforming your competitors and keep your customers happy. Constant innovation will not only help your teams to stay focused but maintain the interest of your current customers.
Giants have been wiped out by a lack of innovation. New entrants are continually disrupting the market and your competitors are likely to be innovating all the time – you can’t afford to rest on your laurels.
Explore partnership opportunities
Many online businesses reach out to other businesses today in the hopes of reaching a new target market or demographic. This can provide opportunities that are otherwise not available. If you find you are not able to consistently deliver on time to customers, consider teaming up with a partner to expedite delivery.
There are still people who hesitate to order online because they don’t like to wait for products to arrive. If online marketing is not your strength, you could partner up with an online marketing company.