Competition is good for businesses and people.
Here's why: it forces you to step up your game and start addressing the things that are important to the customer. Because if you don't, your competition will, and your existing customers will find more reasons to switch over to them. And in the process, your audience gets better value and meets their goals.
You might be losing customers to the competition right now without realizing it. Many businesses focus on acquiring new customers, but they don't realize that keeping them on is even more important. You can't neglect other areas of marketing that don't directly bring more customers in.
In this post, I'll talk about activities and services that businesses fail to do. And as a result, leads to customers switching over to competing brands.
Here are five main reasons customers could be leaving you for your competition.
Your competition addresses pain points better
People will always use products and services that best resolve their pain points, even if the solution is expensive.
You have to identify if the product or service you're selling really meets a customer's higher goal and not just their immediate need. That is, are you focusing on your customers' success gaps?
For example, one of the products in our company is a form tool. It's one of many available in the marketplace, most of which are free. However, our contact form plugin is a paid tool that is a top plugin in the entire WordPress marketplace.
Why? Because we don't just provide a form tool that lets customers write to you. We understand that a business's real need is to drive conversions and get profits. And so, we offer features and customer support that far exceeds what other form tools do.
Ask yourself if you're really meeting your audience's pain points? And look for ways to give more than your competition does. When you do this, you'll keep customers from switching.
They create better value
You may offer a competitive price to your audience, but higher-priced competitors can still win over more people. One reason is that they create the perception of offering greater value.
For example, they may offer free shipping, a loyalty program, a long-term warranty, or some other add-on that shifts the balance in their favor.
So, you need to compare your offering to that of your competition and look for ways to create a value bundle. Or you need to rebrand and rephrase the way you present your products and services.
Focus on presenting the benefits your business provides rather than your product's features. When you showcase more value, you'll keep customers loyal.
They offer product education and free resources
The average consumer needs educational material to learn how to use your product effectively.
You may be offering great products and services, but without enough guidance, some customers will give up on trying to figure it out and move on to a product that provides better support.
You can help educate your customers by providing them with free resources and educational materials. For example, video tutorials, case studies, templates, how-to guides, and more.
Your competition fosters an online community
You'll find that many big brands have cultivated a community of people, usually consisting of customers and even fans. Many companies create Facebook and LinkedIn groups. And even building their own online communities using a membership plugin. And some are active on online forums.
Creating a community is important because it helps customers learn from each other and network.
Communities also act as social proof implying that many other people are happy with your brand. Such proof serves as a compelling reason to not switch over to the competition.
They have better customer service
There's no replacement for good customer support and services. You could offer better products or lower prices, but without solid customer support, people will switch over to your competition.
There are several key features that make customer support 'good'. Do an audit and ask yourself if you meet the following standards:
- Customers get a response, even an automated one, within a day
- You practice active listening when customers reach out
- Customers have multiple ways to contact your brand. Through email, contact forms, social media, phone lines, and live chat
- You offer 24/7 support
- Your staff works towards achieving more than 95% happiness scores
- You provide training and educational material to your customer support and sales staff
- Customers can easily get refunds, returns, and other benefits with relative ease
Even the best product in the world can fail if it doesn't come with good employee-customer interactions. Try to out-do your competition in terms of customer support and you stand a great chance of keeping customers loyal.
They have a stronger brand image
A strong brand image impacts how your customers perceive you and your products. It's the sum total of your business's personality and the way it presents itself.
If your competition has a better-designed website and logo, or a more professional-looking office and customer support team, it will naturally appeal to your customers more.
You need to give your brand some attention lest you lose out on customers. If your competition has an edge in this area, invest in building a stronger brand image for yourself.
You can do this by :
- Updating your brand logo and website to better reflect your business' personality
- Hiring a professional design team to improve the look of your office
- Training your customer support staff so they exude an air of confidence and professionalism
- Creating content that presents you as an authority in your industry (use influencer marketing tactics)
In this way, you can easily give your brand a boost and attract many loyal customers from the competition.
Using the information from these five reasons, you should be able to get started on figuring out how to solve your customers' problems. That's where your product or service has a lot of potential for growth. By solving their problems and giving them a better value proposition than your competitors, customers will keep coming back again and again because you'll finally be addressing their needs.