How to beat your competition (and keep your customers)
What do I mean by competition and why is it important? ‘Beating’ your competition is not just about survival but also about positioning your business for long term success and growth. It involves strategic thinking to ensure that you succeed in a competitive environment. Sound dramatic? It’s really not but it is something you need to consider because you’re always on a mission to elevate your brand and attract more people to it.
I’m going to run you through 3 areas for you to focus on but first it’s key that you understand this…
Your competition isn’t just another brand, it can be another thing entirely. Competition to coffee isn’t just another coffee brand or chain, it might be tea, for airlines it could be high speed trains (unlikely in the UK!), for fitness centers and gyms it’s home workouts and outdoor activities. Cinemas are dying out because of streaming services, shops on the high street are empty because of online shopping. You get the idea.
Why do you want to beat them - Because you want to attract and retain your customers and you want to be bold and assertive about your brand. If you’re a reseller for example, you can only compete on service and price etc. you can’t compete on product so it’s important you understand what I’m going to take you through in this workbook. Beating them also means attracting customers away from your competitors and maintaining financial health which is of course super important.
Ok, so let’s get on with it, it might be a little wordy but it’s all so important I promise you. These are just snippets of hours of work and years of experience. First up
Number 1 - Knowing HOW to win customers
Attracting customers and retaining them so they come back time and time again is critical to any business. It’s literally the skeleton of the ecosystem of e-commerce. Start with these 4 focuses:
Knowing your customer is key
When you know your customers you have the keys to the castle. But how do you get to know them? Speak to them that’s how. Being hyper aware of their actions and trying to get to know them as much as possible, like you would any new relationship, really pays off.
The crux of getting to know your customer is centered around what’s important to them (and this is important because it’s not about you, it’s about them) - their likes, dislikes, morals, where they hang out, their lifestyle etc. Emotions play a huge part in this and it’s up to you to pay attention to any cues they give you in this area so you’re ready to mirror it back to them.
When you really know them you can engineer your product to suit them, you can create content you know they’ll love, you can create a community they want to be a part of, you can give them a ‘personalised’ service and product and you can generally waste far less time because you know what they really want.
Not only this but building strong relationships with your customers based on understanding their needs and preferences improves customer retention (big time) and loyal customers are much more likely to return and make repeat purchases. But why does this happen? Because the more they see you to be just like them, the more they trust you and trust is HUGE in brand building. When we like and trust someone they become much more favourable in our minds, and your brand is the same.
Feedback from your customers also provides a valuable insight into what products could need improvement or innovation. It also allows you to understand their pain points and anxieties and most importantly address them. When you start to address their concerns in your marketing and across all channels you increase conversion and this is obviously your main aim.
Understanding them goes much deeper as it’s critical you understand why they come to you. What is it in their lives that triggers them to purchase from you. I cover this in detail in my private membership.
2. Excellent customer service
Customer service is EVERYTHING! And it extends far beyond answering customer emails, it’s literally everything, it’s your customers’ total experience with you as a brand. From your website navigation to how you thank them for their order. The language you use to speak to them, to how they feel when they unpackage your product. Your brand creates a ‘feeling’, a ‘vibe’...what is it?
As a small business you have the advantage of being able to set yourself apart from larger competitors by offering a more personalised and intimate service experience. Larger businesses can’t do this so effectively so make sure you take advantage of this, especially in the early years when you’re really focussed on building brand tone of voice and service.
Exceeding customer expectations by going the extra mile goes one hell of a long way. It creates a memorable experience that customers are much more likely to share with others. Word of mouth promotion is so invaluable for small businesses. When customers see that a business is willing to put in extra effort for their satisfaction, it increases customer loyalty tenfold. And we all know that a loyal customer is more likely to make a repeat purchase and recommend you to others…and that’s the dream.
Consistency here is also vital. Consistent quality service builds trust. Customers want to know they can rely on a business to deliver the same level of service every time they interact with it. Positive customer reviews and testimonials often stem from consistent positive experiences, acting like a magnet to attract more customers just like them and so perfect for you.
So remember, theoverall importance of excellent customer service is not only to delight the first time buyer but to ensure customer retention. Positive reviews and referrals, effective handling of complaints and feedback (and a great product of course) will give you an overall increase in sales.
3. Not compromising on quality (unless cheap is your thing)
Consistently delivering high quality products builds trust with customers. Trust is fundamental for customer retention and loyalty. High quality lead to satisfied customers who are more likely to leave positive reviews and recommend the business to others, and this is vital for building and maintaining a strong reputation.
I see lots of businesses neglect product quality which seems craxy really seeing as that’s the game they’re in. But I think sometimes businesses think there are more gains to be had elsewhere and then product drops to the bottom of the list. I’m here to tell you that a reputation for quality can allow you to position yourself as a leader in your niche which also allows you to command higher prices.
Don’t overlook the long term cost savings with high quality products. High quality products typically result in fewer returns, complaints, and claims, saving your business time and money in the long run.
The last thing you want is for customers to say ‘yes it was ok, but the quality wasn’t great’. Disaster! I’ve seen comments like this made by customers in very successful businesses. But how better could their figures be not to mention their reputation and retention if they took the time to really focus on their product and ask themselves how it could be better?
4. Making sure your customers can connect emotionally with your brand and content
I’ve touched on this already but I’m pulling it out separately to elaborate further because it’s so important.
Ensuring your customers can feel a part of your brand in this way is really important - here’s the main ways you can make sure this happens for your brand. These are extracted from something I wrote a while back as part of a workshop for hundreds of business owners just like you.
Social currency - Everyone wants to share their opinions because they believe it enhances their social standing. The notion that perception is reality drives us to present the best versions of ourselves, and social media amplifies this tendency. We love sharing our thoughts and are encouraged to do so. Discussing ourselves not only makes us appear knowledgeable but also provides a sense of pleasure in knowing more than others. Sharing impressive facts or remarkable insights is driven by our desire for social approval, which is why such topics are frequently discussed. But what makes something interesting, surprising, or novel?
As stories are shared, they often become more remarkable through embellishment and selective omission, making word-of-mouth marketing so effective—the best version is always shared. When it comes to products, we gravitate towards those that make us feel or appear better, enhancing our lives or situations. We naturally show off our new acquisitions, often unconsciously, in a continuous quest to improve our social status. Allowing your customers to build their social standing through your product can be monumental—it becomes a form of social currency they are reluctant to part with.
Context and cues - Certain stimuli make some things more prominent in our minds than others. Consider Nike and its iconic slogan "Just Do It." This powerful tagline is embedded in our minds, often associated with motivation and athletic achievement. Whenever we think about sports or personal fitness challenges, the phrase "Just Do It" comes to mind, reminding us of Nike's brand. This strong association has been built through consistent messaging and branding across all their marketing materials. Leveraging habits can be transformative. We absorb so much daily that we can instantly recognize a brand from the smallest cue.
Consistency is crucial, along with strong, coherent branding. Linking your brand to memory associations keeps it at the forefront of people's minds. Some associations are deeply embedded in our thought processes, while others are relevant for a short period, such as a viral meme or recent news event. Some references endure, while others fade away. Subtle cues in your branding—logo, tagline, positioning statement, colours, props—can easily create associations and build credibility. However, this can also work against you. In essence, branding is undeniably important!
Psychology - Want people to talk about your product and remember your brand? The key is to make them feel something. Understanding your customer is crucial, as it allows you to tap into emotions that matter to them. Repeatedly failing to evoke emotions will make your brand forgettable. What prompts us to forward an email or share a social post? It's the emotions we feel—positive or negative—that compel us to share. Think about the content you enjoy; it likely evokes strong feelings, breaking your usual routine. High-arousal emotions like excitement or anger are the most shared. Many brands make the mistake of focusing solely on product details—what it can do, its ingredients. While this information is important, it rarely evokes strong feelings. Marketing that leads with such information fails to engage emotionally most of the time. Leading with emotions is always effective, which is why user-generated content and reviews are so powerful. Emotions drive people to take action. Fact.
Storytelling - Stories are memorable, engaging, and have the power to evoke emotions. We all love a good story! We enjoy hearing them and telling them. A compelling brand or product story is more likely to be retold, enhancing social currency by making the storyteller appear in a certain way through association. Crafting a good story is harder than it seems—it requires a solid structure and a surprising element. Emotion is crucial here, and a strong connection between the brand and the customer is essential—knowing your customer is key! Successful businesses often have a compelling narrative that resonates deeply with their customers, creating a connection that goes beyond the product itself and builds a community around shared beliefs.
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Number 2 - Know Your Numbers
Knowing your numbers is super important, maybe the most important in lots of ways. It will help you make smart decisions and keep your finances in check. It shows you where you're making money, where you can cut costs, and helps you plan for the future. Plus, it makes it easier to budget, forecast, and attract customers.
Here’s 3 things that should have your attention:
Make sure you push your average order value up with each sale
Increasing the average order value (AOV) is crucial for small businesses as it boosts revenue and profit margins without needing more customers. Higher AOV maximises customer lifetime value (CLV), improving the return on investment for your marketing efforts. It also enhances inventory turnover, reducing excess stock and storage costs. One of the ways in which you can really drive up your AOV is by providing personalised upsells and cross-sells which also improve customer experience and satisfaction, fostering even more loyalty. Effective promotions and data driven marketing strategies further drive AOV, creating a competitive differentiation.
A higher AOV can give you more financial stability, providing a buffer during economic downturns. A perfect example of this was post covid when things took a downward turn with regards to customer spending. Those with a lower AOV and less cash profit were affected by this more than those with a higher AOV. Obviously there are lots of nuances to every situation here but generally a business with lower AOV is more reliant on volume to surpass all business costs so they can drive a profit.
2. Make sure you increase your customer lifetime value by giving focus to retention tactics as well as acquiring new customers.
To boost customer lifetime value, make sure your strategy focuses on both retention and acquisition.
For retention, personalised customer experiences, exceptional service, and the implementation of loyalty programs can really help. Engage customers with regular communication, seek feedback, and offer additional value beyond products.
For acquisition, use targeted marketing and optimise your online presence. Collaborate with other businesses for joint promotions and attract new customers with introductory offers.
Combining both approaches, maintains consistent branding to build trust and recognition.
Balancing these efforts ensures sustainable growth and profitability by keeping existing customers loyal and continuously bringing in new ones.
3. Manufacturing at better margins
Your margin is the heart of your figures and so giving it focus to ensure you drive the best possible outcome is totally worth your time. I always get asked what a good margin is and it’s a hard one to answer because it’s often product and market dependent but…generally speaking I always make sure my clients are operating at 50% minimum.
Anything less than this comes with its difficulties.
A healthy margin allows you to often spend more to recruit your customers, but it also means with each sale you’re also bringing more cash into the business which improves cash flow and money available for reinvesting into the business. If you’re also working on my first point concerning average order value then with each sale you stand to also increase your customer lifetime value which will net you even more cash margin.
I teach all of this and so much more in my signature KPI program so if you’re struggling to get a grip of your figures or even know what you should be looking at then it might be perfect for you.
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Number 3 - Oiling your website i.e optimising conversion
How do you optimise your website? It is so important to have an excellent website to attract those customers and boost your sales. By providing an effective website you will improve user experience, keep your customers engaged and increase visibility which will in turn lead to higher conversion rates and a boost in sales. So, how do you do it?
I’m going to take you through 3 points which are broken down in bullet points.
1. Reducing friction points - ease of navigation, ease of use of your website
Any perceived complexity in your website becomes reality for your customers. Make sure everything flows as it should and you make it as easy as possible for your customers to shop.
-Simplify Navigation. Have a clear menu structure. Ensure your website has a clean, intuitive navigation menu. Categories should be logical and easy to find. You need an easy navigational flow. Don’t fall into the trap of trying to feed them what you think they want. Take a look at your popular searches and your top sales and make sure that’s what they see first.
-Search Functionality. Implement a robust search bar to help users quickly find what they’re looking for. It is a MUST!
- Improve load time. Optimise your images by using compressed image files to reduce load times without sacrificing quality. A slower load time than 4 seconds could be damaging.
- Mobile optimisation. Make sure your website is mobile friendly and mobile first! It should adapt seamlessly to different screen sizes. Adapt to touch friendly elements making buttons and links large enough for users to tap easily on mobile devices.
-Implement a streamline checkout process. Guest checkouts allow users to make purchases without creating an account. Use simplified forms, minimise the number of fields in form to only essential information.
- Clear call to action (CTAs). Prominent CTAs are easily visible and stand out on the page. Use action oriented language which is concise and compelling that encourages users to take the desired action.
- Provide comprehensive information. Include detailed descriptions, high quality images and customer reviews on your products. I recently ordered what I thought was a mug set as that was in the picture when I ordered. I was very disappointed when only one arrived in the post! Also make sure you have a FAQ and help sections that address common questions and issues proactively.
-Enhance user trust. Display your security certifications and trust badges prominently. Have transparent policies that clearly outline shipping, returns and privacy policies.
- Test and iterate. A/B testing, regularly test different versions of your pages to see which performs better. Also collect and analyse user feedback to identify pain points and areas for improvement.
2. Dealing with customer anxieties
Dealing with customer anxieties effectively is vital for building trust and ensuring customer satisfaction. Have a think about all the worries your customer might have whilst shopping your products. Will it fit? When will it arrive? Will it wash nice?Here are some strategies to help manage and alleviate these concerns:
Open and honest communication. It’s common sense right? But you’d be surprised. Be transparent about your business processes, policies and any issue that may arise. Regularly update customers on their orders, especially if there are delays or issues, but be realistic and manage their expectations. Make sure your contact information is easy to find and provide clear instructions on how to reach you.
Empathy and active listening. We all know how annoying it can be when a company takes ages to respond to a query. Listen and understand the customer’s worries and frustrations. Acknowledge their feelings in your response and show that you genuinely care about resolving their issues.
Clear policies and guarantees. Have clear, fair, and easy to understand return and refund policies. Demonstrate your commitment to customer satisfaction.
Quality customer service. Respond to customer queries and complaints in a timely manner - but remember to manage expectations with this. Add a personal touch to your interactions to make customers feel valued and appreciated.
Proactive problem solving. Identify patterns and keep track of common issues and address them proactively. Provide a solution or alternatives quickly to minimise inconvenience.
Educate your customers. Provide detailed and clear information about your products. Offer guides, tutorials or FAQs to help customers understand how to use your products effectively.
Build trust. Maintain consistency in product quality and service delivery. Encourage satisfied customers to leave positive reviews and testimonials. Engage with your local community or online community to build a positive reputation.
Get onboard with the technology. Use automated systems to update customers on order status, shipping etc. Use customer feedback tools to gather and analyse customer feedback for continuous improvement.
Create a positive experience. Implement loyalty programs to reward repeat customers. Make it personal - tailor offers and promotions to meet the needs and preferences of your customer.
3. Introducing urgency and/or scarcity
Scarcity is when your customer thinks they won’t be able to get it again if they don’t buy now, which in turn can make them buy. You have to use this carefully, obviously there needs to be some truth to it. Telling them how many have been purchased by other customers might be enough. If there is only a certain number of the product left, make this very clear to the customer.
Urgency can also lead into scarcity, they tend to work hand in hand. However, urgency is created through delivery cut off times, limited offers, and the narrative around the product, for example it being perfect for an upcoming event such as festivals, summer holidays, seasonal events.
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And that’s a wrap! I hope that helped you and you’ve taken lots from it to apply to your own business.