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5 Ways To Beat The Competition With Smarter Spending



If you’re a business owner, you’re swamped by competing priorities, not the least of which is dealing with constant competition, in a limited marketplace, with a limited budget. If the bad news is that you have to spend money to make money, the good news is that by being smarter with how you spend, you can get ahead of the competition and stay there.

5 Ways To Beat The Competition With Smarter Spending

#1. Promote What Makes You Unique

Your customers care very deeply about what makes you different. Why? If you and all your competitors were more or less the same, offering similar products and services at similar prices, customers would have a much more difficult time choosing where to spend their money. But if they saw something different in your business, a unique value, then it would be easier to make a purchase decision.

If you devote your advertising, marketing and promotional resources to highlighting the features and benefits that set you apart from the competition, then there is a much better chance that potential customers will spot the difference and choose you.

#2. Improve the Customers’ Experience of Your Business

Don’t mistake this as simply customer service. It’s much bigger than that. Or, put another way, customer service is everything you do as a business.

Your business is customer service.

Unless you happen to have an absolutely unique product or service (if you do, it likely won’t remain so for long) or plan to compete on price alone, which could be the most expensive option, the only thing difference between you and your competition is the experience your customers have of your business.

From the moment they call, walk in or land on your website, make that experience better than the one they had with your competitors and you will win them over.

#3. Keep Your Enemies Close

There’s perhaps no better way to spy on your competition than on the internet and social media. Websites and social accounts are often the first place that new products, hires and affiliations are announced.

#4. Don’t Be Socially Shy

OK. If you’re watching them on social, you know they’re watching you. So do you avoid social media altogether? Unfortunately, the increasing reality for most businesses is that they must have an active presence on social, especially if yours is a B2C business.

How do you spend wisely when you get social? Research as much as you can about social media marketing. Social can be very wasteful or very rewarding, and it’s often a very fine line between the two.

#5. Spend As Much on Existing Customers as on New Ones

You’ve heard the one before about how much cheaper it is to keep an existing customer than it is to attract a new one. While that’s been proved true in countless studies, it only tells half the story.

Here’s the other, perhaps bigger, half: existing customers spend up to five times more per transaction than new customers.

You can do some fast research to prove this. Ask yourself the following question: how many of the largest sales in my business came from brand new customers and how many from existing customers?

So existing customers cost less to keep and produce higher sales. Yet, on average, businesses spend 80% of marketing budgets on attracting new customers and only 20% on retaining customers.

Images: “Best profits for you. The others get 20%. The winner get the most profits./ Shutterstock.com

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The Author:

A senior copywriter, blogger and social media specialist, Stephen brings 15 years of experience to his blog posts. The author of award-winning copy for websites as diverse as auto parts to business finance and marketing, Stephen has a keen eye for how content is consumed on the web. He is always on the lookout for thought-inducing new topics to which he can add his unique spin and share with his readers."

Add Your Comment

  • http://www.it-sales-leads.com/ Barbara Mckinney

    Great tips. You don’t really have to spend huge amount just to compete with others. All you need is the right amount of information on how to strategically stand out from the crowd. I love your tip #2, customers’ experience is the least appreciated when it comes to marketing, most businesses don’t realize that it is the most important thing that could help your business reach its goals.

  • http://www.callboxinc.com/ Marissa Davidson

    I like it! Competitions are everywhere. Business owners have their own marketing strategy on how to beat their competitors. You can actually promote what you can offer and you will win them over. Also, having an active presence on social media could be an edge.

  • http://about.me/Lindeskog lyceum1776

    Isn’t the best way of spending money on investing time and energy on your old customer? How much does it cost to get a new customer?

  • Mark Breen

    Hi Stephen. I must say your point in relation to focusing more on current clients than on acquiring new ones echoes a point I made in a post a while back too. It always amazes me how much people focus on landing new clients when they have some great ones already.

  • Sandra Crowe

    I strongly agree with you Stephen, your points of view is what new entrepreneurs need to make their products popular and make it the “best for you” item, your point of view is amazing and I’ll keep in touch with your posts.