Taken For Granted

My neighborhood was recently added to the network of a telecommunications provider (the third available to us), providing a story of what not to do in a rapidly expanding competitive environment. 

It has been widely expected that Provider III would be entering this market, and that the company would have a good chance to enroll customers simply because Providers I and II had developed some adverse images.  This is a moment when a sharp incumbent provider would take steps to minimize that opportunity.  For example, the threatened Providers could have undertaken some appreciative outreach to their existing customers, renewal price deals, whatever.  Even a simple Thank You letter could have been issued.  As it stands, I get the message that my Provider takes me for granted.

Amazingly, neither Provider has done much of anything.  My own current Provider is grotesquely silent.  The other put up a couple of pathetic tiny "we offer fiber" signs in the neighborhood.  Can they be so confident that Provider III is no threat?

I don't think complacency is a good idea at all.  Customers want to think they're valued and appreciated.  If their vendor does no more than send bills even when a new suitor---especially one with a better reputation---knocks on the door.  Appreciative outreach won't save every account but it might reduce potential losses.

Bottom Line:  Do you take customers or clients for granted?  Do you show appreciation for their choice of you as a vendor?  Don't make it easy for a competitor to poach your hard-won accounts!

Strategies for Dealing With a Highly Competitive Market

More than a few of the small business owners in my network entered a highly competitive marketplace.  Among them are financial planners, insurance agencies, pizza bakeries, and life coaches: a mixed bag.  I watch their marketing with great interest because they have the task of establishing their own credibility where there are already very successful entrants.

Frankly, too many adopt a doomed strategy in promoting themselves.  This one can be illustrated by a slogan that seems to be on every pizza delivery box in America: "You've tried the rest, now try the best".  Consumers' tastes are varied enough that such a claim is ridiculous on its face.  Trying to tell the marketplace that your business is "the best" looks like a hollow boast.

There are two ways to compete effectively in a market full of seemingly identical players.  And they both involve establishing a competitive advantage.  One depends on the first wave of customers and clients passing on the word that your business is superior on the basis of product, service, price (or combinations thereof).  That's up to you: be a superior provider every minute of every day.

The other is putting together a marketing campaign that calls attention to meaningful competitive differences.  This does not involve claims of better products, better service, and better price.  Trust me, you won't be believed (look at that pizza box again!).  Do you offer a product or service that you're especially good at or which is not as well represented in the market?  Do you have an expertise serving particular types of consumers?  Do you have certifications or credentials that make you stand out?  Stumped for ideas? don't hesitate to ask existing clients and customers what they like best about your offerings.

For example, a financial planner I know has a significant proportion of clients who are owners of small businesses.  He can make a point of positioning himself as an expert meeting the specific needs of entrepreneurs.  None of his competitors of which I am aware "own" this space.  It's an opportunity!

It is possible to win in a tight market.  But it requires thoughtful marketing work.  You can do it!