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How to compete with larger businesses

by on April 18, 2019 in Latest News, Lead Article, News you can use, Nuggets

How to compete with larger businesses

It can be challenging to succeed when you are operating in an industry with much larger companies.

These companies usually have the resources and reputation to corner the market which is frustrating if you are just starting out or looking to grow a small business.

While it will always be difficult to compete with these much larger companies, there are a few effective strategies that a smaller company can use to compete, and these smaller businesses even have a few advantages over much larger ones.

With this in mind, here are a few tips which should help you to compete with the bigger names in your industry.

Revamp The Company Website

In order to compete with the bigger names in your industry, it is essential that you have a high-quality, professional website.

This is how you persuade a visitor to become a customer, and you can be sure that the bigger brands will have an impressive website to compete with.

For the best results, it is important to use an experienced web designer who will work closely with you to create a website which paints your company in a good light and will be able to convert visitors into customers.

Seek Customer Referrals

One of the best ways to stand out from the crowd in a competitive industry is to get referrals from your existing customers. Businesses can state that they have the best products/services, but a consumer will expect them to do this.

If their customers recommend them, however, then this can have a much bigger impact and be more persuasive. Reward existing customers for using your company, and you will both attract and retain customers.

Use Feedback Effectively

Following on from this, it is helpful for a smaller company to seek feedback from customers.

Any positive feedback can be used to promote your company while any constructive criticism can be taken on board to make adjustments to your operation to provide a better service for your target customer.

Improve Customer Service

Customers like to feel valued which is why customer service remains so important, even in a digital age. This is an area that larger businesses can struggle with due to the sheer size of their operation, but for smaller companies, it can be easier to provide an excellent service and build a connection with customers whether this is face-to-face or online.

Host Events

Leading on from this, hosting an event is a brilliant way to forge important connections with your target customer. Any type of event will be worthwhile but here are a few good examples:

  • Workshops

  • Lectures

  • Launch party

  • Charity fundraiser

  • Q&As

Embrace Social Media

Another area where small businesses actually have an edge over the competition is social media. Larger brands can struggle to use this platform effectively and engage with their audience, but for a smaller company, you can respond to each comment, make connections and show your brand’s personality.

Here are a few important tips that are helpful for a small business using social media:

  • Post valuable content

  • Do not spam

  • Respond to questions quickly and professionally

  • Use humour but do not be controversial

  • Grow your network by connecting with customers, suppliers, affiliates, investors, etc.

Use Digital Marketing

Digital marketing is essential in an internet-driven marketplace and especially for smaller companies who may struggle to stand out in a competitive industry. You should always use digital marketing from an experienced agency like Footprint Digital as this will deliver results and help you to compete online.

Practices like SEO and PPC can increase your visibility which will increase both brand awareness and reputation while directing more traffic to your company site.

Use Offline Marketing

It is vital that you increase your visibility offline, but do not overlook the value of offline marketing especially if you are a business that provides a service to the local area. This could include:

  • Advertising in the local paper

  • TV adverts

  • Leaflets

  • Billboards

  • Sponsorship

Sales & Promotions

One of the easiest ways to attract new customers to your business and away from bigger companies is to run sales and promotions. People will always want to take advantage of a good deal even if it means using a different company.

You can then persuade them to become a regular customer through the quality of your product/service and level of customer service.

Invest In New Technology

Technology plays a key role in modern-day business. There is a type of technology that can be used in every industry which can help to improve the quality of the product/service, automate tasks, reduce errors and generally improve the efficiency of the operation.

This can help to maximize your performance and compete even if you do not have the size or budget of a much larger company. Investing in new technology can be expensive, but you could look to lease the equipment, purchase second hand or find a cheaper alternative (such as open source software).

Keep An Eye On Your Competitors

Small businesses should keep a careful eye on their competitors and be ready to take action if need be. For example, if one of the larger companies decides to lower their prices then you could counteract this by running a promotion. Additionally, by keeping a close eye on your competitors you can learn from them.

Consider what areas of business they are doing well and how you could bring this into your own operation. You should also try to identify their weaknesses and find ways to use this information to your advantage. Researching your competitors could also help you to find gaps in the market which can be key for gaining a competitive edge.

It can be hard to succeed as a smaller business when you are competing with much larger companies that have the budget, size, and scope to dominate.

Although it will always be hard to compete with these companies, the above are all effective strategies for competing. It is worth bearing in mind that being a smaller size can actually bring a few benefits to a company, particularly if the above tips are put into practice effectively.

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