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Your EnterQuest Bulletin - Issue 200
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| Thought for the week: "The large print giveth and the small print taketh away." Tom Waits |
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In this week's issue:
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A simple formula to beat your competitors
Most small business owners have a tendency to think that their competitors are smarter and more successful than them.
If you think this way, it's worth pointing out that if this is the case, your competitors probably also think you're smarter and more successful than they are.
So who's right, and who's going to be smarter and win in your sector?
A business with a proactive competitive strategy? Or the trader without a clue or a plan who just frets about rivals and whinges every time someone does something new?
A no-brainer, you must surely agree.
So what is there that a small business can do that will minimise or neutralise the effect of their competitors? Is there a secret formula that will ensure your customers beat a path to your door or visit your website rather than go to your rivals?
Well, while there may not be a secret or magic formula for this, there certainly is a simple formula that any small business can use. And this involves following some basic business principles and practical marketing steps.
1) Do more of what works
You should be familiar with the phrase "if it ain't broke, don't fix it", but in marketing terms this is nowhere near as important as doing more of what is working. If you can, identify the marketing activities that are producing the best results for you at the moment, or have done the business for you in the past, and then work out how you can do this again.
What was it that worked to get you that new contract, big customer or group of customers? How can you replicate that and make it work again or succeed elsewhere?
2) Be different
This is probably the crucial component in any competition-bashing strategy. In any sector or industry it's a natural phenomenon for businesses to copy other ventures - the same products, price-cutting offers, sales messages and other poop-stick promotions. The reason for this is that it's easy to be a copycat.
But this doesn't make any sense if you want your business to outsmart and outsell your rivals, and it doesn't have to involve rocket science or mastermind marketing tactics. Simple methods of differentiation include:
- Being quicker to respond to customer requests or market needs.
- Focusing on quality of product or service rather than lowest prices.
- Selling the performance and substance of your product rather than gloss.
- Being more available, open for business longer or more accessible than anyone else.
- Providing faster delivery.
- Offering more accessories, add-ons and related products than others do.
3) Be precise
Being precise with your marketing means making sure you are focusing on the value and benefits of your product or service from your customers' point of view. This will also involve making the buying process and customer experience as easy, uncomplicated and free from hassle as possible. Communicate the benefits of your offer and how you are different from your competitors, and have a clear call to action that helps your customers order from you.
Don't waffle, don't confuse and avoid saying things from your own rather than your customers' point of view.
4) Lead them higher
It's worth re-emphasising the point about "me-too" marketing tactics that involve copying competitors or simply undercutting their prices, as this will generally prove to be a short-term and very narrow strategy.
It's too easy to have a standard price, version or model of a product on your shelf or website, and then to offer a discount, lower-cost, more basic or lower-grade version for customers to buy. Again, most small businesses use this tactic, resulting in very little competitive differentiation in a market.
A less frequently used but more productive and profitable strategy is to take your customers from the standard version of your product or service and lead them to premium, higher-quality or deluxe versions. The key is to ensure that the higher price is more than offset by the higher value that the customer perceives or believes they will receive. This should be communicated clearly in every aspect of your marketing.
5) Make service a priority
It's an important point to make that the customers you're trying to attract to your product or service are totally selfish.
Every single one of them.
They don't care about you, your problems, your costs and margins, your lead times, your staff shortages, your deadlines or anything else like that.
They are only interested in themselves and the benefits they will get from your business instead of the one across the street, or the others listed in the Yellow Pages.
And a priority need for every selfish customer or prospective buyer is personal service.
They want to feel confident that when they buy from you they will get practical advice, helpful suggestions, personal treatment, the benefit of your experience, after-sales service, lengthy guarantees, and that rare "warm feeling" when they realise that you genuinely have their interests rather than your own as a priority.
These are five simple steps and marketing principles that can be applied in just about any business sector. If you don't use them, some of your rivals eventually will, and it's your business that will be playing catch-up. That's a guarantee.
Entering your business in an awards contest
Nominations for many of 2007's business awards and contests are being accepted at the moment.
Although applying for an award can be time-consuming or even a distraction, entering can be an excellent way of benchmarking your business' progress, as well as an opportunity to generate some PR.
Here's a quick guide to some of the main business competitions in the UK this year:
Awards run by banks and business intermediaries
Awards for specific activities/types of business
Each
week we provide you with summaries of some popular or emerging business
ideas in the UK.
Here
is this week's idea:
Restaurant Booking Service
E-mail hoaxes and swindles
Antivirus firm Sophos produces a top ten list (click on 'Daily Top 10 hoaxes' under 'RSS feeds') each day of the main online and e-mail hoaxes, cons and swindles, which direct you to spurious sites where your security could be compromised.
Here's the list of the worst culprits for today:
1) Hotmail hoax - a message that asks Hotmail users to verify their account details
2) Olympic torch - a message claiming to cover a virus that uses the Olympic torch image
3) Budweiser frogs screensaver - a message claiming that the famous Budweiser screensaver is actually infected by a virus
4) Bloodhound - a message claiming to provide a new virus alert
5) A virtual card for you - a message claiming to alert users to a virus-infected e-card
6) Bonsai kitten - a chain letter purporting to be about feline cruelty
7) Meninas da Playboy - a Portuguese hoax alerting of a new (fake) PC virus
8) Applebees gift certificate - a chain letter plugging a $950 gift voucher
9) Bill Gates' fortune - a chain letter claiming the Microsoft bigwig is sharing his cash
10) MSN is closing down - a chain letter pretending MSN is closing for business
The Sophos list enables you to read the text of these hoaxes so that you can easily identify them as fake if you happen to be targeted, so it's useful to keep a regular check on the list. And since February is scam awareness month, why not also check out the Office of Fair Trading's (OFT) guide to beating the con artists?
For more information about protecting your security online and when using e-mail, see our practical guide to PC and Internet security.
Regularly improving your vocabulary is not just about learning a new word and its meaning. It will improve your general knowledge and make you feel and act smarter in all sorts of personal and business situations.
Do you know the meaning of the word 'peremptory'?
a) expecting to be obeyed immediately and without question
b) likely to result in success
c) basic or done without care
d) nit-picking or overly attentive to detail
Answer at the end of the Bulletin.
The following topical business issues have been recently reported in the media. Did your radar pick them up?
1) Which new development in London is further evidence of the ongoing popularity of locally produced food?
a) Local authority canteens using only regional produce
b) A citywide vegetable box scheme for shops and offices
c) An indoor farmers' market
d) New grants to set up allotments on brownfield sites
2) Which types of worker will be affected by new compulsory registration proposals from the Department of Health (DoH)?
a) Carers working with children, elderly people and vulnerable adults
b) Personal trainers offering fitness-enhancing services
c) Teachers, supply teachers and janitorial staff working within schools
d) Nutrition and diet coaches that claim to be able to assist slimming
3) What new trend is taking place in the Welsh dairy industry, inspired by developments in Canada?
a) 'Dairy box schemes', where milk, cheese, butter and cream are packaged and delivered to customers to compete with the supermarkets
b) Milk supplied in biodegradable bags rather than bottles or cartons
c) Milk for bulk users such as schools and offices supplied in refillable barrels
d) Milk floats that run on bio-fuels rather than conventional petrol and diesel
Answers at the end of the Bulletin.
There's new guidance about data protection queries
The Information Commissioner's Office (ICO) has produced guidance to help businesses deal with data protection enquiries. Under the Data Protection Act 1998, consumers can request a copy of the information held about them by businesses on computer and in some manual filing systems. The ICO's Data Protection Good Practice Note clarifies the difference between informal and formal enquiries, and lists practical examples of how to handle queries that involve providing details about another person.
PayPal has a new security measure
eBay's payment bureau, PayPal, is introducing a new layer of security to deter fraudsters and phishers. A token is being used to generate random codes every 30 seconds, which are then used as part of a user's login process. The UK is due to take part in a pilot of the scheme later this year. Consumers will have to pay $5 for the tokens, which are physical, rather than virtual, pieces of kit. However, the tokens will be free of charge for PayPal's business customers.
Online business networking service
The Ozone Business Network allows members to meet every week without ever leaving their desks. You can network with other businesses and professionals in your business sphere or sector, on a local, national and even international basis. Meetings take place over the phone and web once a week, along with optional face-to-face sessions on a monthly basis. The service also offers other tools for businesses, such as free telephone conferencing.
Technology news for small businesses
Living IT is a useful website for any small venture with an interest in technology for the business world. As well as visiting the site, users can sign up for a free printed or e-mail version of a magazine. There are news and features sections, and a searchable database of IT resellers.
Aimed at business students, but useful for any aspiring start up who's getting to grips with researching a new market, this book explains both quantitative and qualitative research methods in practical detail, and is packed examples of how to apply research in a business context. Check out:
Just one word answer
The answer is a).
Peremptory means expecting to be obeyed immediately and without question.
Businesses are often frustrated by the peremptory manner in which regulators impose new standards and legislation. |
How's your business radar answers
1) The answer is c) - an indoor farmers' market has been set up in south west London to capitalise on consumer demand for local fare without compromising on the convenience of shopping indoors.
2) The answer is a) - care workers that are involved in providing services for children, elderly or vulnerable people may need to sign up to a proposed new Social Care Register.
3) The answer is d) - milk in Caernarfon is being supplied in biodegradable bags rather than cartons or bottles, in an effort to help the environment and boost the role of the milkman. |
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Good luck
The EnterQuest Team
This information is meant as a starting point only. Whilst all reasonable efforts have been made, the publisher makes no warranties that the information is accurate and up-to-date and will not be responsible for any errors or omissions in the information nor any consequences of any errors or omissions. Professional advice should be sought where appropriate. |
