Creating an effective competitive advantage will revolve around building trusted relationships, differentiation, a niche market focus. Using price as a competitive advantage can be dangerous as it can be a fast track to the bottom. A competitive advantage will contribute more than anything to an SME’s success particularly when competing with larger organisations. Smaller businesses in the community are far better placed to build a strong and long lasting competitive advantage than bigger businesses or corporations.
Trusted relationships can create the best competitive advantage
Relationships of all kinds can be very delicate and require extra effort to maintain. If trust is central to building your relationships your competitive advantage will be much more successful. A trusted relationship can also be something that can provide the business as well as the client with added security. Trusted relationships will create longer lasting relationships, despite there being many trials and tribulations.
Building effective and lasting relationships is a necessity for survival and is today closely linked to information technology and social media. Poor relationships will quickly cause the performance of the business to deteriorate and this will be noticed by clients.
Competitive advantage is rarely sustainable with technology alone
Technology may give you a short-term competitive advantage. It should never be relied upon because of the many advances and other aspects of a business clients will be more interested in. The competitive advantage of the business can well depend on how efficiently and effectively employees work together and interact with clients. If technology helps them to do this then it will have an important place. Business strategy should always be considered before technology is introduced. Keep in mind technology is available to your competitors making it difficult for it to be a competitive advantage.
In the accelerating pace of global competition and technology, successful competitive advantages are being defined by innovative strategies and action plans for utilisation of what modern marketing has to offer, in order to build a more sustainable competitive advantage.
A competitive advantage can be created with modern marketing
Keeping up with modern marketing will take time and money which you may not have. Look to a trusted advisor to keep you up to date with website development, social media, content and email marketing, mobile, big data and analytics. Being across all of these things can create a competitive advantage particularly if you use them in an innovative way.
How to identify your competitive advantage
Many business owners know they are good at what they do but struggle to explain why a client should choose them over someone else. Putting your competitive advantage into words is the first step to using it in your marketing.
Start by asking a few practical questions:
- Why do your best clients keep coming back?
- What do clients say about you when they recommend you to others?
- Which problems do you solve faster or more reliably than competitors?
- What specialist knowledge or experience does your team bring?
- Is there a niche market or location you understand better than anyone else?
Talk to clients directly and read through your reviews and testimonials. The words they use often reveal strengths you take for granted. Look at competitor websites too, and note what they all say. Your advantage usually sits in the gap between what everyone claims and what clients actually value.
Communicate your advantage consistently
A competitive advantage only works if your market knows about it. Once you have identified it, make it the centre of your messaging rather than one point buried in a long list of services.
Feature it clearly on your home page and in the opening lines of your key service pages. Reinforce it in your social media posts, email newsletters and proposals. Case studies and practical articles are a strong way to show your advantage in action instead of simply claiming it.
Make sure your team understands it as well. Every conversation with a client is a chance to demonstrate the qualities that set you apart, from how quickly you respond to how well you follow through.
Finally, review your position regularly. Markets shift and competitors adapt, so check every year that your competitive advantage is still relevant and still genuinely yours. Small refinements made early are far easier than rebuilding your position once it has been lost.
