Surviving in a Highly Competitive Market

In a highly competitive market where the investment has been made and customer acquisition is key to get to the break-even point in a preset period of time, discounting your product’s price may be necessary even though you  believe that your product offers the best value. As well, you must ensure that you can retain current customers as you spent significant marketing dollars to acquire them so you cannot afford to loose them to the competition. Providing excellent customer service is key as well as controlling operating costs. 

It is important to realize the mistakes that were made to get you in this mess in the first place as product discounting can be a downward spiral and erode perceived value.  What was your differentiator and position? Is this differentiator still valid today and if not, can a new differentiator be found and how long to roll it out to the market? When timing is critical to maintain a good cash position, additional investment to develop a new differentiator may not be possible; it is all about selling your product before you can re-invest.

Here are some suggestions should your business find itself in such a situation:

1. Focus on sales!

2. Offer a low price for an introductory period to acquire customers

3. Introduce a loyalty program (to keep existing customers)

4. Introduce a compelling referral program (to gain new customers)

4. Ensure you offer great customer service

5. Be very creative with your marketing by testing different offers and seeing what works

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